Daily - Go to TTD's Tape of  Stock Charts - Tuesday. March 4, 2014

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -Tuesday, March 4, 2014

Ticker Tape Digest

Tuesday - March 4, 2014

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.

 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 - 22

Overall Quality of Breakouts - AVERAGE

Stocks Screened - 8,300

Bull side - Breakout list large as stock market rebounds. Bulls be selective.  Stock market resumes up trend.  

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

    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

Timely Breakout Stocks From Tape Action - Tuesday

(See Top Performing Breakout Stocks for 2011- 2012- 2013)

(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)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Chipotle Mexican Grill Inc. (CMG) - 582.45, up 27.85 - Breakpoint 569.71

Net to Climb 24% This Year, TTD Targets 660

   CMG, based in Denver, operates Mexican restaurants. Annual revenues: $3.2 billion. CMG's stock breaks out today from a six-week flat base. The move carries the stock, a leader, to a new all-time high. So far today, CMG is trading a heavy 1 million shares, double its average daily volume of 432,000 shares.

  TTD highlighted CMG as a breakout at our midsession video show on the Web Tuesday.

  CMG's stock rose aggressively through the morning and into the early afternoon. It cut across its breakpoint line in the morning. The stock then trended mostly sideways in the afternoon.

 It looks to close on its high for the day which is bullish giving it good chances for a follow through move on Wednesday.

    CMG's tape action shows the recent block trades.

   One can see the price for the blocks climbing from $554.60 late on Monday to as high as $584.83 on Tuesday.

  A key bullish trade came in the morning when a block of 6,087 shares crossed the tape at 561.27.

  That was up from the prior block at $554.50.

    CMG offers a menu of burritos, tacos, burrito bols and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere.

  The company has 1,572 restaurants in the U.S and seven in Canada, six in England, two in France and one in Germany.

  CMG's 12-month performance chart shows the stock appreciating 80% versus a 21% gain for the S&P 500 index.

  One can see on the performance chart how the stock surged after its last two earnings reports.

  CMG's long-term chart shows the stock coming public in 2006 and trading around 49. The stock climbed to a peak of 155 in late 2007 the top in that bull market.

  The stock then fell back in the bear market to 36. However, after that CMG has soar 585.96, a new high. The push to a new high could bring in more buying on Wednesday  

  CMG's daily chart shows the stock climbing from 397 in August to a peak near 569 by late January. The move in late January was a gap move higher.

  However, the stock did not follow through, but instead put down another flat base - a base on top of a base.

 The breakout today looks good coming with expanding volume.

  CMG's TTD momentum indicator (top of chart) is in an up trend and is bullish.

  The accumulation - distribution line (bottom of chart) is trending lower showing a divergence. That indicates weak buying in the base.

  So, investors need to be very watchful of the stock.

  This year, analysts are forecasting a 24% gain in CMG's net to $12.90 a share from $10.37 a year ago.

  The stock sells with a price-earnings ratio of 45. That is high.

  Going out to 2015, the Street projects a 24% increase in net to $16 a share from the anticipated $12.90 this year.  

  For the upcoming first quarter, earnings are expected to rise 20% to $2.82 a share from $2.35 a year ago. The highest estimate on the Street is at $2.96 a share. In the prior quarter, the company topped the Street estimate by just one cent a share (See table).

  Going out to the second quarter, analysts look for an 18% gain in net to $3.32 a share from $2.82 the year before.

  Strategy Opinion: TTD is targeting CMG for a move to 660 after this breakout. TTD suggests scaling into the play. A protective stop can be placed near 560.

  TTD rates CMG an average intermediate-term play. One needs to be watch because the p/e is high. TTD also sees chances for a stock split that could boost the stock.

  Sponsorship:  Excellent. The largest fund holder is 4-star rated Fidelity Contrafund with a 5.5% stake. It has held its position steady.

  A key buyer recently was 4-star rated T. Rowe Price Growth Stock Fund which purchased 25,600 shares. It has a 3% stake.

  CMG has 31.2 million shares outstanding. Institutions hold 96% of the stock.

  Insider Activity: Neutral. Insiders have done very some selling in recent months. The latest was at 550. Currently, 22 analysts follow the stock, 10 have a buy, down from 11 three months ago,

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 - 1

Stocks Screened - 8,300

Long-Term Environment for bears: Neutral.

Bear Side - Only one short today. Stock market snaps back with a rally. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

McDermott International Inc. (MDR) - 7.41, down 0.69

Reports Loss for the Quarter, TTD Sees Drop to 5

 MDR, based in Houston, Tex., builds steam-generating equipment. Annual revenues: $2.7 billion. MDR's stock falls sharply today after the company reported a loss for the fourth quarter of 80 cents a share. That surprised the Street which had been projecting a profit of 16 cents a share.

  TTD highlighted MDR as a short at our midsession video show on the Web.

  MDR's stock fell sharply in the morning. It hit an intraday low of 7.25. The stock then trended sideways unable to rally even though the general stock market was doing well.

  MDR's volume swelled to 29.3 million shares, seven times its average daily volume of 3.7 million shares.

  The stock's tape action shows the recent block trades.

  One can see the price for the blocks declining from $7.60 in the morning to as low as $7.31.

  A key bearish trade came in the morning when a block of 50,000 shares crossed the tape at $7.50. That was down from the prior block at $7.60.

  The tape showed heavy institutional selling pressure.

 MDR makes steam-generating equipment, environmental equipment, and products for the U.S. government.

 The company also provide engineering and construction services for industrial, utility, and hydrocarbon processing facilities, and to the offshore oil and natural gas industry.

This year, analysts are forecasting a profit of 39 cents a share compared with a loss of $1.53 for 2013. However, the company has disappointed with earnings the past four quarters.

MDR's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line (bottom of chart) has turned down indicating clear selling pressure.

   Strategy Opinion: TTD is targeting MDR for a decline to 5 within the next few months. A protective stop buy can be placed near 8.50.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2013

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.)