Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, April 13, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 11, 2016 |
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.
Breakout Stocks
Total Buy Breakouts so far today - 13
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large but very selective. Stock market resumes up rend. Earnings now coming and will be important.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bullishl
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - XRS - ABOVE AVERAGE |
XRS, based in China, provides K-12 after-school tutoring services. Annual revenues: $568 million. XRS's stock pushes higher Wednesday and clears an 8-week flat base. The move carries the stock to a new all-time high. That is bullish.
So far today, XRS is trading 833,604 shares, almost double its average daily volume of 468,000 shares.
The stock drove sharply higher in the morning to clear its breakpoint. (see 10-minute chart.
The stock then reached an intraday high of 55.47.
It trended sideways the rest of the day holding the bulk of its gain for the day.
XRS's tape action shows the recent block trades.
One can see the price for the blocks advancing from $52.11 in the prior session to as high as $55.23.
A key bullish trade came in the morning when a block of 3,829 shares crossed the tape at $52.60.
That was up from the prior block trade at $52.11 on 14,049 shares.
Then later in the day a massive block of 19,188 shares crossed at $55.
That was up sharply form the prior block at $54.22 on 3,135 shares.
XRS provides K-12 after-school tutoring services in China.
The company offers tutoring covering mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese.
It offers tutoring services primarily through small classes, including Xueersi Peiyou and Mobby tutoring services; personalized premium services; and online courses.
The company's educational network includes 289 learning centers and 267 service centers in Beijing, Shanghai, Guangzhou and other cities in China.
It also operates jzb.com, an online education platform that serves as a gateway to its online courses and other Websites, which offer college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, and personalized services.
XRS's 12-month performance chart shows the stock appreciating 52% versus a 1% decline for the stock market.
XRS's long-term chart shows the stock coming public in 2010 at $17.50. The stock then pulled back to around $10 and trended sideways unit 2013 when it broke out to the upside from its long-term chart.
Since then XRS has been working higher and has made a fivefold move. It is a leader in the educational sector in China.
XRS's daily chart shows the stock working higher from 38 to 52 by February.
The stock then trended sideways holding above its rising 50-day moving average line.
The breakout Wednesday is impressive coming with a widening of the daily spread.
That shows ease of price movement out of the base.
XRS's CCI momentum indicator (bottom of chart) is bullish.
The accumulation - distribution line (bottom of chart) compliments the price action.
Analysts are forecasting a 63% leap in XRS's earnings for the fiscal year ended in February to $1.34 a share from 82 cents a year ago.
They will report on April 28.
XRS tends to top the Street estimate. (see table from prior quarters).
There is now forecast for the fiscal fourth quarter ending in February.
Looking out to fiscal 2017, analysts predict a modest 5% increase in net to $1.41 a share compared with the anticipated $1.34 in fiscal 2016.
Strategy Opinion: TTD is targeting XRS for a move to 65 off this breakout.
A protective stop can be placed near 50 giving it room.
TTD rates XRS an average intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was the 5-star rated Morgan Stanley Inst. Global Opp. I Fund which purchased 478,060 shares. It has a 0.8% stake.
The largest fund holder is the 5-star rated Baron Emerging Markets Inst. Fund with a 0.86% stake. It was a recent seller of 60,000 shares.
XRS has 80 million shares outstanding. Institutions hold 90% of the stock and insiders have 8%.
Insider Activity: Not available.
Currently, 10 analysts follow the stock and all 10 have a buy, up from 9 three months ago.
XRS has a book value of $5.26 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Tal Education Group - (XRS) |
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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - TMP - AVERAGE |
TTD's Quality Rating of Stock - DQ - AVERAGE |
TTD's Quality Rating of Stock - SCL - AVERAGE |
TTD's Quality Rating of Stock - MFS - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side -
VZ, based in New York, provides wireless communications services. Annual revenues:$131.6 billion. VZ, a big cap stock, breaks to the downside Wednesday from a near-term head-and-shoulder pattern. The company is now being impacted by a strike by 39,000 workers.
So far today, VZ is trading 19.7 million shares. Its average daily volume is 13.6 million shares.
The stock fell sharply in the morning touching an intraday low of 50.84.
It then lifted slightly and trended sideways the rest of the day unable to mount a rally.
VZ's tape action shows the recent block trades.
One can see the price for the blocks falling from $52.18 in the prior session to as low as $51.14.
A key bearish trade came late on Tuesday when a massive block of 611,703 shares (duplicated) crossed the tape at $51.95.
That was down from the prior block trade at $52.18 on 84,000 shares.
A massive block of 1.4 million shares crossed near the close at $51.29.
That came on a down tick from the prior trade at $51.30 on 71,200 shares.
So, the institutional selling pressure was heavy.
VZ offers wireless voice and data services, messaging services; wireless Internet access on notebook computers and tablets; multimedia access and business-focused services.
This year, analyst are forecasting flat earnings at $3.99 a share. Net for the upcoming first quarter was projected to be up 4%. Net for the second quarter was expected to be down 2%. However, net could be even lower if it is impacted by the strike.
VZ's daily chart show the stock climbing from around 45 earlier this year to a peak near 54 by early April. However, it has since rolled over and is picking up heavy volume. The stock's CCI momentum indicator (bottom of chart) is bearish.
Strategy Opinion: TTD is targeting VZ for a decline to 44 within the next few months, or sooner. A protective stop buy can be placed near 53.70.
TTD's Quality Rating of Stock - VZ - 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.”
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.)