Daily - Go to TTD's Tape of  Stock Charts - Wednesday, May 18

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Wednesday, May 18

Ticker Tape Digest

Wednesday - May 18, 2011

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.

 1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays)  these 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.

  2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.

 3 - TTD's Bargain Buy Trades - Long - (Long Term long plays.  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.

  4 - 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 - 6

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side - Small number of breakouts and very selective. Stock market bounces back today. Bulls can be venturesome but only scale-in. Weekly indexes have turned down significantly.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bearish, Nasdaq Bearish

Market (Weekly) - NYSE Bearish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bearish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Wednesday - May 18

(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 )  

(See the Top Performing Breakout Stocks for 2011)

Today's Featured TTD Breakout Stock

Waste Connections Inc. WCN - 31.84, up 0.77 - Breakpoint 30.95

Profits to Rise 18% this year, TTD Targets 39

  WCN, based in Folsom, Ca., is a solid waste collection and disposal firm. Annual revenues: $1.3 billion. WCN, a conservative but steady climbing stock long-term, breaks out today from a seven-week, cup-and-handle base. The move carries the stock to a new all-time high. So far today, WCN is trading 1.2 million shares, double its normal daily volume of 515,000 shares.

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

  WCN's 10-minute chart shows the stock clearing its breakpoint in the morning. It moved comfortably above it and the gain in the afternoon. A solid looking breakout!

   TTD's clip of the tape shows the recent block trades.

  Late on Tuesday, a big block of 106,800 shares crossed at $30.97. That was down slightly from the prior block of $31.07.

  Then today the stock pushed higher. A key bullish trade came in the morning when a block of 3,608 shares crossed at $31.07. That put the stock in motion for the day.

  The stock has a beta of 0.63 versus 1.00 for the stock market. So, it is about half as volatile as the stock market.

WCN  is a regional, integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in the Western U.S.

 The company serves numerous commercial, industrial and residential customers in Washington, California, Idaho, Wyoming and South Dakota.

  WCN's 12-month performance chart shows the stock appreciating 35% versus an 18% gain for the S&P 500 index. The stock has been a steady climber.

  WCN's long-term chart shows the stock soaring from 9 back in 2002 to 31.  It remains in a steady up trend. The push to a new high could  bring in more buying on Thursday.   

  WCN's daily chart shows the stock climbing from 26 to 31. It formed a small, cup-and-handle base. Today's breakout is impressive coming with a widening of the spread. That shows "ease of price movement" which is bullish.

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

  The accumulation - distribution line (bottom of chart) is in a good up trend and actually broke out before the price of the stock. That shows good underlying buying.

  This year, analysts forecast an 18% jump in earnings to $1.46 a share from $1.24 a year ago. The stock sells with a price-earnings ratio of 21. TTD sees that as reasonable. The market will pay up for good earnings stability.

  Going out to 2012, net is expected to climb 16% to $1.70 a share from the anticipated $1.46 a share.

  The company posted an 8% gain in revenues for the quarter. It also benefited from cost cutting measures.

  WCN's net for the upcoming second quarter should rise 17% to 38 cents a share from 32 cents a year ago. The highest estimate on the Street is at 39 cents a share. TTD sees chances for a modest upside surprise. The past three quarters, WCN topped the consensus estimate by 2 to 1 cent a share.

  Strategy Opinion: WCN is a solid breakout play most suitable for conservative investors. TTD is targeting WCN for a move to 39 within the next few months. A protective stop can be placed near 28. TTD rates WCN an above average intermediate-term play.

  Sponsorship: Excellent. Out of the top 14 fundholders, 13 have a 4-star rating or better. The largest fundholder is T. Rowe Price New Horizons Fund with a 3.1% stake. It has held its position steady. A key buyer recently was 4-star rated RS Parners which purchased 1.3 million shares. WCN has 113.6 million shares outstanding.

  Insider Activity:  Neutral. Insiders were recent buyers using stock options. They turned around and sold. The latest selling was at $30.73. Seven analysts follow the stock, 6 have a buy, the same as 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 - 7

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Small number of breakdown stocks today as stock market rallies broadly. Bears be selective.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Citi Trends Inc. (CTRN) - 17.24, down 4.171.40

Posts Weak Earnings, TTD Sees Decline to 14

CTRN, based in Savannah, Ga., is producer of steel products in Latin America. Annual revenues: $622 million. CTRN's stock falls sharply with a gap move and heavy volume today. The move was triggered by CTRN showing weak quarterly earnings. So far today, CTRN is trading a heavy 1.7 million shares, 26 times its average daily volume of 65,000 shares. TTD sees more on the downside.

  CTRN reported earnings for the fiscal first quarter ending April 30 declined to 83 cents a share from 86 cents a year ago. The 83 cents was well below he consensus estimate of 87 cents a share. The lowest estimate on the Street was 79 cents a share.

  Adding to the bearish sentiment was that CTRN lowered its outlook for the year. The company said net for the year would be $1.25 to $1.35 a share. That compares with current Street estimate of $1.50 a share. A year before in fiscal 2011 ending in January, CTRN earned $1.44 a share.

  The tape action showed bearish institutional activity. A key trade in the morning came when 100,000 shares crossed the tape at $17.19. That was down from the prior block trade that crossed at $18.50.

 CTRN is the leading producer of flat and long steel products of  Latin America. It has operations in Hylsa in Mexico, Siderar in Argentina and Sidor in Venezuela.

   CTRN's daily chart shows the stock declining from 34 to 20. It then tried to form a bottom. However, today it gaps lower on big volume. The stock's TTD momentum indicator (top of chart) has been bearish for about three weeks.

   Strategy Opinion: TTD is targeting CTRN for a decline to 14 within the next few months, or sooner. A protective stop buy can be placed near 18.10.

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.

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.)