Daily - Go to TTD's Tape of Stock Charts - Friday, April 26, 2013 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 22, 2013 |
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 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 - Small list of breakouts. Bulls be selective. Stock market in a trading range after recent strong advance. Earnings reports will continue to dominate action.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - DHI - AVERAGE |
DHI, based in Fort Worth, Tex., is a major homebuilder in the U.S. Annual revenues: $4.7 billion. DHI's stock breaks out today from a 13-week flat base. The move carries the stock to a six-year high. The push higher was triggered by favorable quarterly earnings.
TTD highlighted DHI as a breakout at our midsession video show on the Web Friday.
DHI's 10-minute chart shows the stock gapping higher in the morning. It then consolidated its gain through most of the day. In the afternoon, the stock started to move higher again with intraday volume picking up.
DHI reported earnings for the fiscal second quarter ended March jumped to 32 cents a share from 13 cents a year. The 32 cents topped the consensus estimate on the Street of 20 cents a share. The stock responded bullishly to the news.
Home building stocks have been coming in with better than expected profits and many have been pushing higher.
DHI's tape action shows the recent big block trades.
One can see the price for the blocks climbing from $24.53 to as high as $26.84.
A key bullish trade came in the morning when a block of 246,168 shares crossed the tape at $25.98. That was up sharply from the prior block at $24.53.
So, the tape showed aggressive institutional buying in DHI.
The company builds high-quality, single-family homes designed principally for the entry-level and move-up markets.
The company was started in 1978. DHI builds homes in the Midwest, Mid-Atlantic, Southeast, Southwest, and Western regions of the United States. The company also provides mortgage financing and title services.
DHI's 12-month performance chart shows the stock appreciating 62% versus 18% for the S&P 500 index.
DHI's long-term chart shows the typical cyclical pattern of the housing stocks. DHI stock soared from 3 to a peak of 42 in 2005. The stock then made the round trip back to 3 in 2008 due to the bear market.
However, since then DHI's stock has been on the move higher and is at a 6-year high.
DHI's daily chart shows the stock advancing from 18 back in November to a peak around 25. The stock put down a cup-and-handle base and broke out. However, it did not work and the stock faded back.
The past few sessions, though, DHI has moved sharply higher and has cleared its upside resistance.
The stock's TTD momentum indicator (top of chart) is extremely bullish.
The accumulation - distribution line (bottom of chart) has turned up and compliments the price action.
This fiscal year ending in September, analysts are forecasting DHI will show a 36% gain in net to 31 cents a share from 23 cents a year ago. TTD sees good chances for that forecast to be raised.
Going out to fiscal 2014, earnings are projected to climb 31% to $1.02 a share from the anticipated 31 cents for fiscal 2013.
Earnings for the upcoming fiscal third quarter should leap 54% to 20 cents a share from 13 cents a year ago.
Strategy Opinion: TTD is targeting DHI for a move to 32 off this breakout. A protective stop can be placed near 24.80.
TTD rates DHI a very good intermediate-term play so long as earnings remain on course.
Sponsorship: Excellent. The largest fund holder is Fidelity Contrafund with a 5.6% stake. The 4-star rated fund was a recent buyer of 682,966 shares.
Also, the 4-star rated T. Rowe price Inst. Large Cap Growth Fund was a recent purchaser of 707,600 shares.
DHI has 321.3 million shares outstanding. Institutions hold 89% of the stock.
Insider Activity: Bearish. Insiders were recent buyers around 11 to 14 using stock options. They were recent sellers around $24. Currently, 16 analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating D.R. Horton Inc. - (DHI) |
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 | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - ALV - AVERAGE |
TTD's Quality Rating of Stock - SATA - AVERAGE |
TTD's Quality Rating of Stock - NR - AVERAGE |
TTD's Quality Rating of Stock - ENPH - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of short plays today. Bears can be venturesome. Stock market in a trading range within an up trend.
MMSI, based in South Jordan, Utah, produces medical products to treat cardiovascular disease. Annual revenues: $394 million. MMSI's stock falls sharply today after reporting disappointing earnings for the first quarter. So far today, volume is running at 1.2 million shares, six times its average daily volume of 238,000 shares.
MMSI reported net for the first quarter fell to 2 cents a share from 14 cents a year ago. Results were below Street estimates and the stock responded bearishly.
TTD highlighted MMSI as a short at our midsession video show on the web.
The stock fell sharply in the morning. It hit an intraday low of 9.15 in the morning. The stock then lifted slightly and trended sideways the rest of the day.
The stock's tape action shows the recent big block trades.
One can see the price for the blocks dropping from $11.33 to as low as $9.82. A key bearish block came when 27,596 shares (duplicated) crossed the tape at $10.23. That was down sharply from the prior block at $11.12.
The tape showed heavy institutional selling pressure.
MMSI makes medical products for use in diagnosis and treatment of cardiovascular disease.
The company's products are designed to provide physicians with devices to perform interventional and diagnostic procedures effectively.
This year, analysts are forecasting a 20% drop in net to 16 cents a share from 20 cents a year ago.
MMSI daily chart shows the stock gapping lower in February on big volume. The stock then tried to form a bottom, but today it falls with a gap move on heavy volume. The stock's TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting MMSI for a drop to 7.80 within the next few months or sooner. A protective stop buy can be placed near 10.50.
TTD's Quality Rating of Stock - SAM - 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: B. J. 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.)