Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, February 23, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, February 23, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 21, 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 - 16
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large but very selective. Stock market extended and vulnerable. Bulls be conservative and watchful.
(Put mouse on chart to Nasdaq)
Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bearish
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 - VAC - AVERAGE |
VAC, based in Orlando, Fla., operates vacation resorts and clubs. Annual revenues: $1.3 billion. VAC's stock breaks out Thursday from an 11-week, cup-and-handle base. The move carries the stock to a new all-time high. That is bullish. 
TTD highlighted VAC as a breakout at our midsession video show on the Web Thursday.
So far today, VAC is trading a heavy 1.3 million shares, six times its average daily volume of 198,000 shares.
The breakout was triggered when VAC reported fourth quarter earnings of $1.83 a share.
That topped the consensus estimate on the Street of $1.74 a share. It also topped the highest estimate by analysts of $1.78 a share. 
VAC's 10-minute chart shows the stock gapping higher in the morning and clearing its breakpoint line.
The stock raced to an intraday high of $99.13 around noon.
It then trended mostly sideways through the afternoon.
Tape Action
VAC's tape action shows the recent block trades.
One can see the price for the blocks leaping from $89.83 in the prior session to as high as $98.56 Thursday.
A key bullish block came in the morning when 10,300 shares crossed the tape at $95.22.
That was up sharply from the prior block at $89.83 on 13,922 shares.
Business
VAC develops, sells and manages vacation resorts.
It handles the vacation and destination clubs and exchange programs under the Marriott and Ritz-Carlton trademarks.
The Company generates most of its revenues from : selling vacation ownership products, managing resorts, financing consumer purchases of vacation ownership products and renting vacation resorts.
Charts
VAC's 12-month performance chart shows the stock appreciating 70% versus a gain of 22% for the stock market.
The stock worked sharply higher off its prior earnings report.
Insiders were given stock options. In many cases the price was not disclosed. However, one VAC director did buy using stock options around $8 a share last June.
Insiders were light sellers around $78 a share in July and $61 to $66 a share in March of last year.
VAC's long-term chart shows the stock coming public in late 2011 at $15.77. The stock rose steadily reaching a peak of $93.40 in 2015.
However, the stock fell back to $45.95 in early 2016. It has since turned up and now reaches a new all-time high.
VAC's daily chart shows the stock rallying from $61 back in October to a peak near $90.
It put down a tight cup-and-handle base above its 50-day moving average line.
The breakout is strong coming with a gap move, widening of the daily spread and expanding volume.
The stock's CCI momentum indicator is strongly bearish.
Earnings Outlook
This year, analysts are forecasting a modest 12% rise in net to $5.21 a share from $4.64 the year before.
The stock sells with a price-earnings ratio of 18. TTD sees that as reasonable.
Profits for the upcoming first quarter should jump 25% to $1.09 a share from 87 cents the year before.
The highest estimate is at $1.78 a share. VAC does tend to be erratic with its quarterly earnings. So, the stock should be watched closely.
Strategy Opinion: TTD is targeting VAC for a move to $115 off this breakout. A protective stop can be placed near $89.
TTD rates VAC an average breakout play for the long-term. Also, March is a very bullish month for VAC (see seasonal chart).
Suitability: Average Bulls.
TTD's special research of VAC's Prior Performance after a Breakout:
TTD's research shows that recently (see table) VAC has scored modest gains off its recent breakouts. The stock does have a tendency to spike out of its base on a breakout. The push to a new all-time high is encouraging.
The stock has moved higher after three of its past five earnings reports. Also, the stock has tended to move higher when it is able to hold above its rising 50-day moving average line. That will be important to watch.
Also,
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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2% |
7/11/2016 | 70.33 | 71.71 | 7/12/2016 |
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9% |
5/4/2015 | 84 | 91.82 | 7/13/2015 |
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9% |
1/21/2015 | 75.80 | 83.17 | 3/20/2015 |
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9% |
8/13/2014 |
58.28 |
63.41 |
9/30/2014 |
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12% |
10/11/2013 | 47.37 | 53.46 |
12/26/2013 |
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39% |
9/12/2012 | 33.54 | 46.72 | 2/11/2013 |
(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 - DOOR - AVERAGE |
| TTD's Quality Rating of Stock - ZBRA - AVERAGE |
| TTD's Quality Rating of Stock - SP - AVERAGE |
| TTD's Quality Rating of Stock - COTV - 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts. Bears be selective. Stock market still holds up trend. However, it appears to be running out of steam. Bears be alert.
GTlS, based in Garfield Heights, Ohio, makes equipment for the industrial gas, energy, and biomedical industries. Annual revenues $905 million. GTLS's stock falls sharply Thursday after reporting disappointing earnings. TTD sees more on the downside. 
TTD highlighted GTLS as a short at our midsession video show on the Web Thursday.
So far today, GTLS is trading a heavy 1.9 million shares, nine times its average daily volume of 224,000 shares.
The company reported a breakeven for the fourth quarter, excluding special charts.
That compares with a Street estimate of a profit of 10 cents a share.
The stock fell sharply in the morning and touched an intraday low of $33.34 in the early afternoon.
It then trended sideways into the final bell.
Tape Action
GTLS' tape action shows the recent block trades.
One can see the price for the blocks falling from $39.30 in the prior session to as low as $33.79.
A key bearish trade came late on Wednesday when a block of 5,000 shares crossed the tape at $38.51.
That was down from the prior block trade at $39.30 on 15,504 shares.
In the afternoon, a block of 200,500 shares crossed the tape at $33.87.
That was up from the prior trade at $33.87 on 100 shares.
Business
GTLS's systems are used for low-temperature and cryogenic applications. It operates through three areas: Energy & Chemicals, Distribution & Storage and BioMedical.
The company's products include vacuum insulated containment vessels, heat exchangers, cold boxes and other cryogenic components and equipment for respiratory therapy.
Earnings
This year, analysts are forecasting a 44% drop in earnings to 71 cents a share from $1.25 in 2016.
Net for the upcoming first quarter is expected to be 3 cents a share compared with a loss of 8 cents the year before.
Charts
GTLS's daily chart shows the stock advancing strongly from $27.50 in November to around $41 by December. The stock put down a good looking cup-and-handle base. However, Thursday it breaks apart with the gap drop on big volume.
The stock's CCI momentum indicator is strongly bearish.
GTLS's 12-month performance chart shows the stock appreciating 102% versus a 24% gain for the stock market.
Insiders have been getting stock options in small amounts. The price was not disclosed. They have not exercised many of them. They have done very little selling.
Strategy Opinion: TTD is targeting GTLS for a decline to $28 within the next few months, or sooner. A protective stop buy can be placed near $36.
Suitability: Trading-minded Bears.
| TTD's Quality Rating of Stock - GTLS - 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.)
