Daily - Go to TTD's Tape of  Stock Charts - Monday, February 7

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Monday, February 7

Ticker Tape Digest

Monday - February 7, 2011

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.

 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.

 1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays)  these 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.

  2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.

 3 - TTD's Bargain Buy Trades - Long - (Long Term long plays.  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.

  4 - 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 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 - 25

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side - Large number of breakouts today and several top rated issues clearing their bases. Stock Market continues to show good resilience to selling. Bulls be selective and  watchful since the advance is now 4 months old and now coming on contracting volume.  (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Monday - February 7, 2011

(See Top Performing Breakout Stocks for 2011)

(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Apple Inc. (AAPL) - 352.85, up 6.35 - Breakpoint 349.44

Leader Hits New High, Profits to Jump 51% in Fiscal 2011, TTD Targets 400

  AAPL, based in Cupertino, Ca., makes personal computers, mobile communication and media devices, and portable digital music players. Annual revenues: $76.3 billion. AAPL is a top performing big cap stock. .Today, AAPL breaks out from a 5-week flat base and makes a new high. The stock is a leader and one of the largest winners among big cap stocks the past five years.

 So far today, AAPL is trading 17.1 million shares.

Its average daily volume is 20 million. So, the breakout comes with "soft volume."

  The stock rose sharply in the morning and cleared its breakpoint. The stock peaked around noon and then trended sideways the rest of the day holding tight to its gain for the day.

  AAPL's clip of the tape shows the recent big block trades.

  One can see the price for the blocks climbing from $345.33 to a peak of 352.88

  A key bullish trade came in the morning when a block of 137,093 shares (duplicated) crossed the tape at $348. That was up from the prior block of 248,041 shares at $346.50.

 The stock has had a sensational run the past few years thanks to new products.

 AAPL is well know for its innovative electronics products such as the recent ipad.

 AAPL makes the Macintosh computers, iPhone, iPad, iPod, Apple TV, Xserve, software the Mac OS X and iOS operating systems and applications through the iTunes Stor..

 The company sells through its retail stores, online stores, and direct sales force and third-party cellular network carriers. It has 317 retail stores. There are 233 stores in the United States and 84 stores internationally.

  AAPL's 12-month performance chart shows the stock appreciating 80% versus a 24% gain for the S&P 500 index. That is extremely good for such a big cap stock.

  AAPL's long-term chart is a stunning example of a powerful stock. AAPL  has soared from 7 back in 2003 to 351. It remains in a strong up trend. The close on a new high could bring in more buying from the new-high crowd Tuesday.

  AAPL's daily chart shows the stock climbing from 260 to the 349 area.  

  The stock  formed a small  flat base with one shakeout to the downside.

. The basing work and the recent trend is nicely above a rising 50-day moving average line. That is bullish showing the stock remains in a strong up trend.   

  AAPL's TTD momentum indicator (top of chart) is strongly bullish.

 The accumulation - distribution line (bottom of chart) is in an overall up trend and has broken out to the upside too.

  Analysts look for AAPL to rack up a  57% increase in net for the fiscal second quarter ending March 31. They forecast $5.24 a share, up from $3.33 a year ago.

  The highest estimate is at $5.84 a share. TTD sees excellent chances for an upside surprise. The past four quarters, AAPL has topped the consensus estimate by a wide margin. The past two quarters it surpassed the consensus estimate by $1.05  a share and 59 cents a share.

  For fiscal 2011 ending in September, analysts project a 51% gain in net to $22.83 a share from $15.15 a year ago. The stock sells with a price-earnings ratio of 16. That is reasonable and attractive for value investors. Going out to 2012 ending in September, analysts look for a 14% gain in net to $26.

  The company is benefiting from the success of its many new electronics products.

  Strategy Opinion: AAPL is a big cap leader and attractive to many institutions. TTD is targeting the stock for a move to 400.  A protective stop can be placed near 340. TTD rates AAPL a very good intermediate-term pay.

  Sponsorship: Excellent. The largest fund holder is 4-star rated Fidelity Contrafund with a 1.8% stake. It was a recent buyer of 24,000. A key fund buyer recently was the 5-star rated AZ InvestEd Ivy Asset Strategy Fund which purchased 158,000 shares. AAPL has 921 million shares outstanding.

  Insider Activity: Neutral. Insiders have been buyers using stock options. They turned around and sold. The latest selling was at $339.21. Currently, 47 analysts follow the stock, 44 have a buy, down from 60 three months ago.  

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 - 4

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Small list of breakdown stocks today. Bears remain conservative as stock market remains in up trend.  TTD's short play from Friday was  O'Charleys Inc. (CHUX) -  6.53, down 0.16. Today the stock has declined to $6.28 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Sysco Corp. (SYY) - 28.04, down 1.81

Earnings Below Street Estimates, TTD Sees Drop to 23

 SYY, based in Houston, is a North American distributor of food and related products. Annual revenues: $37.9 billion. SYY's stock falls sharply today in heavy trading after the company reported disappointing earnings. SYY reported net for the fiscal second quarter ended Dec. 31 declined to 44 cents a share from 45 cents a year ago. Wall Street was looking for 46 cents a share with a low estimate at 45 cents a share. So, the results were a disappointment.

  TTD highlighted SYY as a short at our midsession video show on the Web.

  So far today, SYY is trading 15 million shares, triple its normal daily volume of 4.4 million shares.

  The stock gapped lower at the opening. It hit an intraday low of  $27.95 in the morning. It then trended sideways the rest of the day without mounting a significant rally.

 SYY provides products and related services to around 400,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.

  Sysco provides food and related products to the foodservice or food-away-from-home industry. The Company has aggregated its operating companies into a number of segments, of which only Broadline and SYGMA are the main segments. Broadline operating companies distribute a line of food products and a variety of non-food products to their customers. SYGMA operating companies distributes food products to restaurants.

  This year, analysts were forecasting a 4% rise in net for the fiscal year ending June of 2011. However, that may be cut to being flat with the $1.90 a year before. Net for the upcoming fiscal third quarter is expected to be up just 2%.

  SYY's breakdown comes with heavy volume. The news appears to have come as a surprise.

Strategy Opinion:  TTD is targeting SYY for a decline to 23 within the next few months, or sooner. TTD sees the stock as a trading short. A protective stop buy can be placed near 29.50.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

TTD columnist Leo Fasciocco has covered the stock market for over 20 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: B. J. 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.)

Copyright - Ticker Tape Digest - 2011