Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, April 6, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, April 6, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 3, 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.
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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 - April 6, 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 interesting plays. Bulls can be venturesome.
Stock market - Consolidating on a daily basis. The overall long-term trend remains bullish.
Stock Market Momentum
(Based on 14 unit moving average)
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Market (Daily) |
Market (Weekly) |
Market (Monthly) |
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Dow - Bearish |
Dow - Bullish |
Dow - Bullish, |
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Nasdaq - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
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S&P 500 - Bearish |
S&P 500 - Bullish |
S&P 500 - Bullish |
Ticker Tape Digest's
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TTD's Quality Rating of Stock - TCX - ABOVE AVERAGE |
TCX, based in Toronto, Canada, provides internet services. Annual revenues: $190 million. TCX's stock moves higher Thursday breaking out from an 11-week cup-and-handle base. TTD featured TCX as an accumulation play last Week. 
So far today, TCX is trading 137,306 shares. That is almost double Its average daily volume of 72,500 shares. The stock is thinly traded.
TCX has a beta of 1.22 versus 1.00 for the stock market. So, it is slightly more volatile than the stock market.
TCX's pushed higher in the morning and cleared its breakpoint line. (see 10-minute chart)
The stock reached an intraday high of $53.05 in the morning.
It then drifted lower in the afternoon, but held above its breakpoint line.
Tape Action
TCX's tape action shows the recent block trades.
One can see the price for the blocks climbing from $50.75 in the prior session to as high as $52.75 Thursday. 
A key bullish trade came in the morning when a block of 3,343 shares crossed the tape at $52.10.
That was up from the prior block trade at $50.75 on 2,514 shares late on Wednesday.
The blocks are small because the stock is thinly traded.
Business
TCX provides domain services and network access services.
The domain services has over three service offerings, being wholesale and retail domain name registration services, value added services and portfolio.
The network services covers mobile services and other services.
The network services sells retail mobile phones and services (Ting Mobile) to individuals and small businesses through the Ting Website.
Charts
TCX's 12-month performance chart shows the stock surging 135% versus a 16% gain for the stock market.
Insiders were recent buyers using stock options around $3. They were sellers from $32 to $49. A lot of the insider selling was done by directors.
TCX's long-term chart shows the stock climbing strongly from $3 back in 2012 to a peak of $52.75 earlier this year. That is adjusted for a 1-for-4 reverse stock split in 2013. 
Thursday, TCX makes a new all-time high of $53.05
TCX's daily chart shows the stock climbing from $32 back in November to a peak near $51 by January.
The stock then backed off and formed a cup-and-handle base.
The breakout Thursday clears the base and comes with an expansion in volume.
TCX's CCI momentum indicator is solidly bullish.
Earnings
This year, analysts are forecasting a 28% increase in net to $1.92 a share from $1.50 a year ago.
The stock sells with a price-earnings ratio of 26, TTD sees that as reasonable.
Going out to 2018, the Street is predicting a 52% surge in profits to $2.91 a share from the anticipated $1.92 this year.
Net for the next two quarters will show an acceleration in growth. That is bullish.
Profits for the upcoming first quarter should rise 15% to 47 cents a share from 41 cents the year before.
Then for the second quarter profit growth should accelerate to 26% with net hitting 48 cents a share against 38 cents the year before.
Strategy Opinion: TTD is targeting TCX for a move to $62. A protective stop can be placed near 48 giving it some room.
TTD rates TCX a good intermediate-term play provided earnings meet expectations.
Suitability: Average bulls
TTD's special research of Stock's Prior Performance:
Probability: Breakout Success - Above Average. TTD's research shows that recently (see table) TCX has scored some sensational gains off its breakouts. The stock remains in a strong up trend.
Probability: Earnings Response - Average. The stock has moved higher 3 out of the past 6 earnings reports. TCX does have a tendency to move higher prior to a favorable earnings report.
Probability: Seasonal Success - Well Above Average. TCX has averaged a gain of 9.6% in April the past five years.
Stock's Prior Performance After A Breakout
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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 |
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48% |
12/8/2016 | 34.65 | 51.45 | Still in play |
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17% |
9/21/2016 | 28.37 | 33.35 | 10/4/2016 |
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26% |
7/6/2016 | 24.99 | 31.61 | 8/8/2016 |
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7% |
4/18/2016 |
23.33 |
24.98 |
4/19/2016 |
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62% |
5/15/2015 | 19.44 | 31.59 |
7/21/2015 |
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15% |
11/13/2014 | 16.69 | 19.21 | 1/5/2015 |
(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 - SQM - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - STZ - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - YUMC - AVERAGE |
| TTD's Quality Rating of Stock - MDSO - 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 - 4
Stocks Screened - 12,234
Long-Term Environment for bears:
Bear Side - Small list of breakdown stocks Thursday. Bears be conservative.
TTD's short from Wednesday was Innophos Holdings Inc. (IPHS) at $47.80. Thursday, IPHS declined to $47.41 and is working well for bears.
RECN, based in Irvine, Ca., provides consulting services in accounting and management. Annual revenues: $590 million. RECN's stock breaks down sharply Thursday after reporting disappointing earnings. TTD sees more on the downside. 
So far today, RECN is trading a heavy 668,101 shares, almost five times its average daily volume of 140,000 shares.
RECN reported net for the fiscal third quarter ending in February was nine cents a share.
That was well below Street consensus estimates of 14 cents a share.
RECN's stock gapped lower in the morning cutting below key technical support.
Tape Action
RECN's tape action shows the recent block trades.
One can see the price for the blocks falling from $16.24 in the prior session to as low as $13.65.
A key bearish trade came late on Wednesday when a block of 20,176 shares (duplicated) crossed the tape at $16.05.
That was down from the prior block at $16.24 on 5,222 shares.
Business
RECN provides consulting and business initiative support services to global clients
The services cover accounting, finance, corporate governance, risk and compliance management, communications and restructuring.
RECN also offers a range of technology solutions such as enterprise resource planning systems, information systems, and supply chain management.
Earnings
This fiscal year ending in May analysts have been forecasting a 9% decline in net to 74 cents a share from 81 cents a year before. That estimate could come down.
Net for the fiscal fourth quarter is expected to be up 23% to 28 cents a share from 23 cents the year before.
However, RECN has disappointed with earnings the past three quarters.
Charts:
RECN's daily chart shows the stock gapping lower with big volume. The stock's CCI momentum indicator is extremely bearish.
The 12-month performance chart shows the stock down 3% versus a gain of 15% for the stock market.
Insiders have not been active, although they did receive stock options. The price was not disclosed.
Strategy Opinion: TTD is targeting RECN for a decline to $10.20 within the next few months, or sooner. A protective stop buy can be placed near $14.05
Suitability: Aggressive Bears.
TTD's special probability research of WOR's Prior Performance:
Probability - Earnings Response - Very Bearish. Stock rose just 4 times after the past 14 earnings reports. The times it decline it was often a gap move to the downside.
Probability: Best Seasonal Declines - Very Bearish. RECN has declined an average of 9.5% in April.
| TTD's Quality Rating of Stock - RECN - BELOW 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.)
