Daily - Go to TTD's Tape of Stock Charts - Monday, February 14
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Daily - Go to TTD's Tape of Stock Charts - Monday, February 14 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - February 14 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." 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. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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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.
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.
Total Buy Breakouts so far today - 20
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakouts continue strong with good quality today. Stock market mixed. Bulls be selective as stock market is extended and volume is contracting.
(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
(Go to Top Performing Breakout Stocks for 2011 - Update February 14)
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TTD's Quality Rating of Stock -CLF - ABOVE AVERAGE |
CLF, based in Cleveland, is a mining firm producing iron ore. Annual revenues: $4.1 billion. CLF's stock breaks out today from a 5-week, cup-and-handle base. The move carries the stock to a 52-week high. So far today, CLF is trading 4.1 million shares. Its average daily volume is 3.4 million shares. Natural resource stocks have been strong.
TTD highlighted CLF as a breakout at our midsession show on the Web Monday.
CLF's 10-minute chart shows the stock driving strongly higher in the morning with big volume.
The stock peaked at $92.74 in the morning and then trended sideways just above its key breakpoint. 
CLF's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from $87.93 to a peak of $92.50. The last two blocks on the top of the list show a decline in price. That would appear to be some profit taking.
A key bullish trade took place in the morning in the third market when 8,000 shares crossed the tape at $92.38. That was up from the prior block trade at $88.15. So, there was some aggressive buying taking place.
CLF was formerly Cleveland-Cliffs Inc.
The company produces iron ore pellets in North America. It is also a supplier of direct-shipping lump and fines iron ore out of Australia, and a producer of metallurgical coal.
In North America, CLF operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and two coking coal mining complexes in West Virginia and Alabama.
Its Asia Pacific operations are comprised of two iron ore mining complexes in Western Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore, and a 45 % economic interest in a coking and thermal coal mine located in Queensland, Australia.
CLF's 12-month performance chart shows the stock appreciating 90% versus a 20% gain for the S&P 500 index.
CLF's long-term chart shows the stock soaring from 3 back in 2003 to 121 by 2008 - a sensational run up. The stock then took a dive during the bear market falling back to 11 in 2009. It has since made a strong come back and is trending higher again.
CLF's daily chart shows the stock breaking out from a small cup-and-handle base with expanding volume. The base was set up above a rising 50-day moving average line which shows the stock is in a strong up trend.
The TTD momentum indicator (top of chart) is slightly bullish
The accumulation - distribution line (bottom of chart) is in a strong up trend and compliments in a bullish way the price up trend.
Net for this year should climb 51% to $10.26 from an anticipated $6.80 in 2010. The stock sells with a price-earnings ratio of just 9 based on this year's projection. That is low.
Net for the upcoming first quarter should surge 179% to $1.93 a share from 69 cents a year ago.
The highest estimate on the Street is at $2.94 a share. So, some are looking for a big quarter. The company is benefiting from strong prices for metals.
Strategy Opinion: TTD is targeting CLF for a move to 110. A protective stop can be placed near 88. TTD rates CLF a very good intermediate-term play provided earnings remain on course.
Sponsorship: Good. There were two key funds buying the stock recently. American Century Growth Fund, 4-star rated, purchased 165,000 shares and 3-star rated Vanguard Morgan Growth Fund added 296,031 shares. CLF has 135.5 million shares outstanding.
Insider Activity: Neutral. Not much activity in recent months. Right now, 12 analysts follow the stock, 8 have a buy, down from 10 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Cliffs Natural Resources Inc. - (CLF) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - WBC - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - NOG - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - TDSC - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - VSI - ABOVE 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today as stock market churns. Bears be alert as market is extended and due for a pull back.
BBY, based in Richfield, Min., is a major retailer of electronics products and appliances. Annual revenues; $47 billion. BBY's stock breaks below key technical support today. The company is expected to show a slowing of earnings growth. So far today, volume is running at $6.9 million shares. Its average daily volume is 5.9 million shares. 
The company did announce an extension of its stock buyback program.
BBY headed lower at the opening. It continued to trend lower through the afternoon, unable to mount any significant rally.
BBY's tape action shows the recent block trades.
One can see the price for the blocks working down from $33.56 recently to $33.17.
A key bearish trade today was a big block of 250,000 shares that crossed at $33.17. That was down from the prior block trade at $33.51.
BBY operates stores under the Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and Speakeasy names.
Net for the fiscal year ending February 2011 should by up only 5% to $3.31 a share from $3.14 a year ago. For the upcoming fiscal fourth quarter, net should be up only 2% to $1.85 a share from $1.81 a year ago. In the prior quarter, BBY disappointed with net being 6 cents below the consensus. TTD sees chances for another weak quarter.
BBY's daily chart shows the stock with a gap drop back in December. The stock was not able to rally, but trended sideways. Now it is starting to weaken again.
Strategy Opinion: TTD is targeting BBY for a decline to 28. TTD sees BBY as a trading short. A protective stop buy can be placed near 34.80.
| TTD's Quality Rating of Stock - BBY - AVERAGE |
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.)
