6:45 AM – MORNING MARKET UPDATE & WATCH LIST NOTE: Today’s watch list can be found here. After a brutal week last week, the Dow Jones closed -0.4% lower yesterday, suffering a slide late in the day. The S&P 500 ended -0.6%, while the Nasdaq lost another -0.9%. This morning, U.S. stock futures were pointing higher. European markets opened up, except for London’s FTSE 100 index. Asian markets ended the session mixed. Analysts are hoping for strong numbers from Goldman Sachs (GS), BlackRock (BLK) and Morgan Stanley (MS). All three are reporting results before the opening bell on Tuesday. Domino’s Pizza (DPZ), Johnson & Johnson (JNJ) and Progressive (PGR) also plan to release earnings before the open Tuesday. Then, Netflix (NFLX), Del Taco (TACO), IBM (IBM) and Sonic (SONC) are set to release earnings after the close. ____________________________________________________ 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 ____________________________________________________ In case you missed it, there is the special report I put together after the market pulled back last week – “High-Ranked Pullbacks to Support“. I ran my routine stock screens early this morning, 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 stock in particular is ORLY which traded +1.2% higher yesterday with a +26% increase in volume. This automotive retailer was just added to our watch list over the weekend. Chart courtesy of stockcharts.com. 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.