Ticker Tape Digest

Tuesday - May 1, 2018

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 Accumulation 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.

Tuesday - May 1, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  5

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts. Bulls be conservative.

Stock market  -  Bearish daily and weekly Dow and S&P 500. However, Nasdaq is bullish. Stock market remains in an overall trading range.

Stock Market Momentum

(Daily is based on a moving average)

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

Wex Inc. (WEX)  - 165.48, up 3.56 - Breakpoint 163.40

Net To Surge 42% this year, TTD Targets 200 

    WEX, based in South Portland, Me., provides corporate payment solutions. Annual revenues: $1.3 billion. WEX's stock moves higher Tuesday breaking out from its 10-week flat base. The move carries the stock to a new all-time high. That is bullish.

  So far today, WEX is trading 305,366 shares. Its average daily volume is 273,000 shares.

 WEX's stock moved lower in the morning, but then turned up and by the early afternoon cleared its breakpoint line. (see 10-minute chart)

 The stock then continued to drive higher in the afternoon and picked up increased volume.

 WEX closed near its high for the day. That is bullish.

  Tape Action

  WEX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $161.31 in the morning to as high as $165.48.

  A key bullish trade came late in the morning when a block of 11,100 shares crossed the tape at $161.67.

  That was up from the prior block trade at $161.31 on 1,677 shares.

  Business  

  WEX operates in three areas:  Fleet solutions, travel and corporate Solutions, and health and employee benefit solutions.

Fleet solutions provides customers with payment and transaction processing services designed for the needs of commercial and government fleets.

 Travel and corporate solutions handles business-to-business payments. The health and employee benefit solutions provides healthcare payment products and software  to customers in Brazil.

Charts

  WEX's 12-month performance chart shows the stock appreciating 60% versus a 12% gain for the stock market.

  Insiders were recent buyers using stock options. The price was not disclosed. They have been sellers at $102 to $149 a share.

  WEX's long-term chart shows the stock dipping to a low of $36.78 in 2011. However, the stock turned and trended steadily higher to a peak at $118.79 by 2015.

 The stock then went into another pull back this time to $54.42 in early 2016.

  The stock has since turned up and is trending sharply higher.   

  WEX's daily chart shows the stock climbing from $120 back in January to a peak near $159 by February.

  The stock attempted a breakout from a small base in March, but faded back.

  However, WEX regrouped and has now closed above the top of its breakpoint zone.

  WEX's CCI momentum has turned up and is strongly bullish.

  Earnings Outlook

  This year, analysts are forecasting a 42% surge in net to $7.66 a share from the $5.41 the year before.

  The stock sells with a price-earnings ratio of 21. TTD sees that as attractive for value-growth investors.

  Looking out to 2019, the Street predicts a 15% increase in net to $8.80 a share from the anticipated $7.66 this year.

  Quarterly earnings growth will show an acceleration. That is bullish.

  Net for the first quarter is expected to climb 40% to $1.72 a share from the $1.23 a year ago.

  The highest estimate for the quarter is at $1.74 a share.

  TTD sees good chances for a "modest beat." The company topped the consensus estimate the past four quarters by 3 cents a share, 3 cents, one cent and one cent.

  WEX will report earnings on May 3, Thursday.

  Net for the second quarter is projected to surge 49% to $1.88 a share from the $1.26 the year before.

Strategy Opinion:  TTD is targeting WEX for a move to $200.  A protective stop can be placed near $158 after a breakout.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success -  Bullish. WEX has scored some modest gains off some recent breakouts. The stock is now in a long-term up trend.

Probability - Earnings Response -  Slightly Bearish.   WEX rose 4 times after the past 9 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Slightly Bullish.  WEX has averaged a gain of 0.3% in May and 1.9% in June the past several years.

           Stock's Prior Performance After A Breakout

(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

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 - 14

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Large list of breakdown stocks Tuesday. Many are breaking down on disappointing earnings.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Cummins Inc. (CMI) - 153.28, down 6.58

Net Falls for the Quarter, TTD Sees Drop to 135

  CMI, based in Columbus, Ind., makes diesel and natural gas engines and components. Annual revenues: $20.4 billion. CMI's stock falls sharply after reporting disappointing earnings. TTD sees more on the downside.

  So far today, CMI is trading 4 million shares, triple its average daily volume of 1.6 million.

 CMI reported an 18% drop in net for the first quarter to $1.96 a share from the $2.36 the year before. The 2018 results due include a special tax charge.

  CMI was highlighted as a short by TTD at our midsession video show on the Web.

  CMI's stock fell steadily in the morning and undercut key technical support.

  The sock touched an intraday low of $149.10 in the morning. It then trended sideways and lifted a bit late in the day.

  Tape Action

  CMI's tape action shows the recent block trades.

  One can see the price for the blocks falling from #161.72 in the prior session to as low $149.20.

  A key bearish trade came late on Monday when a massive block of 166,318 shares (duplicated) crossed the tape at $159.86.

  That was down from the prior block trade at $161.72 on 12,417 shares.   

  Business

  CMI operations cover the production of engines, components and power systems.

The firm makes diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the truck, bus, recreational vehicle, light-duty automotive and agricultural markets.

  The power systems segment consists of power generation and industrial and generator technologies.

  Earnings:

  This year, analysts are forecasting a profit of $11.70 a share, a 10% increase from the $10.62 of the prior year.  

Charts:   

 CMI's daily chart shows the stock trending lower from $192 in January to around support at $155. Tuesday, the stock gaps below key support with a big pick up in volume.

  CMI's 12-month performance chart shows the stock up 3% versus a 12% gain for the stock market.

  Insiders have received stock options but have not done any buying recently. The buying price was not disclosed.

Strategy Opinion: TTD is targeting CMI for a decline to $135 within the next few months, or sooner. A protective stop buy can be placed near $170.

Suitability: Average Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Bearish.  CMI rose just 3 times after the past 8 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Bearish.   CMI was unchanged for May but down 0.3% in June the past several years.

   Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   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. - 2018

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show 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.

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 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)