Go To TTD's Pre-Market Opening Breakout Watch List -Wednesday, March 12
Go To TTD's Day Trades (win rate 80% for aggressive investors) for Wednesday, March 12
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Go To TTD's Pre-Market Opening Breakout Watch List -Wednesday, March 12 |
Go To TTD's Day Trades (win rate 80% for aggressive investors) for Wednesday, March 12 |
By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily breakout and Short Selling report.
It contains Breakout Stocks and Stocks under 
Significant Accumulation.
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
TTD Quick Trade Stocks. 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 an 80% win rate.
Ticker Tape Digest's Midsession Stock Market Video Show(Posted 12:30 to 1 p.m. NYSE Time) Go to TTD Stock Market Show For - March 12Go to Shows for Latest Week: Monday
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Tuesday
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Wednesday
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Total Buy Breakouts so far today - 5
Stocks Screened - 8,200
Bull side - Only a few breakout stocks today. Bulls remain alert.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
STLD, based in Fort Wayne, Ind., operates steelmaking minimills in the Midwest and Southeast. Annual revenues: $4.4 billion. STLD breaks out from a 12-week, cup-and-handle base today and hits an all-time high. The move comes on volume of 3.1 million shares. The stock's normal daily volume is 2.1 million shares. 
The stock pointed higher early in the day. TTD's clip of the tape shows a big block of 16,546 shares trading on a big up tick to $62.87 from the prior trade at $62.75.
The action showed strong institutional buying early in the day.
TTD highlighted STLD as a breakout at our midsession show on the Web.
STLD has 4.7 million tons of production capability. It is split mainly between flat-rolled and steel bar products.
About 67% of the company's flat-rolled production consists of high-margin specialty products such as thin-gauge and galvanized steel. The company also operates a scrap substitute facility that manufactures liquid pig iron for use in the company's mills.
Tuesday, STLD
raised its first quarter earnings guidance from a range of
Wall Street had been forecasting STLD's earnings for the first quarter to be up 16% to $1.17 a share from $1.01 a year ago. The highest estimate was at $1.20 a share.
STLD should show an acceleration in quarterly earnings growth. For the second quarter, analysts are forecasting a 37% jump in net to $1.40 a share from $1.02 a year ago.
Overall, for the year, STLD's profits are expected to soar 32% to $5.31 a share from $4.02 a year ago. The stock sells with a price-earnings ratio of just 12 based on this year's projected net. TTD sees that as attractive for value investors.
TTD's daily chart shows the cup-and-handle base. It shows up better on a weekly chart. The breakout from the base is solid and comes with an expansion in volume.
The stock's TTD momentum indicator (top of the chart) is slightly bullish.
The accumulation - distribution line (bottom of chart) continues to trend higher. That shows good underlying buying in the stock.
Strategy Opinion: Steel stocks don't seem to be exciting. However, STLD has the numbers and stock performance to do well. TTD is targeting this breakout play for a move to 75 within the next few months. A protective stop can be placed near 61. The stock has the potential to do better than expected. TTD rates STLD a good intermediate-term play.
Sponsorship: Excellent. 5-star rated Hartford Growth Opportunities Fund was a recent buyer of 586,000 shares. Also, 4-star rated Calamos Growth Fund recently added 600,000 shares and Goldman Sachs Mid Cap Value Fund, 4-star rated, picked up 596,000 shares.
Insider Activity: Neutral. Insiders have been light buyers lately. Six analysts follow the stock, 3 have a buy, up from 2 three weeks ago.
| TTD's Breakout Profile
Rating Steel Dynamics Inc. (STLD) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 |
(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.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Breakout Stocks
Set a Stop Buy at 9.10 to Catch the Breakout
To Report Net Soon, TTD Sees shot at 12.50
ARST, based in Cupertino, Ca., provides technology to monitor, assess, and manage potential security threats and compliance breaches across IT infrastructures. Annual revenues: $87 million. ARST is a stock that made its debut in February. The company offered 6 million shares and certain shareholders about 800,000 shares. The stock has been acting well and holding its own even though the stock market declined in recent months. TTD sees potential for the stock to move higher and thus, we suggest accumulation. 
So far today, ARST is trading 22,196 shares. That is light given its average daily volume is 289,000 shares.
TTD spotted good tape action ARST on Tuesday when the stock market moved sharply higher. TTD's clip of ARST's tape late on Tuesday showed a block of 700 shares trading at 9, a big up tick from the prior trade at $8.83.
The action showed good buying prior to the company's earnings report. ARST will report net for the fiscal third quarter ended Jan. 31 on March 13 - Thursday. There are no Street estimates available
ARST has some 400 clients. They include firms in the aerospace, energy, healthcare and high-tech areas. It also services 20 U.S. government agencies.
TTD's daily chart of ARST shows the stock in a classic basing pattern with upside resistance around 9. The key would be a push to 9.10 or over to clear the base.
The stock's TTD momentum indicator (top of the chart) is extremely bullish. The accumulation - distribution line (bottom of chart) is trending higher and shows there is clear buying supporting the stock.
TTD's 60-minute chart (see below) shows the stock now bumping up against upside resistance.
The underwritters for the stock included Morgan Stanley and Lehman Brothers.
For the six months ended Oct. 31, ARST reported a loss of 31 cents a share compared with a loss of 32 cents a share a year ago. Revenues soared to $37.6 million for the six months from $23.1 million a year ago.
Strategy Opinion: ARST is a speculative stock in that the company has yet to show a profit. However, revenue growth is strong and the company is a fast growing sector in technology. TTD sees the stock most suitable for aggressive investors.
TTD suggests accumulation of a partial stake in ARST with further buying to be done on a move over 9.10. TTD is targeting the stock for a move to 12.50 within the next few months, or sooner. A protective stop can be placed near 8.50. TTD rates ARST an average intermediate-term play.
Sponsorship: Not available. The company has 6 million shares outstanding.
Insider Activity: Not available.
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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Modest number of breakdown stocks today. Airline issues fall sharply after broker downgrade. Group looks weak. Also, battered HMO stocks continue lower.
(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.)
KLAC, based in San Jose, Ca., makes yield-management and process-monitoring systems for the semiconductor industry. Annual revenues: $2.8 billion. KLAC's stock falls sharply today after a brokerage firm cuts its rating. The stock has been acting bearishly for months and earnings for the next two quarters will be down sharply. TTD sees good chances for more on the downside.
So far today KLAC is down about three points. Volume is running at 12.1 million shares, about triple its normal daily volume of 4.8 million shares.
The stock came under heavy institutional selling pressure early in the day. TTD's clip of the tape shows a big block of 225,000 shares crossing the tape on a significant down tick to $38.95 from the prior trade at $39.04.
KLAC's systems are used to analyze the manufacturing process at various steps in a product's development.
The firm's laser-scanning products are used for wafer qualification, process monitoring, and equipment monitoring. The company also provides systems for optical metrology and e-beam metrology.
This fiscal year ending June 30, analysts predict KLAC's earnings will drop 15% to $2.71 a share from $3.20 a year ago.
Net for the fiscal third quarter ending March 30 should drop 29% to 62 cents a share from 87 cents a year ago.
TTD's chart of KLAC shows the stock in a steady decline. It tried to form a bottom around 40. However, today it violates support and falls sharply in heavy volume. The stock's accumulation - distribution line (bottom of chart) shows that KLAC remained under selling pressure even while it tried to bottom. TTD sees KLAC as a good trading short. TTD's downside target is 30.
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.)
