Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, February 16, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, February 16, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 13, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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TTD doesn't publish Friday. Monday is a holiday and the stock market is closed. We resume Tuesday
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 - 17
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls be conservative. Stock market still holds up trend, but due for a consolidation.
(Put mouse on chart to Nasdaq)
Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - NTES - AVERAGE |
NTES, based in China, operates an online community network system. Annual revenues: $5 billion. NTES's stock surges higher Thursday after reporting better than expected earnings for the fourth quarter. The breakout move carries the stock to a new all-time high. 
So far today, NTES is trading a heavy 3.7 million shares, about four times its average daily volume of 958,000 shares.
TTD highlighted NTES as a breakout at our midsession video show on the Web Thursday.
The stock is a bit extended near-term, but TTD sees more on the upside.
NTES reported net for the fourth quarter of $4.30 a share. That topped the consensus estimate at $3.57 a share.
NTES's stock rose sharply in the morning and climbed steadily during the day. (see 10-minute chart).
The stock closed near its high for the day. That is very bullish.
Tape Action
NTES's tape action shows the recent block trades.
One can see the price for the blocks climbing from $261.85 in the prior session to as high as $298.73 near the close on Thursday.
A key bullish trade came in the morning when a block of 39,011 shares (duplicated) crossed the tape at $283.77.
That was up from the prior block trade the day before at $261.85 on 18,643 shares.
Near the close Thursday a block of 38,228 shares (duplicated) crossed at $298.73.
That was up from the prior block at $297.18 on 5,600 shares. That showed aggressive institutional buying.
Business
NTES operates an interactive online community in China.
It is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses.
Its online games business focuses on offering personal computer-client massively multi-player online role-playing games as well as mobile games to the Chinese market.
NetEase Websites provide Chinese language content, community and communication services.
Its online advertising handles banner advertising, direct e-mail, sponsored special events, games, contests and other activities. It offers free and fee-based premium e-mail services .
Charts
NTES's 12-month performance chart shows the stock appreciating 90% versus a 22% gain for the stock market.
The stock has moved significantly higher after three of the past four earnings reports.
The Chinese firm's insider activity is not available.
NTES's long-term chart shows the stock the stock reaching a peak of $48.50 back in 2009. The stock then edged modestly higher until 2014. Since then NTES has been in a strong up trend. The push to a new high is bullish.
NTES did go though a 4-for-1 stock split back in 2006.
NTES's daily chart shows the stock peaking in October around $272.
The stock went into a decline to $220 circled around and formed a cup-and-handle base.
The breakout is powerful coming with a gap move, big volume and favorable earnings.
The stock's CCI momentum indicator is strongly bullish.
Earnings Outlook
This year, analysts are forecasting a 17% increase in net to $15.17 from the $12.92 in 2016.
The stock sells with a price-earnings ratio of 19. TTD sees that as reasonable.
Going out to 2018, the Street is projecting a 14% rise in net to $17.28 from the anticipated $15.17 this year.
Net for the upcoming first quarter will be strong.
Analysts expect a 28% jump in profits to $3.69 a share from $2.88 the year before.
The highest estimate on the Street is at $3.79 a share.
TTD sees good chances for an upside earnings surprise. NTES beat the Street estimate the past four quarters by 38 cents a share, 2 cents, 84 cents and 57 cents. That is impressive.
Strategy Opinion: TTD is targeting NTES for a move to $350 off this breakout. A protective stop can be placed near $2.70.
TTD rates NTES a good intermediate-term play provided earnings meet expectations.
Suitability: Average Bulls.
TTD's special research of NTES's Prior Performance after a Breakout:
TTD's research shows that recently (see table) NTES has scored some big wins off its breakouts. The stock is one of the best performers. The stock has been in a solid up trend since 2013.
TTD's seasonal chart shows that February tends to be a "soft" month for NTES. However, the next three months are strong. So, there is a good up draft coming.
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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23% |
9/6/2016 | 217.50 | 269.60 | 10/25/2016 |
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50% |
6/29/2016 | 179.55 | 269.20 | 10/25/2016 |
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27% |
4/24/2015 | 118.81 | 151.27 | 6/17/2015 |
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25% |
10/21/2014 |
91.32 |
114.81 |
2/3/2015 |
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7% |
12/26/2013 | 76.79 | 82.40 |
2/3/2014 |
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16% |
8/19/2013 | 65.17 | 76.12 | 8/26/2013 |
(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 - CIR - AVERAGE |
| TTD's Quality Rating of Stock - LII - AVERAGE |
| TTD's Quality Rating of Stock - CHH - AVERAGE |
| TTD's Quality Rating of Stock - JRVR - 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 - 8
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts but some interesting plays. Stock market still holds up trend. So, bears be conservative.
TRIP, based in Needham, Ma., provides online travel services. Annual revenues: $1.5 billion. TRIP's stock falls sharply with heavy volume Thursday. The move was triggered by disappointing earnings. TTD sees more on the downside. 
So far today, TRIP is trading a heavy 12.3 million shares, six times its average daily volume of 2 million shares.
TTD highlighted TRIP as a short at our midsession video show on the Web Thursday.
TRIP reported net for the fourth quarter of just 16 cents a share.
That was down sharply from the Street consensus estimate of 31 cents a share. TRIP cited investments into new services for the earnings miss.
TRIP's stock fell sharply late in after-hours trading on Wednesday.
Then Thursday, the stock trended steadily lower through the day unable to mount a rally.
Tape Action
TRIP's tape action shows the recent block trades.
One can see the price for the blocks falling from $52.70 in the prior session to as low as $47.63 on Thursday.
A key bearish trade came late on Wednesday when a block of 37,998 shares crossed the tape at $50.59.
That was down from the prior block trade at $52.70 on 20,000 shares.
Business
TRIP has a portfolio of online travel brands. TripAdvisor is its main travel site one the Web.
The Company provides hotel room nights available and prices and bookings.
TRIP operates viator.com which provides information and services for researching and booking destination activities around the world.
Earnings
This year, analysts are forecasting a 7% increase in net to $1.05 a share. However, net for the upcoming first quarter is expected to drop 6% to 21 cents a share from 22 cents the year before.
The company has disappointed the past four quarters.
Charts
TRIP's daily chart shows the stock gapping lower in November. It then trended sideways. However, today, the stock gaps sharply lower and closes near its low its low for the session. That is bearish. The stock's CCI momentum indicator (bottom of chart) is extremely bearish.
The 12-month performance chart shows the stock declining 28% versus a 22% gain for the stock market.
Strategy Opinion: TTD is targeting TRIP for a decline to $40 within the next few months, or sooner. A protective stop buy can be placed near $49.50.
Suitability: Aggressive Bears.
| TTD's Quality Rating of Stock -TRIP - 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.)
