Daily - Bullish Investors - Go To TTD Pre-Market Opening Breakout Watch List - Tuesday, May 15, 2018 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 14, 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.
Tuesday - May 15, 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 as stock market pulls back. Bulls be careful of all positions.
Stock market - Bullish. Major averages remain bullish despite the sharp decline Tuesday
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 - SRI - ABOVE AVERAGE |
SRI, based in Novi, Mich., makes engineered electrical and electronic components, modules and systems for autos, motorcycle and off-highway and agricultural vehicles. Annual revenues: $824 million. SRI's stock breaks out Tuesday. The move carries the stock to a new all-time high. That is very bullish.
So far today, SRI is trading 462,354 shares. Its average daily volume is 274,000 shares.
TTD highlighted SRI in our prior report as a potential breakout. It clicks on Tuesday despite a big drop in the stock market.
SRI's stock rose sharply in the morning and cleared its breakpoint line. The stock then worked steadily higher the rest of the session. That was impressive given the stock market's decline.
SRI closed near its high for the day. That is very bullish.
Tape Action
SRI's stock shows the recent block trades.
One can see the price for the blocks climbing from $29.50 in the prior session to as high as $30.78 at the close Tuesday.
A key bullish trade came in the morning when a block of 6,561 shares crossed the tape at $29.92. .
That was up from the prior block at $29.50 on 4,217 shares.
Business
SRI operates in two auto segments: Control devices and electronics.
The company's control devices makes products that monitor vehicle functions such as sensors, switches, valves, and actuators.
SRI's electronics unit makes electronic instrument clusters, electronic control units and driver information systems.
It also makes in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices. The company operates in 12 countries.
Charts
SRI's 12-month performance chart shows the stock appreciating 70% versus a 16% gain for the stock market.
Insiders were buyers using stock options. The price was not disclosed. They were sellers at $27 this year.
SRI's long-term chart shows the stock making a bottom around $5 in 2012. The stock then rallied to around $15 by 2015.
The stock had a small pull back but then turned and trended higher to an all-time peak of $30.34 earlier this year.
SRI's daily chart shows the stock climbing from $22 in February to a peak around $30 by March.
The stock then trended sideways and eventually formed a cup-an-handle base.
The stock drives higher Tuesday and clears its base. SRI has moved higher the past nine session!
The stock's CCI momentum indicator (bottom of chart) is solidly bullish.
Earnings Outlook
Net for this year is expected to jump 32% to $2.07 this year from the $1.57 the year before.
The stock sells with a price-earnings ratio of 14. That makes SRI a good value-growth play.
Going out to 2019, the Street expects a more modest 8% increase in net to $2.23 a share from the anticipated $2.07 this year.
Quarterly earnings growth will show an acceleration. That is bullish.
Net for the second quarter is expected to climb 31% to 55 cents a share from 42 cents the year before.
The highest estimate on the Street is at 56 cents a share. TTD sees good chances for an upside earnings surprise. The company beat the consensus the past four quarters by 2 cents a share, 7 cents, 4 cents and 10 cents.
Then in the third quarter analysts project a 42% jump to 51 cents a share from 36 cents the year before.
Strategy Opinion: TTD is targeting SRI for a move to $38 within the next several months. A protective stop can be placed near $27.80.
Intermediate-Term Rating: Average.
Suitability: Average Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success - Bullish. SRI has scored some nice gains off some recent breakouts. The stock is now in a long-term up trend.
Probability - Earnings Response - Bullish. SRI rose 4 times after the past 6 earnings reports when there was a significant change in price.
Probability: Seasonal Success - Neutral. SRI has averaged a loss of 0.9% in May but a gain of 0.1% in June and 4.2% in July.
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 |
14% |
12/12/2017 |
22.99 |
26.35 |
1/19/2018 |
33% |
9/15/2017 |
17.31 |
23.14 |
11/29/2017 |
12% |
7/26/2016 |
16.94 |
19.02 |
9/22/2016 |
18% |
11/3/2015 |
12.95 |
15.32 |
12/24/2015 |
(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 Stoneridge Inc. (SRI) |
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 - HTHT - ABOVE AVERAGE |
TTD's Quality Rating of Stock - SHOO - ABOVE AVERAGE |
TTD's Quality Rating of Stock - GOOS - AVERAGE |
TTD's Quality Rating of Stock - FITB - 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 - 10
Stocks Screened - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Large list of breakdown stocks. Aggressive bears can be venturesome.
SWCH, based in Las Vegas, provides data center services. Annual revenues: $378 million. SWCH's stock falls sharply Tuesday after reporting disappointing earnings. TTD sees more on the downside.
So far today, SWCH is trading a heavy 6.1 million shares, 10 times its average daily volume of 585,000 shares.
TTD highlighted SWCH as a short at our midsession video show on the Web Tuesday.
SWCH reported net for the first quarter of 2 cents a share. That was well below the Street estimate of 5 cents the year before.
SWCH's stock declined in the morning and touched an intraday low of $13.02 by the early afternoon.
The stock then trended sideways into the close.
Tape Action
SWCH's tape action shows the recent block trades.
One can see the price for the blocks falling from $15.47 in the prior session to as low as $13.16.
A key bearish trade came in the morning when a block of 51,779 shares crossed the tape at $14.
That was down from the prior block the day before at $15.47 on 14,142 shares.
Business
SWCH operates data centers, and provides colocation, telecommunications, cloud services, and content ecosystems.
The company constructs and operates hyperscale data centers.
Earnings:
This year, analysts were forecasting a profit of 19 cents a share. That estimate should be lowered by analysts.
Net for the second quarter is expected to be 5 cents a share. There was no comparison with the year before available.
Looking out to the third quarter, the Street expects a 38% drop in net to 5 cents a share from the 8 cents the year before.
Charts:
SWCH's daily chart shows the stock trending lower from $18 in January down to $14. The stock tried to form a bottom, but Tuesday gaps lower and cuts below key support with heavy volume.
SWCH's 8-month performance chart shows the stock down 38% versus a gain of 14% for the stock market the past 12 months.
Strategy Opinion: TTD is targeting SWCH for a decline to $10 within the next few months, or sooner. A protective stop buy can be placed near $14.20.
Suitability: Aggressive Bears.
TTD's special probability research of Prior Performance:
Probability - Earnings Response - Bearish. SWCH declined once after one earnings report.
Probability: Seasonal Activity - Bearish. SWCH declined an average of 7.6% in May and did not trade in June.
TTD's Quality Rating of Stock - SWCH - 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 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.
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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.)