Daily - Go to TTD's Tape of  Stock Charts - Wednesday, May 8, 2013

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Wednesday, May 8, 2013

Ticker Tape Digest

Wednesday - May 8, 2013

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 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 - 12

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side - Good number of breakouts with some good looking plays. Bulls be venturesome.  Stock market holds up trend.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - May 8

(See Top Performing Breakout Stocks for 2011- 2012)

(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

Canadian Pacific Railway Ltd. (CP)  - 131.20, up 2 - Breakpoint 128.51

Profits to Jump 43% This Year, TTD Targets 160

   CP, based in Calgary, Canada, operates a railway system servicing cities in Canada and the U.S. Annual revenues: $5.8 billion. CP's stock breaks out today from a ten-week flat base. The stock hits a new all-time high of 131.31. That tops the prior all-time high of 130.81 set in March.

 TTD highlighted CP as a breakout at our midsession video show on the Web Wednesday.

 The stock is up nicely. Volume is running at 682,346 shares. That is below its average daily volume of 841,000 shares. So, the breakout comes on modest volume.

  However, TTD leans to the stock because of the firm's strong earnings outlook.

  The stock pushed higher in the morning to clear its breakpoint line. (See 10-minute chart). It peaked around midday and then trended sideways through most of the afternoon. It finished near its high for the session, which is bullish.

  CP's tape action shows the recent big block trades.

 One can see the price for the blocks climbing from $128.87 to a peak of $131.24 late in the day.  

 A key bullish trade came in the morning when a block of 2,064 shares crossed the tape at $129.42.  That was up from the prior block at 128.87.

  There was a large block of 52,690 that crossed around noon at $130.50. That was on a down tick from $130.51 on 100 shares.

  So, it indicates some selling pressure. However, the stock shook it off an moved higher.  

  CP has 14,700-mile network serving the principal business centres of Canada, from Montreal to Vancouver, British Columbia and the United States Midwest and Northeast regions.

 The company's network is consisted of four primary corridors: Western, Eastern, Central and the Northeast United States.

 The Western Corridor links Vancouver with Thunder Bay, Ontario, which is the western Canadian terminus of its Eastern corridor.

  The Western Corridor provides access to the Port of Thunder Bay, Canada’s Great Lakes bulk terminal.

   Its business includes bulk, which include grain, coal, and sulphur and fertilizer; merchandise, which include forest products, industrial and consumer products, and automotive; and intermodal.

  CP's 12-month performance chart shows the stock appreciating 78% vs. a 20% gain for the S&P500 index.

  CP's long-term chart shows the stock climbing from 10 back in 2000 to a peak of 90 in 2007.

  The stock then took a dive during the bear market falling to 25 in early 2009. Since then the stock has been advancing well. The push to a new high could draw in more buying on Thursday.  

   TTD's daily chart shows the stock climbing from 80 back in October to 128 by March

  The stock put down a brief flat base and tried to breakout, but faded back in early April.

  The stock continued to base in an excellent way.

  Today, it breaks out on modest volume.

  The stock's TTD momentum indicator (top of chart) is strongly bullish.

  The accumulation - distribution line (bottom of chart) is in a solid up trend showing good underlying buying.

  This year, analysts project a 43% jump in net to $6.20 a share from $4.31 a year ago.

  The stock sells with a price-earnings ratio of 21. TTD sees that as low making the stock attractive to value investors.

  Looking ahead to 2014, the Street expects net to climb 23% to $7.60 a share from the anticipated $6.20 a share this year.

  Quarterly earnings growth will be strong.

  Net for the second quarter should soar 67% to $1.47 a share from 88 cents a year ago. The highest estimate on the Street is at $1.55 a share. The company tends to come in close to the Street estimate.

  Net for the third quarter should climb 33%  to $1.75 a share from  $1.31 a year ago. The highest estimate on the Street is at $1.87 a share.   

   Strategy Opinion: TTD is targeting CP for a trip to 160 off this breakout.  A protective stop can be placed near 120. TTD rates CP a good intermediate-term play due to its solid earnings outlook.

  Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Contrafund with a 3.4% stake. It has held its position steady.

 A key buyer recently was 4-star rated American Funds American Balanced Fund which purchased 1.2 million shares.

 CP has 174.6 million shares outstanding. Institutions hold 61% of  the stock.

   Insider Activity: Not available. Currently, 20 analysts follow the stock, 5 have a  buy, up from 4 three months ago.      

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 - 5

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Small list of shorts as stock market continues to advance. Bears be selective. TTD's short from Tuesday was Ruckus Wireless (RKUS) at 14.42. Today, the stock is trading at 14.08 and is working fine for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Axiall Corp. (AXLL) - 47.57, down 8.94

Earnings Disappoint, TTD Sees Drop to 41.50

  AXLL, based in Atlanta, Ga., makes housing products such as door profiles, pipe and decking. Annual revenues: $3.3 billion. AXLL's stock falls sharply today after the company disappointed with first quarter earnings. So far today, AXLL is trading 11.8 million shares, ten times its normal daily volume of 1.4 million shares. TTD sees more on the downside.

  TTD highlighted AXLL as a short at our midsession video show on the Web Wednesday.

  AXLL reported first quarter net declined to 76 cents a share from 79 cents a year ago. That was well below the Street consensus estimate of $1.21 a share.

  AXLL's stock gapped lower in the morning. The stock hit an intraday low of 46.03 in the morning. The stock then lifted slightly and trended sideways the rest of the day.

  AXLL's tape action shows the recent block trades.

  One can see the price for the blocks falling from $52 earlier in the session to as low as $46.51.

  A key bearish trade came when a block of 71,637 shares crossed the tape at $41.50. That was down from the prior block at 52.

 AXLL makes chemical products such as chlorovinyls and aromatics.

 The firm also makes vinyl-based building and home improvement products that are marketed under the Royal Building Products and Exterior Portfolio brands.

 The items include window and door profiles, siding, mouldings, pipe and pipe fittings, and decking. AXLL was formerly known as Georgia Gulf Corp.

  Analysts have been forecasting a 34% rise in AXLL's earnings this year to $5.15 a share from $3.85 a share a year ago. However, that forecast could come down.

   AXLL's daily chart shows the stock falling sharply and under cutting key support. The stock's accumulation - distribution line did not reveal any weakness prior to the news. So, it came as a surprise.

   Strategy Opinion: TTD is targeting AXLL for a decline to 41.50. A protective stop can be placed near 48.80.

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. - 2013

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.)