Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, May 18, 2016
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Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, May 18, 2016 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 16, 2016 |
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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 trades. We also feature stocks under Significant Accumulation that are poised to breakout.
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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.
Breakout Stocks
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list shows some good looking breakout plays. Bulls can be venturesome. Stock market in a trading range.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - LOW - ABOVE AVERAGE |
LOW, based in Mooresville, N.C., is a retailer of home improvement products. Annual revenues: $59 million. LOW's stock breaks out Wednesday from a seven-month, cup and handle base. The move caries the stock to a new high. That is bullish. 
So far today, LOW is trading a heavy 13.7 million shares, triple its average daily volume of 4.3 million shares.
LOW checked in with earnings for the first fiscal quarter ending in April of 87 cents a share. That topped the Street consensus estimate of 85 cents a share. It also had a special gain of 11 cents a share bring total net to 98 cents a share. 
The stock responded to the news by driving higher in the morning and clearing its upside resistance line.
LOW reached an intraday peak of 79.49 around noon.
It then pulled back slightly and trended sideways into the final bell.
LOW's tape action shows the recent block trades.
One can see the price for the blocks climbing from $76.07 in the prior session to as high as $78.70 Wednesday.
A key bullish trade came near the close Wednesday when a block of 429,461 shares crossed the tape at $78.60.
That was up from the prior block trade at $78.47 on 42,589 shares.
LOW It offers products for home maintenance, repair, remodeling, and decorating.
The company sells lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, lawn and garden items paint, flooring, millwork, kitchens, outdoor power equipment, and home fashions.
It also offers installation services through independent contractors in various product categories.
The company has 1,857 home improvement and hardware stores in the United States, Canada, and Mexico.
LOW's 12-month performance chart shows the stock appreciating 11% versus a 4% decline for the stock market.
LOW's long-term chart shows the stock reaching a peak of 35.74 in early 2007, the top in the prior bull market.
The stock then pulled back due to the bear market. Later it trended in a range until it broke out in 2012 at $31. It has since more than doubled.
LOW's daily chart shows the stock advancing from 53 back in February to around 72.
The flat base is ideal in structure and above the rising 50-day moving average line.
The breakout comes with a gap move and expanding volume.
LOW's CCI momentum indicator is strongly bullish.
The accumulation - distribution line (bottom of chart) is bullish.
This fiscal year ending in January of 2017, the Street looks for a 21% jump in net to $3.99 a share from $3.29 the year before.
The stock sells with a price-earnings ratio of 19. TTD sees that as reasonable. 
Going out to fiscal 2018 ending in January, profits are projected to climb 16% to $4.62 a share from the anticipated $3.99 this year.
Net for the upcoming fiscal second quarter ending in July should be up 17% to $1.40 a share from $1.20 the prior year.
Strategy Opinion: TTD is targeting LOW for a move to 92 off this breakout. A protective stop can be placed near 78 which is tight.
TTD sees LOW as a good intermediate-term play for conservative investors.
Sponsorship: Good. A key fund buyer recently was the 5-star rated JPMorgan US Equity Inst. Fund which purchased 326,653 shares. It has a 0.5% stake.
However, there was a key seller. The 5-star Vanguard Wellington Fund unloaded 2.4 million shares. It still has a 0.7% stake.
LOW has 897 million shares outstanding. Institutions hold 77% of the stock and insiders 1%.
Insider Activity: Slightly Bearish. Insiders were recent buyers using stock options at $25 a share. They were sellers at $76.
Currently, 27 analysts follow the stock, 21 have a buy, the same as three months ago.
LOW has a book value of $8.41 a share.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Lowes Cos. - (LOW) |
| 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 - SBCF - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - PLPM - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - NICE - AVERAGE |
| TTD's Quality Rating of Stock - MZOR - 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Large list of shorts with some stocks down on weak earnings. Bears be selective. Stock market remains in a trading range.
TTD's short from Tuesday was Red Robin Gourmet Burgers (RRGB) at 50.74. Today, RRGB has declined to 48.19 and is working well for bears.
CTRN, based in Savannah, Ga., sells off-price clothes. Annual revenues: $684 million. CTRN's stock falls sharply Wednesday after coming in with disappointing earnings for the fiscal first quarter ending in April. So far today, CTRN is trading a heavy 477,488 shares, six times its average daily volume of 82,000 shares. 
TTD highlighted CTRN as a short at our midsession video show on the Web Wednesday.
The company came in with fiscal first quarter earnings of 60 cents a share, down from 74 cents a year ago.
The results fell short of Street estimates at 76 cents a share.
CTRN's stock gapped lower in the morning touching an intraday low of 14.01.
The stock bounced up to around 15, but then faded back again.
CTRN's tape action shows the recent block trades.
One can see the price for the blocks falling from $16.11 in the prior session to as low as $14.27 Wednesday.
A key bearish trade came in the morning when a block of 4,100 shares crossed at $14.50. That was down sharply from the prior block trade at $16.11 on 4,457 shares.
The company offers sportswear for men, women, and children, as well as offerings for newborns, infants, toddlers, boys, and girls/.
It also sells handbags, jewelry, footwear, belts, intimate apparel, scrubs, and sleepwear; and decorative home products.
This fiscal year ending in January of 2018, analysts have been forecasting a 16% rise in net to $1.19 a share from $1.03 a year before. However, that forecast will come down.
CTRN's daily chart shows the stock gapping lower and through support. The stock's CCI momentum indicator (bottom of chart) is in a down trend.
Strategy Opinion: TTD is targeting CTRN for a decline to 11 within the next few months, or sooner. A protective stop buy can be placed near 16.
| TTD's Quality Rating of Stock - CTRN - BELOW AVERAGE |
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: 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.)
