Ticker Tape Digest

Thursday - March 15, 2018

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 Accumulation 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.

Thursday - March 15, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  5

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side - Small list of breakouts, but some interesting plays for aggressive bulls.

Stock market  -  Major averages bullish in all time sectors, except for the daily Dow.  Bulls be selective. Volatility has declined and some market averages look to be in consolidation patterns.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Thursday

(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

Covenant Transportation Group (CVTI) - 32.05, up 5.13 - Breakpoint 30.27

Profits to Surge, TTD Targets 39 

  CVTI, based in Chattanooga, Ten., is a long haul trucking companies. Annual revenues: $705 million . CVTI's stock breaks out powerfully from a flat base Thursday to reach a three-year high. The move was triggered by a strong earnings forecast.

  TTD highlighted CVTI as a breakout at our midsession video show on the Web Thursday.

  So far today, CVTI is trading a heavy 938,647 shares, six times its average daily volume of 148,000 shares.

  Although CVTI has been trading in a range the past several months, the stock has a beta of 1.64 versus a 1.00 for the stock market. That means CVTI tends to be more volatile than the stock market.

  CVTI said earnings for the first quarter will top its expectations. The firm is forecasting net of 17 cents to 23 cents a share.

  That compares with a breakeven the year before.

  CVTI's stock drove higher in the morning clearing its breakpoint line.

  The stock reached an intraday high of $32.38.

   It then backed off slightly and trended sideways the rest of the day. It closed near its high for the day. That is bullish.

   Tape Action

  CVTI's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $26.92 in the prior session to as high as $32.05.

  A key bullish trade came in the morning when a block of 9,626 shares (duplicated) crossed the tape at $29.04.

  That was up from the prior block trade at $26.92 on 4,793 shares.

  Business

  CVTI provides long haul freight transportation, primarily using two-person driver teams in transcontinental lanes.

 The company also provides refrigerated, dedicated, cross-border, regional and brokerage services.

The truckload segment includes the operations of Covenant Transport, Inc., its flagship operation, which provides expedited long haul, dedicated, temperature-controlled services.   

Charts

  CVTI's 12-month performance chart shows the stock appreciating 64% versus an 18% gain for the stock market.

  Insiders were recent sellers at $28 to $30 a share. Insiders have received stock options but have not used them yet.

  CVTI's long-term chart shows the stock making a bottom at $3 back in 2012. The stock then surged to an all-time high of $36.82 by 2015.

  The stock then fell back to the teens and formed a long-term consolidation. It has since pushed higher. Thursday, it makes a 3-year high.   

  CVTI's daily chart shows the stock forming a base with upside resistance at $30.27.

  Thursday, the stock gaps higher with big volume in the upbeat earnings forecast.

  The volume expands showing good overall buying interest.

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

   Earnings Outlook:

  The strong first quarter projected at 17 cents to 23 cents a share tops the highest estimate on the Street of 8 cents a share.

  Currently, two analysts follow the stock.

  Looking out to the second quarter, analysts predict a 200% surge in net to 24 cents a share from 8 cents the year before.

  Overall, net for the year was projected at a 100% gain to $1.68 a share from the 84 cents the year before. That forecast probably will be boosted.

  Going out to 2019, the Street forecasts a 19% gain in net to $2 a share from the anticipated $1.68 a share for this year.   

Strategy Opinion:  TTD is targeting CVTI for a move to $39 within the next few months, or sooner. A protective stop can be placed near $28 giving it some room.    

Intermediate-Term Rating: Average.

Suitability: Average Bulls.

                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Bullish - CVTI has scored some good gains off its recent breakouts.

Probability - Earnings Response - Extremely Bullish - CVTI rose 8 times after the past 10 earnings reports when there was a significant change.

Probability:  Seasonal Success - Neutral.  CVTI rose an average of 6.5% in March but declined an average of 6.2% in April the past several years.

           Stock's Prior Performance After A Breakout

(In actual trading, entry and exit points could vary depending on broker execution.

Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)

  Stock's Long-term Chart

   Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   Stock's Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

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 - 18

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side - Large list of shorts Thursday with many energy stocks breaking below key support. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Appian Corp. (APPN) - 25.96, down 1.89

Loss Projected for This Year, TTD Sees Decline to 20

   APPN, based in Reston, Va., provides a software system for computer programs. Annual revenues: $176 million. APPN's stock falls sharply Thursday and undercuts key technical support. TTD sees more on the downside.

  So far today, APPN is trading 766,955 shares, about double its average daily volume of 389,000 shares.

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

  APPN's stock fell sharply in the morning and undercut key technical support at $26.90.

  The stock dropped to an intraday low of $24.94

  APPN then lifted back to around $26 and trended mostly sideways the rest of the day.

   Tape Action

  APPN's tape action shows the recent block trades.

  One can see the price for the blocks falling from $27.85 in the prior session to as low as $25.79.

  A key bearish trade came in the morning when a block of 13,717 shares (duplicated) crossed the tape at $27.55.

  That was down from the prior block late on Wednesday at $27.85 on 3,447 shares.

  Business

   APPN provides a low-code software development platform as a service that enables firm's  to develop applications.

 Through APPN's platform, company's can design, build and implement, enterprise-grade custom applications. The  platform automates the creation of forms, data flows, records, reports and other software elements.

 Earnings:

  This year, analysts are forecasting a loss of 63 cents a share compared with a loss of 30 cents the year before.

  The Street is predicting a loss of 18 cents a share for the first quarter and a loss of 17 cents a share in the second quarter.   

Charts:   

  APPN's daily chart shows the stock climbing sharply from $20 in December to a peak at $43.36 by January.

  The stock then pulled back to the 20s and now cuts below key support with a big pick up in volume.

  APPN's 12-month performance chart shows the stock up 75% versus a 16% gain for the stock market. However, APPN has given up 90% of its gain the past three months.

Strategy Opinion: TTD is targeting APPN for a decline to $20 within the next few months, or sooner. A protective stop buy can be placed near $27.50.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Neutral.  APPN rose 2 times after the past 4 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Bearish.  APPN declined an average of 4% in March this year.

   Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   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. - 2018

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show 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.

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 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD

end of day print report covering breakout stocks and shorts.

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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.)