Daily - Go to TTD's Chart scroller of  Breakout and Leading Stocks - Friday, March 4, 2016

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Friday, March 4, 2016

Ticker Tape Digest

Friday - March 4, 2016

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 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 - 5

Overall Quality of Breakouts - AVERAGE

Stocks Screened - 8,300

Bull side - Breakout list small and very selective. Bulls be conservative. Stock market holds near-term up trend.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls: Neutral

    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 - Friday

(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

MA Com Technology Solutions (MTSI) - 41.76, up 1.61 - Breakpoint 41.41

Net to Jump 44% in Fiscal 2016 (Sept.), TTD Targets 50

  MTSI, based in Lowell, Ma., makes  semiconductors and modules in the U.S., China and Taiwan. Annual revenues: $440 million. MTSI's stock moves sharply higher Friday and breaks out from a two-month flat base. The move carries the stock close to a new high.

  So far today, MTSI is trading 1.2 million shares, double its average daily volume of 633,000 shares.

 The stock rose steadily in the morning and cut across its breakpoint line. (See 10-minute chart)

  The stock then trended sideways the rest of the day holding above its breakpoint line.

  The stock did reach an intraday high of $42.10 with the breakpoint being at $41.76

  MTSI's tape action shows the recent block trades.

  One can see the price for the blocks climbing from 40.15 in the prior session to as high as $41.77.

  A key bullish trade came in the morning when a block of 5,200 shares crossed the tape at $40.53.

  That was up from the prior block trade at $40.15 on 16,774 shares.

  Then near the close a massive block of  20,177 shares crossed the tape at $41.76 (duplicated).

  That was up from the prior block at $41.68 on 11,300 shares.

  The tape action showed aggressive institutional buying.

 The company sells  3,500 standard and custom devices.

  They include integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems across approximately 40 product lines.

  Its semiconductor products are electronic components that are used in electronic systems, such as point-to-point wireless backhaul radios, high density networks, active antenna arrays, radars, magnetic resonance imaging systems, and unmanned aerial vehicles.

  MTSI's 12-month performance chart shows the stock appreciating 22% versus a 5% decline in the stock market.

  MTSI's long-term chart shows the stock coming back in 2012 at 20.70. The stock fell back to 10.16 later in the year.

  It then trended mostly sideways in 2013. The in 2014 the stock broke out and has since climbed to an all-time peak of 43.19 set late last year.

  MTSI's daily chart shows the stock climbing from 27 back in October to a peak near 43 by late December.

  The stock then pulled back and formed a base between 35 and 40.

  The stock breaks out Friday with a good pick up in volume.

  MTSI's CCI momentum indicator (bottom of chart) is strongly bullish.

  The accumulation - distribution line has hit a new high. That shows good underlying buying.

  This fiscal year ending in September analysts are forecasting a 44% jump in net to $1.27 a share from 88 cents a year ago.

  The stock sells with a price-earnings ratio of  32. TTD sees that as okay given the strong earnings outlook.

  Going out to fiscal 2017 ending in September, the Street predicts a 57% leap in net to $1.99 a share from the anticipated $1.27 this fiscal year.

  Net for the upcoming fiscal second quarter is expected to drop 28% to 28 cents a share from 39 cents the year before.

  The highest estimate on the Street is at 31 cents a share. MTSI has been erratic with its quarterly earnings. So, the stock needs to be watched closely.

  For the fiscal third quarter ending in June, analysts predict an 11% rise in net to 34 cents a share from 31 cents the year before.

  Strategy Opinion: TTD is targeting MTSI for a move to 50 off this breakout. The weak quarterly net appears to have been discounted into the price of the stock. However, one needs to be watchful. A protective stop can be placed near 39 which is tight. ]

  TTD rates MTSI a good intermediate-term play provided annual earnings meet expectations.

  Sponsorship: Average. The largest fund buyer recently was the 2-star rated Columbia Acorn Z Fund which purchased 213,261 shares. It is the second largest holder with a 1.5% stake.

 The largest fund holder is the 3-star rated Franklin Small Cap Growth A Fund with a 2.2% stake. It was a recent seller of 135,600 shares.

  MTSI has 53 million shares outstanding. Institutions hold 67% of the stock and insiders have 30%

  Insider Activity: Neutral. Not much activity recently. Insiders were sellers last year at $37 to $38.

  Currently, 10 analysts follow the stock, and all 10 have a buy, up from 9 three months ago.

  MTSI has a book value of $7.89 a share.

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 - 3

Stocks Screened - 8,300

Long-Term Environment for bears: Neutral.

Bear Side - Small list of breakdown stocks Friday, but some interesting plays. Bulls be selective. Stock market still vulnerable to the downside.

  TTD's short from Thursday was Heritage Insurance Holdings (HRTG) at 17.40. Friday, it is trading at 16.34 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Embraer SA (ERJ) - 24.59, down 1.65

Profits Disappoint, TTD Sees Decline to 20

  ERJ, based in Brazil, makes aircraft and various aircraft systems. Annual revenues: $4.4 billion. ERJ's stock falls sharply Friday and undercuts key technical support. The company came in with disappointing earnings for the fourth quarter. TTD sees more on the downside.

  So far today, ERJ is trading a heavy 3.3 million shares, four times its average daily volume of 788,000 shares.

  The company reported net for the fourth quarter of  16 cents a share. That was well below the Street forecast of 75 cents a share.

  ERJ's stock fell sharply in the morning touching an intraday low of 23.64.

  The stock then rallied to cut its loss and then trended mostly sideways the rest of the day.

  ERJ's tape action shows the recent block trades.

  One can see the price for the blocks falling from $26.24 in the prior session to as low as $23.96.

  A key bearish trade came in the morning when a massive block of 40,719 shares crossed the tape at $23.96.

  That was down sharply from the prior block at $26.21 on 10,000 shares.

 ERJ produces commercial jets; and provides support services, primarily in the regional aviation segment, as well as operating leasing of aircraft.

Its products include ERJ 145 family of planes, the EMBRAER 170/190 family, and E-Jets E2 family of commercial aircrafts.

The executive jets  unit  offers Legacy 600 and Legacy 650 executive jets in the super midsize and large categories; Legacy 450 and Legacy 500 executive jets in the midsize and midlight categories; Phenom executive jets in the entry jet and light jet categories; and Lineage 1000, an ultra-large executive jet.

  Analysts are forecasting a 4% rise in net in the first quarter and a 16% decline in the second quarter.

  However, for all 2016, the Street is predicting a 56% jump in net to $2.32 a share from $1.49 in 2015. Those estimates could change.

 ERJ's daily chart shows the stock gapping lower in the prior session and then on Friday another gap move with big volume. The stock's accumulation - distribution line (bottom of chart) is strongly bearish.   

Strategy Opinion: TTD is targeting ERJ for a decline to 20 within the next few months. A protective stop buy can be placed near 26.

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. - 2016

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: 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.)