Daily - Go to TTD's Tape of Stock Charts - Thursday, February 23 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, February 21 |
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.
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 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 - 9
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Modes number of breakouts, but some very good looking plays. Bulls be venturesome. Stock market continues to push higher with momentum remaining strong.
(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
TTD's Quality Rating of Stock - SXCI - ABOVE AVERAGE |
SXCI, based in Lisle, Ill., provides pharmacy benefits management services and healthcare IT solutions. Annual revenues: $4.1 billion. SXCI's stock breaks out today from a six-week flat base. The push higher came after the company reported strong earnings for the fourth quarter. TTD highlighted SXCI earlier this week as a potential breakout and suggested accumulation. .
So far today, SXCI is trading a heavy 1.1 million shares, triple its average daily volume is 357,000 shares.
The stock drover higher in the morning and hit an intraday peak of 68.74 in the morning.
The stock then trended sideways the rest of the session holding the bulk of its gain.
SXCI reported fourth quarter net jumped to 84 cents a share from 28 cents a year ago. The 84 cents topped the highest estimate on the Street of 50 cents a share.
The stock responded bullishly to the news.
TTD's clip of the tape shows the recent big block trades.
One can see the price of the blocks rising from $63.35 to a peak of $68.39.
A key bullish trade came in the morning when a block of 40,000 shares crossed the tape at $66.71. That was up sharply from the prior block trade at $65.91.
The size of the block indicates aggressive institutional buying.
SXCI provides pharmacy benefits management services and healthcare IT solutions to the healthcare benefits management industry.
The company's product combine software, application service provider processing services and professional services, designed for large firms.
SXCI services the drug supply chain, such as Federal, provincial, and, state and local governments, pharmacy benefit managers, managed care organizations, retail pharmacy chains and other healthcare companies.
SXCI's 12-month performance chart shows the stock appreciating 44% versus a 5% for the S&P 500 index.
SXCI's long-term chart shows the stock soaring from $2.40 back in 2005 to a peak of $15 in 2007. the stock then pulled back to 8 during the bear market. However, the past three years the stock has soared. It peaked in mid-2011 at $66, but then slipped back and has rallied again. On a monthly chart, SXCI has formed a cup-and-handle base. The push to a new high could bring in buying on Friday.
SXCI's daily chart shows the stock trending sideways the past several weeks in a well formed base between 60 and 65.
The stock had a strong run up from 40 back in October to 65. The basing work was down above the rising 50-day moving average line which is bullish.
The TTD momentum indicator (top of chart) is now strongly bullish.
The accumulation - distribution line (bottom of chart) is picking up but still lags the performance of the stock.
SXCI is poised to continue to show strong earnings.
For 2012, earnings are projected to increase 42% to $2.28 a share from the 2011 results.
Net for the first quarter is expected to be up 45% to 48 cents a share from 33 cents a year ago. The highest estimate on the Street is at 56 cents a share. TTD sees good chances for an upside earnings surprise.
The company recently won a contract from Blue shield of Rhode Island.
Strategy Opinion: TTD is targeting SXCI for a move to 80 within the next few months, or sooner.
A protective stop can be placed near 63.
TTD rates SXCI an excellent intermediate-term play provided earnings continue to meet expectations.
Sponsorship: Excellent. The four largest fund holders are all rated 5-star. The largest fund holder is T. Rowe Price Mid-Cap Growth Fund with a 4% stake. It was a recent buyer of 450,000 shares. SXCI has 62.4 million shares outstanding. Institutions hold 96% of the stock.
Insider Activity: Slightly Bearish. Insiders have done light selling in recent months. They have done no buying except with options that are priced from $4.99 to $53.18. Currently, 20 analysts follow the stock, 14 have a buy, down from 16 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating SXC Health Solutions Corp. - (SXCI) |
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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - GTLS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - KOG - ABOVE AVERAGE |
TTD's Quality Rating of Stock - IBM - AVERAGE |
TTD's Quality Rating of Stock - THI - 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today. Stock market continues to push higher. Bears remain watchful and conservative. TTD's short from Wednesday was Webmed (WBMD) at 26.08. The stock has declined to 25.21 and is working well for bears.
AWAY, based in Austin, Tex., provides an online marketplace for vacation rentals. Annual revenues: $230 million. AWAY's stock gaps lower today undercutting near-term technical support. The drop was triggered when the company came in with lower than expected results for the quarter. So far today, AWAY is trading a heavy 3.9 million shares, 13 times its normal daily volume of 305,000 shares. TTD sees more on the downside.
TTD highlighted AWAY as a short at our midsession video show on the Web Thursday.
The company reported a breakeven for the fourth quarter compared with a loss 27 cents a share a year ago. The Street was expecting a profit of 5 cents a share. So, results were not up to expectations.
AWAY's stock headed lower in the morning. It touched an intraday low of 21.23. The stock then staged a rally in the afternoon to cut into its deficit.
AWAY's tape action shows the recent big block trades.
One can see a bearish block crossing the tape when 35,000 shares crossed at $23.50. That was down sharply from the prior block at $27. The tape indicated heavy institutional distribution.
AWAY offers apartments, castles, condos, estates, hotels, homes, studios, town homes, and villas. It publishes detailed property listings, including photographs, descriptions, location, pricing, availability, and contact information.
It also sells complementary products, such as travel guarantees and property management software and services.
This year, the Street has been forecasting a profit of 37 cents a share. However, that may be lowered.
AWAY's daily chart shows the stock trending lower from 45 to 20 in December. The stock staged a modest rally and then trended sideways. However, today it gaps lower renewing the down trend. The news appears to have come as a surprise.
Strategy Opinion: TTD is targeting AWAY for a decline to 18 within the next few months, or sooner. A protective stop buy can be placed near 23.80.
TTD's Quality Rating of Stock -AWAY - BELOW 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.)