Daily - Go to TTD's Chart scroller of  Breakout Stocks - Tuesday, May 16, 2017

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Tuesday, May 16, 2017

Daily - Bullish Aggressive Investor - Go To TTD Quick Trade Setups (74% win rate) - Tuesday, May 16, 2017

Ticker Tape Digest

Tuesday -  May 16, 2017

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 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 - Tuesday Go to Shows for Latest Week: Monday - Tuesday - Wednesday - Thursday -  Friday (Best with Cable or DSL - High quality - Windows Media Video)

Tuesday - May 16, 2017

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today - 8

Quality of Breakouts - Average

Stocks Screened - 12,234

Bull side - Small list of breakouts and very selective. Bulls be conservative.

Stock market - Bullish. All major averages remain bullish in all time zones.

Stock Market Momentum

(Based on 14 unit 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

Cavium Inc. (CAVM) - 75.48, up 3 - Breakpoint 74.03

Net to Surge 132% in Fiscal 2017 (Sept.), TTD Targets 240

     CAVM, based in San Jose, Ca., makes semiconductor processors used for networking, storage and other purposes. Annual revenues: $603 million. CAVM's stock drives higher Wednesday to breakout from a 10-week flat base. The stock is close to making a new all-time high. It it does that would be bullish.

  So far today, CAVM is trading 1.4 million shares. Its average daily volume is 974,000 shares.

  CAVM pushed higher in the morning to edge across its breakpoint line. (see 10-minute chart).

  The stock continued to drive higher and reached an intraday peak of $76.26 in the afternoon.

  It hen pulled back a bit late in the session but remained well above its breakpoint line.

Tape Action

  CAVM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $72.18 in the prior session to as high as $75.48 during the day.

  A key bullish trade came near the close on Monday when a block of 36,127 shares (duplicated) crossed the tape at $72.48.

  That was up from the prior block at $72.18 on 19,600 shares.

  Near the close Tuesday several blocks crossed at $75.48.

 That was up from a prior block at $75.39 on 11,000 shares.

  Business

  CAVM makes systems that enable the processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and home and office applications.

   The Company's products include OCTEON, OCTEON Fusion, OCTEON XL, LiquidIO, NITROX, NEURON Search, ThunderX, Xpliant and XPA.

  The company's  products are used in routers, switches, wireless local area networks and unified threat management.

  CAVM has been working closely with Microsoft corp.

  Charts

  CAVM's 12-month performance chart shows the stock appreciating 60% versus a 19% gain for the stock market.

  The stock has been performing very well the past six months.

  Insiders have been recent buyers around $12.50 to $25 using stock options. They were sellers around $54 to $66.

  CAVM's stock came public in 2007 at $16.50. The long-term chart shows the stock falling back $7.14 in 2009 due to the bear market.

  However, the stock turned and rallied to a peak of $48.30 in 2011.

  The stock went into a long-term consolidation, broke out in 2014 and raced to an all-time high of $77.42 in 2015

 CAVM is now poised to challenge that high.

  CAVM's daily chart shows the stock forming a flat base and then breaking out in late May.

  However, it faded back into the base.

  The current breakout comes with a widening of the daily spread showing ease of price movement and expanding volume.

  The stock's CCI momentum indicator (bottom of chart) is strongly bullish.

 Earnings Outlook

  This year, analysts are forecasting a robust 631% surge in profits to $1.46 a share from 20 cents a year before.

  The stock sells with a price-earnings ratio of 51. That is high but okay given the earnings growth outlook.

  Looking out to 2018, the Street is predicting a 63% jump in net to $2.38 a share from the anticipated $1.46 for 2017.

  Net for the first quarter should soar 738% to 34 cents a share from 4 cents a year before.

  The highest estimate on the Street is at 40 cents a share. CAVM tends to be erratic versus the Street estimate. So, the stock needs to be watched closely.

  Going out to the third  quarter, analysts predict a profit of 40 cents a share compared with a loss of 16 cents the year before.

Strategy Opinion:  TTD is targeting CAVM for a move to $90 off this breakout. A protective stop can be placed near $71 giving it some room.

 TTD rates CAVM a good intermediate-term play provided earnings meet expectations.

Suitability:  Aggressive Bulls.

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

Probability - Breakout Success - Average - CAVM has scored some modestly good gains off its breakouts in recent year.

Probability - Earnings Response - Average - CAVM has moved higher 5 out of the past 11 earnings reports where there has been a significant change.

Probability:  Seasonal Success - Well Above Average -  CAVM has risen an average of 7.8% in May and has been up in May for the past five 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 - 4

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of shorts Tuesday. Retail related stocks continue under selling pressure.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Ralph Lauren Corp. (RL) - 73.94, down 2.61

Stock Cuts Below Support, TTD Sees Decline to 65

  RL, based in New York, makes and sells clothes and home furnishings. Annual revenues: $7.4 billion. RL's stock falls sharply in the morning and cuts below key technical support. TTD sees more on the downside.

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

  So far today, RL is trading a heavy 2.8 million shares, double its average daily volume of 1.4 million shares.

  RL is part of the retail sector that has been hit hard in recent weeks.

  RL's stock fell in the morning to $74.81. It then trended mostly sideways through midday.

  Then in mid-afternoon, RL broke again to the downside. It closed near its low for the session of $73.82.

  Tape Action

  RL's tape action shows the recent block trades.

  One can see the price for the blocks declining from $76.55 in the prior session to as low as $73.94.

  A key bearish trade came in the morning when a block of 21,038 shares crossed the tape at $76.16.

  That was down from the prior block trade at $76.55 on 25,000 shares late on Monday.

  Business

  RL makes apparel, accessories and home furnishings. The company operates through three segments: wholesale, retail and licensing. Wholesale business consists of sales made to department stores and specialty stores around the world.

 Retail business consists of sales made directly to consumers through retail channel, which includes company's' retail stores, concession-based shop-within-shops and e-commerce operations around the world.

Licensing business consists of royalty-based arrangements.

Earnings:

  This fiscal year ending in March of 2017 analysts are forecasting a 12% decline in net to $5.62 a share from the $6.36 a year before.

  Going out to fiscal 2018 ending in March, the Street expects a 9% decline in net to $5.13 a share from the anticipated $5.62 a share this fiscal year.   

Charts:   

  RL's daily chart shows the stock cutting below key technical support with a pick up in volume. RL has been in a down trend since topping out at $187.49 in late 2014. It is off more than 50%.

  RL's 12-month performance chart shows the stock declining 13% versus an 19% gain for the stock market.

  Insiders have not been very active the past several months. Back in June of last year, one insider bought at $54.15. He sold the same day at $93.71.   

Strategy Opinion: TTD is targeting RL for a decline to $65 within the next few months, or sooner. A protective stop buy can be placed near $78.

Suitability: Aggressive Bears.

  TTD's special probability research of  stock's Prior Performance:  

Probability - Earnings Response -  Bearish. RL rose 6 out of the past 14 earnings reports.

Probability:  Seasonal Activity -- Bearish.    RL declined an average of 2.3%  in May the past five 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. - 2017

TTD columnist Leo Fasciocco has covered the stock market for over 30 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: Beverly 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.)