– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.
7:00 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today's watch list can be found here.
Yesterday, the Dow gained +0.4%. The S&P 500 closed up +0.3% and the Nasdaq finished mostly unchanged.
This morning, European markets advanced at the open. Benchmark indexes in China and Japan closed with gains of over +1%, and U.S stock futures are considerably higher.
The Commerce Department will release its second estimate of third-quarter GDP at 8:30 a.m. ET.
The Federal Reserve will also release its inaugural report on the nation's financial stability, which will assess key vulnerabilities including asset valuations, borrowing by businesses and households and financial sector leverage.
The US Census Bureau will release data on new home sales for October at 10 a.m. ET.
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Now You Can Start Receiving James' –
Technical SetUps WatchList Each Market Morning
Early each market morning James diligently screens through hundreds of high EPS and RS ranked stocks that have solid fundamentals.
He is looking for those select few which are setting up in sound technical bases and which looked poised to breakout that day.
Each stock is listed with specific trading criteria such as a TRIGGER PRICE, TRIGGER VOLUME and MAX BUY PRICE.
Normally $19.95 a month, now just $9 a month through James' BuyingBreakOuts.com website.
LEARN MORE ABOUT THIS SPECIAL 50% DISCOUNT OFFER HERE
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Investors will check Tiffany (TIF) earnings to see if the luxury jeweler has sustained its momentum from the second quarter, when it revealed surging sales and raised its profit forecast.
Burlington Stores (BURL), Dick's Sporting Goods (DKS), J M Smucker (SJM) will release earnings before the open. Guess (GES) and La-Z-Boy (LZB) will follow after the close.
This morning, I ran my routine stock screens, yet did not find any new stocks to add to our watch list.
We still have 8 stocks which we will be watching for the next buyable breakout – see here.
One of those is MSI which traded +1.5% higher yesterday with a +33% increase in volume, and looks poised to break out.
Chart courtesy of stockcharts.com.
Now you can get access all watch lists with updated trading criteria including –TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock here.
Missed any of these morning reports? You can find all previous reports here.
Standard rules apply – any gains above the stock's TRIGGER PRICE while the day's volume is at least on pace to make the TRIGGER VOLUME would have any of these set ups confirming a BUY signal up to their MAX BUY PRICE by default.
Keep in mind that when a stock breaks out – becomes potentially buyable – there are other factors to consider.
Volume on the breakout. A stock that is breaking out through resistance, with an increase in volume of +50% above the stock's average volume (50 DAV), is showing more conviction and more demand. This is not saying – all lower volume breakouts will fail. Actually, we've seen many continue higher. If you have found that you did buy a stock that showed lower daily volume or volume under 50%, going forward – simply treat it a regular trade.
Earnings BreakOuts. Many stocks from our watch list will break out during earnings season. Earnings breakouts can be more rewarding, however, these trades carry much more risk then traditional (non-news) breakouts. One needs to also consider – the strength/weakness of the fundamental news that was just released along with the forward-looking guidance the company gave, investors response to the conference call, etc. For anyone who is not familiar with – buying earnings breakouts – I suggest that they sit through a few seasons to study, paper trade, and show some profits, before applying actual capital.
As always, if anyone has any questions – please feel free to email me at james@jamestaulman.com as I would be glad to assist you.
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