Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, March 30, 2017 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 20, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) 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.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
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 30, 2017
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts so far today - 12
Quality of Breakouts - Average
Stocks Screened - 12,234
Bull side - Good number of breakouts with some tech plays moving higher. Bulls can be venturesome.
Stock Market Trend
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bullish |
Dow - Bullish |
Dow - Bullish, |
Nasdaq - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
Ticker Tape Digest's
TTD's Quality Rating of Stock - WDC - ABOVE AVERAGE |
WDC, based Irvine, Ca., makes data storage devices such as hard disk drives. Annual revenues: $15.9 billion. WDC's stock breaks out Thursday from a 10-week flat base. Annual revenues $15.9 billion.
TTD highlighted WDC as a breakout at our midsession video show on the Web Thursday.
So far today, WDC is trading a heavy 6.7 million shares. Its average daily volume is 3.6 million shares.
WDC's stock drove higher in the morning clearing its breakpoint line. (See chart)
The stock drove higher through most of the day achieving an intraday high of $84.27 well above its breakpoint line.
Tape Action
WDC's tape action shows the recent block trades.
One can see the price for the blocks climbing from $80.94 in the prior session to as high as $84.17 Thursday.
A key bullish trade came late on Wednesday when a block of 101,832 shares (duplicated) crossed the tape at $81.39.
That was up sharply from the prior block trade at $80.94 on 13,500 shares.
Near the close Thursday a massive block of 543,918 shares (duplicated) crossed the tape at $83.75.
That came on a down tick from the prior trade at $83.83 on 1,600 shares.
The tape action would indicate some institutional profit taking.
Business
WDC makes data storage devices and solutions used by the information technology industry.
WDC's products are used in datacenters and solutions for individuals
They include hard disk drives, enterprise solid state drives, datacenter software and system solutions.
WDC's client devices cover removable products, hard drive content solutions and flash content solutions.. The company also makes recording heads and magnetic media.
Charts
WDC's 12-month performance chart shows the stock appreciating 80% versus a 15% gain for the stock market.
WDC insider trading shows insiders buying around $25 to $43 a share recently. They were sellers around $64 to $79 a share.
WDC's long-term chart shows the stock reaching a peak in 2009 at $47.44. The stock then trended in a trading range unil early 2013.
Then WDC broke out and ran up to its all-time high of $114.69 in late 2014.
Thes stock then went into a stiff down turn falling to around $40 last year.
The stock has now turned up and has doubled the past 10 months.
WDC's daily chart shows the stock advancing from around $60 in November to a peak near $81 by January.
The stock put down a tight flat base above its rising 50-day moving average line.
The breakout Thursday is solid coming with expanding volume and a widening of the daily spread.
The CCI momentum indicator is strongly bullish.
Earnings Outlook
This fiscal year ending in June, analysts are forecasting a 38% jump in net to $7.03 a share from $5.09 a year before.
The stock has a price-earnings ratio of 38. TTD sees that as reasonable.
Going out to fiscal 2018 ending in June the Street expects a 12% increase in net to $7.87 a share from the anticipated $7.03 this fiscal year.
Net for the next two quarters will show a significant acceleration in quarterly earnings growth. That is very bullish.
Net for the upcoming fiscal third quarter ending in March, the Street expects a 48% leap in net to $1.79 a share from $1.21 the year before.
The highest estimate is at $1.80 a share. WDC has topped the consensus estimate for the past three quarters by 33 cents a share, 13 cents and 7 cents.
Net for the fiscal fourth quarter ending in June is expected to surge 146% to $1.94 a share from the 79 cents the year before.
Strategy Opinion: TTD is targeting WDC for a move to $100 within the next few months, or sooner. A protective stop can be placed near $78.
TTD rates WDC a good intermediate-term play.
Suitability: Average Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success: Above Average. WDC has scored some great gains after a breakout recently. The stock does well when in a long-term up trend.
Probability - Move after Earnings: Below Average - WDC moved higher 6 times after 14 earnings reports.
Probability: Seasonal Performance - Average - April tends to be flat but May up sharply.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
32% |
11/18/2016 | 60.52 | 80.02 | 1/25/2017 |
45% |
9/16/2016 | 54.94 | 80.02 | 1/25/2017 |
6% |
7/12/2016 | 50.25 | 53.44 | 7/27/2016 |
10% | 6/16/2014 | 92.32 | 101.95 | 8/26/2014 |
29% | 10/16/2013 | 68.75 | 88.82 | 1/17/2014 |
(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
TTD's Quality Rating of Stock - ACLS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - GNBC - ABOVE AVERAGE |
TTD's Quality Rating of Stock - CBS - AVERAGE |
TTD's Quality Rating of Stock - JILL - 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 - 5
Stocks Screened - 12,234
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks. Bears be conservative.
WOR based in Columbus, Ohio, produces steel and other metals. Annual revenues: $2.8 billion. WOR's stock falls sharply Thursday after reporting disappointing earnings for the fiscal third quarter ending in February. TTD sees more on the downside.
TTD highlighted WOR as a short at our midsession video show on the Web Thursday.
So far today, WOR is trading a heavy 1.9 million shares, four times its average daily volume of 463,000 shares.
WOR came in with nt for the fiscal third quarter of 55 cents a share. That was below the consensus estimate on the Street of 64 cents a share.
The stock fell sharply in the morning touching $45.57.
It then trended sideways the rest of the day. Neaer the close there was some very heavy volume.
Tape Action
WOR's tape action shows the recent block trades.
One can see the price for the blocks declining from $50.63 in the prior session to as low as $45.49.
A key bearish trade came in the morning when a block of 11,622 shares crossed the tape at $47.30.
That was down from the prior block trade at $50.63 on 18,217 shares (duplicated).
Near the close Thursday, a massive block of 83,273 shares (duplicated) crossed the tape at $45.97.
That came on an up tick from the prior trade of 29,500 shares at $45.92. That may indicate some institutional bargain hunting.
Business
WOR does value-added steel processing and produces manufactured metal products.
The company's segments include steel processing, pressure cylinders and engineered cabs.
The steel processing segment buys coils of steel from integrated steel mills and mini-mills, and also toll processes steel for steel mills, end users, service centers and other processors.
The pressure cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, and oil and gas equipment.
Earnings:
This fiscal year ending in May analysts have been forecasting a 32% increase in net to $3.27 a share from $2.38 a year ago.
That estiamte should come down
Net for the fiscal fourth quarter ending in May is expected to decline 9% to 80 cents a share from 87 cents the year before.
Charts:
WOR's daily chart shows the stock gapping lower with expanding volume. The stock's CCI momentum indicator is bearish.
WOR's performance chart shows the stock up 25% versus a 15% gain for the stock market. However, WOR has been losing ground recently.
Strategy Opinion: TTD is targeting WOR for a decline to $39 withi the next few months or sooner. A protective stop buy can be placed near $48
Suitability: Aggressive Bears.
TTD's special probability research of WOR's Prior Performance:
Probability - Earnings Response - Average. Stock rose 7 out of the past 13 earnings reports.
Probability: Best Seasonal Declines - April average gain 1.9%. Best declining months December off 9%and August off 2.4%
TTD's Quality Rating of Stock - WOR - AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)