Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 7, 2018 |
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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 Accumulation 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.
Ticker Tape Digest's Midsession Stock Market Video Show(Posted around 1 p.m. NYSE Time) Go to TTD Stock Market Show For - WednesdayGo to Shows for Latest Week: Monday
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Wednesday - May 9, 2018
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts so far today - 17
Quality of Breakouts - Above Average
Stocks Screened - 12,234
Bull side - Large list of breakouts with several leading issues. Bulls can be venturesome.
Stock market - Bullish. Major market averages are now bullish in all time sectors.
Stock Market Momentum
(Daily is based on a moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bullish |
Dow - Bullish |
Dow - Bullish, |
Nasdaq - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
Ticker Tape Digest's
TTD's Quality Rating of Stock - BIO - ABOVE AVERAGE |
BIO, based in Hercules, Ca., makes clinical diagnostics products. Annual revenues: $2.2 billion. BIO's stock surges higher Wednesday and breaks out from a seven-month flat base. The move carries the stock to a new all-time high. That is bullish.
The drive higher was triggered by favorable earnings. TTD sees more on the upside.
So far today, BIO is trading 407,909 shares, triple its average daily volume of 134,000 shares.
BIO's stock shot higher in the morning and cut across its breakpoint line. The stock reached an intraday high of $283.96 in the morning. The stock then pulled back slightly and trended sideways.
BIO reported net for the first quarter of $1.17 a share versus 41 cents the year before.
The $1.17 topped the Street estimate of 90 cents a share.
Tape Action
BIO's tape action shows the recent block trades.
One can see the price for the blocks climbing from $253.69 in the prior session to as high as $281.91 Wednesday.
A key bullish block crossed in the morning when a block of 1,815 shares crossed the tape at $262.
That was up from the prior block trade at $253.69 on 1,117 shares late on Tuesday.
The largest block of the day was 18,200 shares that crossed at $279.28. That was up from the prior block at $277.21 on 600 shares.
Business
BIO operates through: Life Science and Clinical Diagnostics.
The company makes systems used to separate complex chemical and biological materials and to identify, analyze and purify their components.
The life science segment develops and services reagents, apparatus and instruments used for biological research.
The clinical diagnostics segment makes automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market.
BIO sells some 8,000 products.
Charts
BIO's 12-month performance chart shows the stock appreciating 23% versus a 15% gain for the stock market.
Insiders have been recent buyers at $98 to $107 a share. They were sellers at $221 to $270 a share.
BIO's long-term chart shows the stock climbing from $105 in 2014 to an all-time peak of $283.96. The stock came public in 1980.
BIO's daily chart shows the stock in a flat base the past two-and-half months.
The stock gaps big-time to clear its breakpoint with expanding volume.
The move looks similar to a breakout attempt back in February.
BIO's CCI momentum indicator is solidly bullish.
Earnings Outlook:
This year, analysts are forecasting a 37% jump in net to $5.73 a share from $4.10 the year before.
The stock sells with a price-earnings ratio of 48. TTD sees that as reasonable.
Looking out to 2019, the Street is projecting a 29% increase in net to $7.40 a share from the anticipated $5.73 this year.
Quarterly earnings will be strong. Net for the second quarter is expected to soar 117% to $1.26 a share from 58 cents a year ago. The highest estimate on the Street is at $1.34 a share.
TTD sees good chances for an upside earnings surprise. The company topped the consensus estimate the past three quarters by 27 cents a share, 22 cents and 58 cents.
Net for the third quarter is expected to leap 42% to $1.29 a share from the 91 cents the year before.
Strategy Opinion: TTD is targeting BIO for a move to $335 off this breakout. A protective stop can be placed near $262.
Intermediate-Term Rating: Above Average.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success - Bullish. BIO has scored solid gains off its recent breakouts. The stock is in a strong up trend.
Probability - Earnings Response - Very Bullish. BIO rose 6 times after the past 7 earnings reports when there was a significant change.
Probability: Seasonal Success - Bullish. BIO rose an average of 4.3% in May and 0.2% in June the past several years.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
21% |
10/27/2017 |
222.11 |
269.58 |
11/29/2017 |
15% |
4/19/2017 |
209.40 |
242.28 |
8/3/2017 |
24% |
2/21/2017 |
194.10 |
242.28 |
8/3/2017 |
9% |
8/5/2016 |
150.59 |
164.53 |
10/20/2016 |
23% |
3/2/2015 |
122.17 |
151.24 |
7/16/2015 |
14% |
1/8/2013 |
109.32 |
124.57 |
4/3/2013 |
(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
TTD's Breakout Profile Rating Bio Rad Labs Inc. (BIO) |
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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - PVAC - ABOVE AVERAGE |
TTD's Quality Rating of Stock - NEWR - ABOVE AVERAGE |
TTD's Quality Rating of Stock - WYNN - ABOVE AVERAGE |
TTD's Quality Rating of Stock - NVDA - ABOVE 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 - 15
Stocks Screened - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Large list of shorts as several stocks get knocked down on disappointing earnings.
TTD's short from Tuesday was Macrogenics Inc. (MGNX) at $20.18. Wednesday, MGNX falls to $19.92 and is working well for bears.
CSTE, based in Israel, makes engineered quartz surfaces. Annual revenues: $588 million. CSTE's stock falls sharply Wednesday and undercuts key technical support. The fall was triggered by disappointing earnings. TTD sees more on the downside.
So far today, CSTE is trading a heavy 2.8 million shares, 17 times its average daily volume of 161,000 shares.
CSTE came in with first quarter net of 10 cents a share. That was well below the 20 cents projected by the Street.
CSTE gapped lower in the morning undercutting key support. The stock finally hit a bottom in the afternoon at $12.60. It then lifted slightly in the final hour.
Tape Action
CSTE's tape action shows the recent block trades.
One can see the price for the blocks falling from $18.45 in the prior session to as low as $12.64 Wednesday.
A key bearish trade came in the morning when a block of 18,740 shares (duplicated) crossed the tape at $15.
That was down sharply from the prior block late on Tuesday at $18.45 on 22,062 a shares.
Near the close Wednesday, a block of 18,924 shares (duplicated) crossed the tape at $13.10. That came on an up tick from the prior trade at $13.05 on 100 shares. So, there was some buying near the close.
Business
CSTE makes quartz used as countertops in residential kitchens.
The other uses for quarts are for vanity tops, wall panels, back splashes, floor tiles, stairs, and other interior surfaces that are used for residential and non-residential applications.
Earnings:
Analysts have been forecasting a 5% increase in CSTE's net this year to $1.53 a share from the $1.45 a year ago.
However, with the disappointing first quarter, that forecast will come down.
Net for the second quarter is projected to be down 6% to 46 cents a share from 49 cents the year before.
Charts:
CSTE's daily chart shows the stock trending lower and now today cutting sharply below key technical support. The move comes with a gap and heavy volume.
CSTE's 12-month performance chart shows the stock down 65% versus a gain of 15% for the stock market.
Strategy Opinion: CSTE is a bit extended to the downside now, but TTD is targeting the stock for a decline down to $10 within the next few weeks or sooner.
Suitability: Aggressive Bears.
TTD's special probability research of Prior Performance:
Probability - Earnings Response - Neutral. CSTE rose 6 times after the past 12 earnings reports when there was a significant change.
Probability: Seasonal Activity - Bearish. CSTE declined an average of 7.4% in May but rose 0.3% in June the past several years.
TTD's Quality Rating of Stock - CSTE - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
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 “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.
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.
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(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.)