Daily - Go to TTD's Chart scroller of Breakout Stocks - Tuesday, January 31, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Tuesday, January 31, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, January 23, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
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Ticker Tape Digest's Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are
most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent. 
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).
TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time high in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco leo@tickertapedigest.com. For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 10
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list very selective. Many breakout stocks moving off earnings. Pet stocks doing well. Stock market rallies after sharp day-and-half sell off.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - IDXX - ABOVE AVERAGE |
IDXX, based in Westbrook, Maine, makes products for the veterinary and dairy markets. Annual revenues: $1.7 billion. IDXX's stock breaks out Tuesday from an 11-week flat base. The move carries the stock to a new al-time high. That is bullish. 
So far today, IDXX is trading 869,795 shares. Its average daily volume is 1.9 million shares.
Interestingly, IDXX serves the pet industry. That is the same field TTD's accumulation play Tuesday - Zoetis Inc. - is in too.
IDXX will report earnings this Thursday, February 2. 
IDXX's stock rose in the morning and touched its breakpoint line (see 10-minute chart).
The stock then cleared its breakpoint convincingly late in the session with a big pickup in intraday volume.
Tape Action
IDXX's tape action shows significant bullish accumulation.
A key bullish trade came near the close Monday when a block of 51,239 shares (duplicated) crossed the tape at $120.50.
That was up from the prior block trade at $120 on 4,400 shares. 
Then near the close a block of 68,457 shares (duplicated) crossed at $122.33.
That was up from the prior block at $122 on 4,100 shares.
Business
IDXX makes products for animal veterinary, livestock and poultry, dairy and water testing markets.
The company's segments include Companion Animal Group, which distributes products and performs services for veterinarians
Its bioresearch service makes products used in the detection of various microbiological parameters in water, Livestock, Poultry and Dairy.
Charts
IDXX's 12-month performance chart shows the stock appreciating 70% versus an 18% gain for the stock market.
The stock has moved higher after its past thee earnings reports. It reports any day now.
IDEXX insiders have been buyers recently using stock options ranging in price from $26 to $79. Some insiders were buyers and the price was not disclosed.
They were sellers in November of last year around $120.
IDXX's long-term chart shows the stock peaking at $32.33 in 2007. The stock then fell back to $17.59 in 2008 due to the bear market.
Since then, IDXX has been a star performer climbing to an all-time high of $122.33 Tuesday, a sevenfold move.
IDXX's daily chart shows the stock climbing from $90 in July to a peak of $122 in December.
The stock then formed a tight flat base above its rising 50-day moving average line.
The stock just edges out of its base.
A key factor will be how the stock responds to its upcoming earnings report.
IDXX's CCI momentum indicator is modestly bullish.
Earnings Outlook
This year, analysts are forecasting a 20% increase in net to $2.84 a share from the anticipated $2.37 for 2016.
The stock sells with a price-earnings ratio of 42 based on 2017 anticipated net. That is high. So, the stock is best for a growth investor.
For the soon to be reported 2016 net, analysts look for a 12% rise to $2.37 a share from the $2.11 a year ago.
Net for the fourth quarter ending in December should be up 6% to 51 cents a share from 48 cents the year before.
TTD sees good chances for an upside surprise. The company topped the consensus for the past four quarters by 3 cents a share, 18 cents, 5 cents and 4 cents.
Profits for the first quarter should be up 18% to 60 cents a share from 51 cents the year before.
Strategy Opinion: TTD is targeting IDXX for a move to $140 within the next few months. A protective stop can be placed near $117.
TTD rates IDXX a good intermediate-term play providing earnings meet expectations.
Suitability: Aggressive Bulls.
TTD's special research of IDXX Stock's Prior Performance after a Breakout:
TTD's research shows that recently (see table) IDXX's stock has been able to score some good gains off its breakouts. Its current breakout is still in play. If it gets a boost off its earnings, the stock should work well.
Stock's Prior Performance After A Breakout
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Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
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7% |
11/17/2016 | 114.27 | 122.33 | Still in play |
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12% |
8/2/2016 | 103.76 | 117.04 | 10/10/2016 |
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27% |
6/30/2016 | 91.87 | 117.04 | 10/10/2016 |
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47% |
4/1/2016 |
79.37 |
117.04 |
10/10/2016 |
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8% |
1/13/2015 | 76.78 | 83.53 |
1/23/2015 |
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13% |
1/16/2014 | 56.26 | 63.80 | 3/11/2014 |
(In actual trading, entry and exit points could vary depending on broker execution.
Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)
Stock's Long-term Chart
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Stock's Monthly Seasonal Performance Chart - Past 5 Years
Showing % Months UP and % Change
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - GKOS - ABOVE AVERAGE |
| TTD's Quality Rating of Stock -AXE - AVERAGE |
| TTD's Quality Rating of Stock -HUBB - AVERAGE |
| TTD's Quality Rating of Stock -ALLY - AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks. Nasdaq market rallies to eliminate loss and finish flat. Bears be selective.
UA, based in Baltimore, Md., makes and sells performance apparel, footwear and accessories for men, women and youth. Annual revenues: $4.7 billion. UA's stock falls sharply Tuesday cutting through key technical support. TTD sees more on the downside. 
TTD highlighted UA as a short at our midsession video show on the Web Tuesday.
So far today, UA is trading a massive 57 million shares, 22 times its average daily volume.
UA came in with net for the fourth quarter of 23 cents a share. That was 2 cents below the Street consensus estimate of 25 cents.
Several brokerage firms down graded the stock due to concerns about UA's earnings growth outlook.
The stock fell sharply in the morning and touched an intraday low of $18.52.
The stock then lifted modestly and trended mostly sideways the rest of the day.
Tape Action
UA's tape action shows the recent block trades.
The price for the blocks fell from $25.56 in the prior session to as low as $19.
A key bearish block crossed in the morning when a massive block of 920,282 shares crossed the tape at $19.
That was down sharply from the prior block at $25.09 on 78,442 shares. (duplicated)
Business
UA operates worldwide. UA's clothes provide fits to improve comfort and mobility, regulate body temperature and improve performance regardless of weather conditions.
Its footwear includes football, baseball, lacrosse, softball and soccer cleats, running, basketball and outdoor footwear.
Its accessories cover headwear, bags and gloves.
Earnings
Analysts have been forecasting a 17% increase in net this year to 68 cents a share from the 58 cents in 2016.
With the weak fourth quarter, those estimates could come down. Net for the upcoming first quarter is expected to be one cent a share, a 75% decline from the 4 cents the year before.
Charts
UA's 12-month performance chart shows the stock falling 48% the past 12 months versus a gain of 19% for the stock market. The stock worked lower the past four quarters after reporting earnings.
UA's daily chart shows the stock gapping lower with big volume. That was the same action following its prior earnings report. (see yellow highlight on chart)
The stock's CCI momentum indicator is extremely bearish.
Strategy Opinion: TTD is targeting UA for a decline to $15.30 within the next few months. A protective stop buy can be placed near $20.30.
Suitability: Aggressive Bears.
| TTD's Quality Rating of Stock - UA - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)
