Daily - Go to TTD's Chart scroller of  Breakout and Leading Stocks - Tuesday, April 19, 2016

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Tuesday, April 19, 2016

Ticker Tape Digest

Tuesday - April 19, 2016

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.

  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 - 14

Overall Quality of Breakouts - ABOVE AVERAGE

Stocks Screened - 8,300

Bull side - Breakout list large with some good looking plays. Paper and Aerospace stocks breaking out. Stock market holds in up trend.  

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

    Stock Market Momentum

Market (Daily) - NYSE Bullish, Nasdaq Bearish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday

(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

New Oriental Education and Tech Group  (EDU) - 39.54, up 3.28 - Breakpoint 36.48

Quarterly Profit Growth to Accelerate, TTD Targets 47

    EDU, based in China,  provides private educational services under the New Oriental brand in China. Annual revenues: $1.4 billion. EDU's stock breaks out from a six-week flat base Tuesday and hits a new all-time high. That is bullish.

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

  The company reported a 16% increase in net for the fiscal third quarter ended in February of 34 cents a share, up from 29 cents a year ago.

  So far today, EDU is trading 3.7 million shares, triple its average daily volume of 1.2 million shares.

  EDU's stock gap higher in the morning to clear the base.

 The stock ran up sharply to a peak of 39.79 in the morning.

 The stock then trended sideways through the rest of the day.

  EDU's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $36.26 to as high as $39.54.

  A key bullish trade came in the morning when a block of 48,197 shares crossed the tape at $37.40.

  That was up from the prior block trade at $36.26 on 22,200 shares.

  Then late in the day a massive block of 140,925 shares (duplicated) - the largest of the day - crossed at $39.54.

  That was up from the prior block at $39.50 on 14,400 shares.   

  The tape showed aggressive institutional buying.

  EDU  offers test preparation courses to students taking language and entrance exams used by educational institutions in the U.S., China, and commonwealth countries.

 EDU provides after-school tutoring courses for middle school and high school students to help students achieve better scores on entrance exams for admission into high schools or higher education institutions.

The company also provides language training courses consisting of English, German, Japanese, French, Korean and Spanish.

  EDU operates full-time private primary and secondary boarding school in Yangzhou.

  EDU's 12-month performance chart shows the stock appreciating 62% versus a breakeven for the stock market.

  EDU's long-term chart shows the stock coming public in 2006 at $6. The stock eventually rose to a peak of $34.77 in 2011.

  The stock then fell back hard to $10 in 2012. It climbed back to around 33 in 2013, but fell back again. After forming a bottom, EDU's stock has been trending strongly higher.

  The push to a new high Tuesday could bring in more buying on Wednesday from the new-high crowd.

  EDU's daily chart shows an ideal set up.

  EDU's stock climbed from 27 back in January to around 36 by March.

  The stock then put down a tight flat base above its rising 50-day moving average line. That is ideal.

  The breakout clears key resistance with a gap move and strong volume.

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

  EDU's accumulation - distribution line (bottom of chart) is working higher.

  That shows good underlying buying.

  This fiscal year ending in May the Street is looking for a 21% increase in net to $1.46 a share from $1.21 a year ago. Analysts have been raising their estimates.

  The stock sells with a price-earnings ratio of 26. TTD sees that as reasonable.

  Going out to fiscal 2017 ending in May, analysts predict a 23% rise in net to $1.80 a share from the anticipated $1.46 this year.

  EDU came in with a 16% rise in fiscal third quarter net ending in February.

  Looking out to the fiscal fourth quarter ending in May, analysts predict a hefty 117% surge in profits to 50 cents a share from 23 cents a year ago.

  One can see on our table, though, that EDU tends to beat the consensus at times.

  Strategy Opinion: TTD is targeting EDU for a move to 47 off this breakout.

  A protective stop can be placed near 36 giving it some room.

  TTD rates EDU an average intermediate-term play.

  Sponsorship: Good. One of the largest fund buyers recently was 5-star rated Boston Partners Long/Short Research Inst. which purchased 459,080 shares. It now has a 0.5% stake.

  The largest fund holder is the 4-star rated Opppenheimer Developing Markets A Fund with an 8.4% stake. It has kept its position steady. .

  EDU has 157 million shares outstanding. Institutions hold 86% of the stock and insiders have 12%.

  Insider Activity: Not available.

  Currently, 12 analysts follow the stock, 9 have a buy, up from 8 three months ago.

  EDU has a book value of  $8.22 a share.

Stock Performance Chart with Quarterly Earnings Markers.

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 - 9

Stocks Screened - 8,300

Long-Term Environment for bears: Neutral.

Bear Side - Large list of breakdown stocks today. Bears can be venturesome. Earnings coming and will be very important.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Applied Optoelectronics Inc. (AAOI) - 11.66, down 4.45

Loss Expected for Quarter, TTD Sees Decline to 9.30

  AAOI, based in Sugar Land, Tex., makes and sells fiber-optic networking products primarily for Internet data center, cable television  and fiber-to-the-home networking systems. Annual revenues: $190 million. AAOI's stock falls sharply Tuesday and undercuts key technical support.

  So far today, AAOI is trading 5 million shares, 16 times its average daily volume of 292,000 shares.

  AAOI's decline was triggered when it forecast a first quarter loss of 4 to 6 cents a share.

  That compares with a prior forecast of a profit of 21 to 28 cents a share.

  The stock fell sharply in the morning. It touched a low of $11.61 during the session. It was unable to sustain a rally during the day.

  AAOI's tape action shows the recent block trades.

  One can see the price for the blocks falling from $15.09 in a prior session a few days ago to $12.08 on Tuesday.

  A key bearish trade came in the morning when a block of 22,555 shares crossed at $12.66. That was down from the prior big block trade a few days ago at $15.09 on 22,064 shares.

  AAOI offers optical modules, optical transceivers, lasers, transmitters, and turn-key equipment, as well as headend, node and distribution equipment.

 The company sells its products to internet data center operators, CATV and telecom equipment makers, and internet service providers .

  The Street was forecasting a 47% increase in AAOI's earnings this year to $1.32 a share. However, that forecast will get slashed.

 AAOI's daily chart shows the stock gapping lower on big volume Tuesday. The accumulation - distribution line (bottom of chart) is bearish.

  Strategy Opinion: TTD is targeting AAOI for a decline to 9.30 within the next few months, or sooner. A protective stop buy can be placed near 12.60.

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. - 2016

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.)