Aggressive Investors Bullish - Go To TTD Pre-Market Opening Breakout Watch List - Monday, March 1
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Aggressive Investors Bullish - Go To TTD Pre-Market Opening Breakout Watch List - Monday, March 1 |
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Aggressive Investor Bullish- Go To TTD Quick Trade Setups (win rate 70%) - Monday, March 1 |
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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" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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.
Stocks Screened - 8,200
Bull side - Wow! A big number of breakouts today with several top performers moving. Bulls be aggressive. The market action would suggests that big money is moving into stocks. However, the market averages give a mixed look.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
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TTD's Quality Rating of Stock - ALXN - ABOVE AVERAGE |
ALXN, based in Chesire, CT, produces therapeutic products to treat life-threatening diseases such as cancer and autoimmune disorders. Annual revenues; $386 million. ALXN's stock drives strongly through significant upside resistance today to breakout from a six-week flat base. So far today, ALXN is trading 545,885 shares. Its average daily volume is 691,000 shares. 
TTD highlighted ALXN as a breakout at our midsession show on the web Monday.
ALXN's 5-minute chart shows the breakout coming with a quick move higher in the morning. ALXN was able to continue to work higher during the day.
The volume so far today is light for a breakout. So, it will be important to watch for ALXN to follow through on the breakout.
The stock has had a hard time clearing its base. It has a low beta of 0.59 which means it is about half as volatile as the stock market, whose beta is 1.0.
ALXN's tape action shows the recent big blocks.
One can see the price for the blocks climbing from $48.94 to a peak of $50.93. The key trade today was a big block of 6,700 shares that traded at $50.92. That was up sharply from the prior block trade that went off at $49.47.
ALXN develops therapeutic products to treat patients suffering from hematologic, kidney and neurologic diseases, transplant rejection, cancer and autoimmune disorders.
Its key product is Soliris. It is a therapy approved to treat patients with paroxysmal nocturnal hemoglobinuria (PNH).
In April 2009 and August 2009, the FDA and the European Commission granted Soliris orphan drug designation for the treatment of patients with atypical Hemolytic Uremic Syndrome.
In December 2009, its Rhode Island manufacturing facility received regulatory approval from the E.C. for the production of Soliris
ALXN's 9-month performance chart shows the stock appreciating 35% compared with an 18% rise in the S&P 500 index.
ALXN's long-term chart shows the stock breaking out from a cup-and-handle base. That is impressive in that the set up is ideal for a long-term pay. 
ALXN's daily chart shows the breakout on a widening of the daily spread (range from high to low). That shows ease of price movement. The volume is light. So, a follow through in the next few days will be important.
ALXN's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is now in a nice up trend after having been dull and weak late last year.
TTD sees the key driver for ALXN being a potential acceleration in annual earnings growth.
This year analysts forecast a 29% increase in net to $1.14 a share from 88 cents a share a year ago. Going out to 2011, they look for profit growth to accelerate to 63% with net hitting $1.85 a share.
The stock sells with a price-earnings ratio of 44 based on 2010 net.
For the upcoming first quarter, the Street looks for a 48% surge in net to 24 cents a share from 16 cents a year ago. The highest estimate on the Street is at 32 cents a share. That would indicate some analysts see potential for a big quarter.
ALXN has tended to slightly exceed consensus estimates for the quarter. This year, ALXN is forecasting revenues of $505 to $520 million. Goldman Sachs analyst covering ALXN considers the companies 2010 forecast as conservative. ALXN plans to bring its top product Soliris to market in Japan in 2010.
Strategy Opinion: ALXN's breakout is good but a follow through will be need to show demand for the stock. The breakout has come on light volume. TTD is targeting ALXN for a move to 62 within the next few months. A protective stop can be placed near 48. TTD rates ALXN a good intermediate-term play provided earnings meet expectations.
Sponsorship: Good. The largest fund holder is Fidelity Growth Company Fund with a big 8.4% stake. The 3-star rated fund has held its position steady. A key buyer recently was 4-star rated T. Rowe Price Health Sciences Fund which picked up 65,000 shares. ALXN has 89 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers using stock options lately. They turned around and sold. The latest selling was at $50. Currently, 18 analysts follow the stock, 12 have a buy, down from 14 three months ago.
Stock Performance Chart for 9 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Alexion Pharmaceuticals Inc. - (ALXN) |
| 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 | 12 | 0 | 2 |
(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)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - ISRG - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - PCLN - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - JAS - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - DTV - ABOVE AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To 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 - 7
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Modest number of breakdown stocks today, but some interesting plays for bears. Bears be venturesome.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
GAME, based in China, is an online game company. Annual revenues: $648 million. GAME's stock gaps lower today on big volume after the company made a disappointing forecast for the first quarter. It said revenues for the first quarter will be down 10% to 15% compared with the prior quarter. So far today, GAME is trading a heavy 13.7 million shares, nine times its average daily volume of 1.4 million shares. 
GAME's stock fell at the opening and hit a low of 6.90 late in the morning. The stock then trended sideways unable to rally.
TTD's clip of the tape shows the recent big block trades in GAME. One can see the price of the blocks declining from $8.50 to $6.97. That shows heavy institutional selling pressure. A key trade came in the morning near the opening when a big block of 100,500 shares crossed at $7.06. That was down sharply from the prior block trade at $8.05.
The company said the lower revenues would reflect costs for a new expansion pack for Mir2, the company's major online game. The stock was downgraded by Citigroup.
The company’s online game business includes developing and operating multi-player online role-playing games (MMORPGs) and advanced casual games.
GAME operates 18 MMORPGs and 11 advanced casual games. In July 2009, the company acquired Chengdu Simo Technology Co., Ltd., an online game company.
This year analysts have been estimating an 18% increase in net to 88 cents a share from 75 cents a year ago. The 2010 consensus estimate may come down.
GAME's chart shows the working lower. Today the big drop comes with heavy volume. That signals institutional flight from the stock.
Strategy Opinion: TTD is targeting GAME for a decline to 4.80 within the next few months. A protective stop can be placed near 8. TTD rates GAME a trading short.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
