Daily - Go to TTD's Tape of  Stock Charts - Tuesday, March 29

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Tuesday, March 29

Ticker Tape Digest

Tuesday - March 29, 2011

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.

 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 -  AVERAGE

Stocks Screened - 8,300

Bull side - Smaller number of breakouts as stock market closes sharply higher. The market has rallied back to its original trading range. Bulls be selective and consider averaging into a position. Earnings and annual meetings coming up. So, there will be a lot of news that will move stocks. (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday, March 29

(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 )  

(See Top Performing Breakout Stocks for 2011 - Updated March 25)

Today's Featured TTD Breakout Stock

Lululemon Athletica Inc. (LULU) - 88.81, up 3.54 - Breakpoint 85.11

 Hits New High, Net to Leap 30% This Fiscal Year, TTD Targets 110

  LULU, based in Canada, makes and sells athletic apparel primarily in North America. Annual revenues: $712 million. LULU's stock breaks out today from a seven-week flat base. Ironically, the stock's prior breakout was from a 7-week flat base too. That was back in early February. Today's breakout was triggered by LULU voting a 2-for-1 stock split.

  So far today, LULU is trading 5.9 million shares, double its normal daily volume of 2.4 million shares.

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

LULU's 10 minute chart shows the stock breaking out in the morning on strong volume. The stock then edged higher later in the morning, rested during midsession, and then came on again in the afternoon.

  The stock's tape action shows good accumulation with a mild dose of institutional profit taking.

  TTD's clip of the big blocks shows the price rising from $83 to a peak of $88.85.  

  A key bullish big block came in the morning when 44,695 shares (duplicated) crossed the tape in the morning at $87.08. That was up sharply from the prior big block at $85.25. The tape action showed good accumulation off the stock split news.

 LULU's yoga-inspired apparel is marketed under the lululemon athletica brand name. The company offers a line of apparel and fitness pants, shorts, tops and jackets designed for athletic pursuits, such as yoga, running and general fitness.

 It sells through 124 stores in Canada and the United States. It has 45 stores in Canada, 70 in the United States and nine franchise stores in Australia. LULU's long-term chart shows the stock coming public in 2007 and trading at 30.

 LULU's 12- month performance chart shows the stock appreciating 120% compared with a 17% gain for the S&P 500 index.

 LULU's long term chart shows the stock coming public and trading around 30 in 2007. The stock advanced to a peak of 60 that year. However, it was pulled lower during the bear market falling to 4. Unbelievable! It has since made a sensational comeback. It is now making a new high and has made a twentyfold move. .

 LULU's daily chat shows the stock climbing from 35 in August to a peak of  85 in February. The stock formed a flat base above its rising 50-day moving average line.

  It rose sharply on Monday and today clears the base.

  The stock's TTD momentum indicator (top of chart) is bullish.

  The accumulation - distribution line (bottom of chart) has broken out to the upside. It confirms the price breakout.

  Net for the upcoming fiscal first quarter ending April 30 is expected to jump 40% to 36 cents a share from 27 cents a year ago. The highest estimate on the Street is at 41 cents a share.

  TTD sees good chances for an upside surprise. The past four quarters, LULU has topped the consensus Street estimate by 6 to 11 cents a share.

  Net for the fiscal year ending in fiscal 2012 should climb 30% to $2.04 a share from $1.57 a year ago. The stock sells with a price-earnings ratio of  43.

  Net for the fiscal year ending January of 203 is projected to rise 23% to $2.51 a share from the anticipated $2.04 a share for fiscal 2012.

  Strategy Opinion: LULU is still hot. TTD is targeting the stock for a move to 110 within the next few months or sooner. A protective stop can be placed near 84. TTD rates LULU an average intermediate-term play due to its high valuation.

  Sponsorship: Very Good. The largest fund holder is Fidelity Growth Company Fund with a big 13% stake. The 4-star rated fund has held its position steady. The largest fund buyer recently was 4-star rated Morgan Stanley Inst. Mid Cap Growth Fund which purchased 1.2 million shares. LULU has 51.8 million shares outstanding.

  Insider Activity:  Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at $76.01. Right now, 18 analysts follow the stock, 6 have a buy, up from 5 three months ago.

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks