Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 14 |
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.
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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 - 6
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small as stock market slides. Bulls be selective. Stock market still in a trading range with a danger of a breakdown. Bulls be cautious.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011 - Updated March 4)
TTD's Quality Rating of Stock - NEU - AVERAGE |
NEU, based in Richmond, Va., produces chemicals used for engines and machines. Annual revenues: $1.8 billion. NEU's stock drives sharply higher today on strong volume. The stock's move carries it to a new all-time high. So far today, NEU is trading 482,422 shares, six times its normal daily volume of 77,000 shares. The stock is a thin issue with 13.9 million shares outstanding.
TTD highlighted NEU as a breakout at our midsession show on the web Monday.
NEU's 10-minute chart shows the stock climbing sharply in the morning and cutting across its breakpoint line.
The stock then trended sideways the rest of the day holding the bulk of its gain.
NEU's tape action showed strong institutional buying in the morning.
A block of 9,943 shares crossed Monday morning at $145. That was up sharply from the prior block that traded at $128.75.
A second block in the morning pushed the price even higher. It was 10,000 shares crossing at $148.75.
NEU owns Afton Chemical Corporation and Ethyl Corporation.
They produce chemical additives that enhance the performance of petroleum products.
The chemical blends help to make fuels burn cleaner, engines run smoother and machines last longer.
NEU's 12-month performance chart shows the stock appreciating 38% versus a 14% gain for the S&P 500 index.
The stock has done well the past two years climbing from 46 to a peak of 146. (see TTD's long-term chart). The stock's push to a new multi-year high is bullish.
NEU's daily chart shows the stock in almost a four-month flat base. It attempted a breakout in February, but faded.
TTD set up a breakpoint zone.
Today, the stock gaps through it with big volume. The stock's TTD momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) is in a solid up trend and has broken out. That confirms there is good buying behind the stock.
NEU will show only modest earnings growth.
This year, analysts forecast a 7% rise in net to $13.42 a share from $12.52 a year ago. The stock sells with a price-earnings ratio of 10. TTD sees that as reasonable.
Looking ahead to 2012, net is expected to rise 6% to $14.16 from the anticipated $13.42 a share.
Net for the upcoming first quarter should be up 4% to $2.90 a share from $2.78 a year ago. NEU has the potential to show a modest upside surprise.
TTD sees the stock with good fundamental prospects near-term in that net for the second quarter is expected to jump 29% to $3.48 a share from $2.69 a year ago. That could be a driver to send the stock higher.
Strategy Opinion: TTD is targeting NEU for a move to 165 off this breakout. TTD suggests scaling in. We would look to take profits near our target price. We rate NEU a below average intermediate-term play because of its low earnings growth.
Sponsorship: Average. The largest fund holders are index funds.
Insider Activity: Neutral. Light buying by insider, who turned around and sold. Five analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating NewMarket Corp. - (NEU) |
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 | 9 | 0 | 5 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - SINA - AVERAGE |
TTD's Quality Rating of Stock - AIRM - AVERAGE |
TTD's Quality Rating of Stock - JTSO - BELOW AVERAGE |
TTD's Quality Rating of Stock - CBLI - BELOW 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 - 8.
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Modest number of breakdown stocks today. Uranium related issues down on concerns on Japan reactor and safety of nuclear power.
CCJ, based in Saskatoon, produces uranium and gold. Annual revenues: $2.1 billion. CCJ's stock falls sharply today in heavy trading. The decline was linked to the nuclear plant problems in Japan follow the earthquake. There is concern that nuclear power will come under more scrutiny and perhaps slow CCJ's growth. So far today, CCJ is trading 25.6 million shares, eight times its normal daily volume of 2.5 million shares.
The stock was also downgraded by a brokerage firm.
CCJ gapped lower at the opening. It worked even lower down to $28.80. The stock then lifted a bit and trended sideways.
TTD's clip of the tape shows some heavy institutional selling. In the morning, a big block of 800,774 shares crossed the tape on a big down tick to $29.05 from the prior block trade at $37.56.
That indicated an urgency to sell.
CCJ 's uranium products are used to generate electricity in nuclear power plants around the world..
The Street currently projects CCJ's net this year will increase 23% to $1.55 a share from $1.26 a year ago. Net for the first quarter is expected to rise 26%.
CCJ's stock chart shows the stock with a gap move lower on big volume. The tape action is an indication of a surprise even-driven decline.
Strategy Opinion: TTD is targeting CCJ for a decline to 27. A protective stop can be paced near 34.10
TTD's Quality Rating of Stock - ARO - CCJ AVERAGE |
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.”
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(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.)