Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, February 3, 2016
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Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, February 3, 2016 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 1, 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 - 5
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Bulls go slow. Stock market mixed as oils lift the Dow. Market still in down trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - KMB - AVERAGE |
KMB, based in Dallas, produces personal care and consumer tissue. Annual revenues: $18.6 billion. KMB's stock breaks out from a six-week flat base Wednesday. The move carries the stock to a new all-time high. KMB came public in 1970. 
So far today, KMB is trading 2.5 million shares. Its average daily volume is 2.6 million shares.
KMB's stock rose steadily during the day even though the stock market sold off in the morning.
When the market rallied in the afternoon, KMN pushed higher and cleared its breakpoint line. (see 10-minute chart) 
Although, KMB is an average big cap breakout with modest earnings growth, the tape action showed significant institutional accumulation
TTD's clip of the tape shows KMB's big block trades.
One can see the price for the blocks climbing from $127.81 in the prior session to as high as $130.37.
There were two key bullish block trades.
The first came late on Tuesday when a block of 112,557 shares crossed the tape at $128.01.
That was up from the prior block at $127.81 on 26,000 shares.
The second was when a block of 157,901 shares crossed near the close Wednesday at $130.37
That was up from the prior block at $129.35 on 25,000 shares.
So, the tape showed big institutional accumulation.
KMB makes personal care, consumer tissue, and K-C professional products worldwide.
It operates through three areas: Personal Care, Consumer Tissue, and K-C Professional.
The Personal Care unit sells disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise, and other brands.
The Consumer Tissue unit sells facial and bathroom tissue, paper towels and napkins under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve names.
The K-C Professional segment sells apparel, wipers, soaps, sanitizers, tissues, and towels under the Kleenex, Scott, WypAll, Kimtech, and Jackson Safety brands.
KMB's 12-month performance chart shows the stock appreciating 18% versus an 8% drop in the stock market.
KMB's long-term chart shows the stock reaching a peak in 2007 at 69. The stock then fell back to 41 by early 2009 due to the bear market.
Since then KMB's stock has been trending steadily higher. The push to a new high Wednesday could bring in more buying from those investors favoring a conservative big cap play.
KMB's daily chart shows the stock working higher from 105 in September to a peak near 129 by late December.
The stock then put down a flat base.
The breakout just clears the base.
KMB has a beta of 0.31 versus 1.00 for the stock market. So, the stock is not that volatile.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has pushed to a new peak confirming the breakout.
This year, analysts are forecasting a modest 6% rise in net to $6.10 a share from $5.76 a year before.
The stock sells with a price-earnings ratio of 21. That is high given the earnings growth rate. 
Looking out to 2017, the Street predicts an 8% increase in net to $6.59 from the anticipated $6.10 this year.
Net for the upcoming first quarter is expected to be up 7% to $1.52 a share from $1.42 the prior year period.
The company has topped the Street estimate four out of the past six quarters.
Going out to the second quarter net is projected to be up 5% to $1.48 a share from $1.41 a year before.
Strategy Opinion: KMB is most suitable for conservative investors. TTD is targeting KMB for a move to $142 within the next few months or sooner.
A protective stop can be placed near 126.
TTD rates KMB an average intermediate-term play.
Sponsorship: Average. The largest fund buyer recently was the JP Morgan Equity Income Select Fund which purchased 265,673 shares. It has a 0.23% stake.
However, the 5-star rated VA CollegeAmerica Income Fund of American 529E was a recent seller of 2.2 million shares. It has a 0.6% stake.
KMB has 361 million shares outstanding. Institutions hold 69% of the stock and insiders 1%.
Insider Activity: Slightly Bearish. Light insider selling the past few months.
Currently, 15 analysts follow the stock, 6 have a buy, up from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Kimberly Clark Corp - (KMB) |
| 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 | 9 | 0 | 5 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - LTC - AVERAGE |
| TTD's Quality Rating of Stock - KIM - AVERAGE |
| TTD's Quality Rating of Stock - AEM - BELOW AVERAGE |
| TTD's Quality Rating of Stock - OCLR - BELOW 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts Wednesday. Stock market rallies to finish mixed with blue chips rebounding.
TTD's short from Tuesday was Axovant Sciences (AXON) at 13.46. Wednesday the stock falls to 13.25 and is working well for bears.
MPLX, based in Findlay, Ohio, operates pipelines and other midstream assets to transport and store crude oil, refined product, and other hydrocarbon products in the U.S. Annual revenues: $573 million. MPLX's stock breaks hard to the downside setting of a short play. 
TTD highlighted MPLX as a short at our midsession video show on the Web Wednesday.
The drop was linked to MPLX disclosing it will cut its payout distribution in half to 12% to 15% for the year.
MPLX's stock gapped lower in the morning. The stock then trended steadily lower through the session. It touched its intraday low in the last hour at 20.41.
MPLX's tape action shows the recent block trades.
One can see the price for the blocks falling from 29.12 in the prior session to as low as $22 Wednesday.
A key bearish trade came in the morning when a block of 27,500 shares crossed the tape at $25.50.
That was down sharply from the prior block at $29.12 on 551,074 shares.
The company owns a 99.5% interest in an entity, which operates a pipeline systems that covers 1,004 miles of carrier crude oil pipelines; and 1,902 miles of common carrier product pipelines in 9 states.
MPLX also holds a 100% interest in butane cavern in Neal, West Virginia with 1 million barrels of storage capacity.
In addition, the company operates crude oil and product pipelines owned by third parties.
This year, analysts are forecasting a 16% drop in earnings to $1.56 a share from the $1.85 in 2015.
MPLX's daily chart shows the stock trending lower from 50 down to around 27. The stock tried to hold support after a rally in December. However, the stock gaps lower on Wednesday with a big pick up in volume.
Strategy Opinion: TTD is targeting MPLX for a decline to 18 within the next few months, or sooner. A protective stop buy can be placed near 23.30.
| TTD's Quality Rating of Stock - MPLX - 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.)
