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Aggressive Investors Bullish - Go To TTD Pre-Market Opening Breakout Watch  List - Friday, February 5

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Aggressive Investor Bullish- Go To TTD Quick Trade Setups (win rate 70%) - Friday, February 5

Conservative Investors  Bullish (swing traders) - Go To TTD Bargain Trade Setups - Monday, February 1 - Weekly

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Ticker Tape Digest

Friday - February 5, 2010


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.

Ticker Tape Digest's Trading Strategies Overview and Performance

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"  (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets

 (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)


Conservative Bearish Investors  (swing traders).  "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend.

  (See Performance)

 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  These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.

   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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.

 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.

Quote or chart

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 - 4

Stocks Screened - 8,200

Bull side - Just a few breakouts today. Stock market rallies to cut its loss today. Bulls remain careful and continue to honor all stops. Because all time indicators are bearish, TTD has moved to "Neutral" on the Long-term. February tends to be a bearish month. However, be alert for "special situation" buys.

(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 Bearish, Nasdaq Bearish


Today's Featured Breakout Stock

Resmed inc. (RMD) - 53.57, up 2.64 - Breakpoint 53.38

Quarterly Profits Top Estimates, TTD Targets 62

                    TTD's Quality Rating of Stock - RMD - ABOVE  AVERAGE

  RMD, based in Poway, Ca., makes products to help those with sleeping problems. Annual revenues: $1 billion. RMD's stock breaks out from a 9-week flat base today and hits a three-year high. The stock hit a high of 55.50 during the day so far. Its all-time high is 56.16 set in early 2007. So, the stock is close to making an all-time. That would be very bullish. The drive for today's gain: Strong quarterly earnings.

  RMD's 5-minute chart shows the stock with a gap breakout to the upside in the morning. The stock then faded back during the day as the stock market came under heavy selling pressure.

  The stock, however, is starting to pick up some buying.

  So far today, RMD is trading 2.5 million shares, four times its normal daily volume of 609,000 shares.

  TTD highlighted RMD as a breakout at our midsession show on the Web Friday.

  RMD came in with net for the fiscal second quarter ended Dec. 31 of  60 cents a share, up from 44 cents a year ago.

  The 60 cents topped the consensus estimate on the Street of 55 cents a share and also the highest estimate of 58 cents a share. TTD has said when a company can top the highest estimate on the Street the stock has potential to move higher on the news and for the next few weeks. TTD sees that possibility with RMD.

  TTD's clip of the tape shows RMD's big block trades near the opening today.

 One can see the price for the blocks jumping from $50.93 to $53 and then to $55.09 - the key trade which came on a big block of 52,900 shares. That showed good institutional buying interest.

  RMD makes medical equipment to manage sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea.

 It has developed nasal continuous positive airway pressure as a non-invasive treatment for OSA.

 CPAP systems deliver pressurized air, typically through a nasal mask, to prevent collapse of the upper airway during sleep.

 The Company has developed a number of products for SDB and other respiratory disorders, including airflow generators, diagnostic products, mask systems, headgear and other accessories.

 RMD sells its products in over 70 countries.

  RMD's nine-month performance chart shows the stock appreciating 35% compared with a 15% gain for the S&P 500 index.

    RMD's long-term chart shows the stock as a steady climber. It has bounced back strongly from the selloff during the bear market. Although earnings growth is not spectacular, the stock has been just that long-term.

  RMD's daily chart shows the stock climbing from 40 to 54. It then formed a flat base. The day before, Thursday, RMD's stock broke down with expanding volume, perhaps due to the big stock market selloff.

  This morning, its strong profits drove it up and out of the base with heavy volume. That was a bullish upside reversal.

  The stock's accumulation - distribution line (bottom of chart) is in an overall up trend.

  This fiscal year ending June 30, analysts forecast a 14% gain in net to $2.27 a share from $1.99 a year ago. Those estimates could be bumped up due to the good fiscal second quarter.

  RMD sells with a 24 price-earnings ratio. That is a bit high given the earnings growth. So, one does need to be watchful.

  Looking out to fiscal 2011 ending in June, the Street looks for net to rise 16% to $2.63 a share from the anticipated $2.27 in fiscal 2010.

  Strategy Opinion: RMD is a consistent stock. The potential for a new all-time plus today's upside earnings surprise shows the stock has some big plusses pushing higher. TTD suggests scaling into RMD. TTD is targeting RMD for a move to 62 within a few months, or sooner. A protective stop can be placed near 51. TTD rates RMD an average intermediate-term play.

  Sponsorship: Excellent. The largest fund holder is American Funds Growth Fund of America, 4-star rated, with a 4.9% stake. It was a recent buyer of 1 million shares. Two other American Funds a re big holders. RMD has 75 million shares outstanding.

  Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at 51. Right now, 12 analysts follow the stock, 8 have a buy, up from 7 three months ago.


  


  Stock Performance Chart for 9 months with Quarterly Earnings Markers.

    


TTD's Breakout Profile Rating

Resmed Inc.  - (RMD)  

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

All Timely Breakout Stocks From Tape Action Today

(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)


  


Charts of Selected Breakout Stocks

                    TTD's Quality Rating of Stock - MMS -  AVERAGE

                    TTD's Quality Rating of Stock - KELYA - BELOW AVERAGE

                    TTD's Quality Rating of Stock - PCYC - BELOW AVERAGE


 

Conservative Investors Bearish (swing traders) - Go To TTD Bargain Short Trade Setups - Monday, February 1 - Weekly

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Ticker Tape Digest’s

Stocks To “Sell Short”

Ticker Tape Digest’s Daily List of “Stocks To 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 - 20 = the max.

Stocks Screened - 8,200

Long-Term Environment for bears: Neutral.

Bear Side - Large number of breakdown stocks - the max. Stock market now in a second leg down. Bears continue to be aggressive looking for shorts with damaged fundamentals.  TTD short from Thursday was  Penn National Gaming Inc. (PENN) - 24.19, down 3.02. Today, PENN is down to 22.97 and working well for bears so far.


List of Stocks To Sell or Short

(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)

  


Commentary on TTD’s Feature Bear Play

Phase Forward Inc. (PFWD)  - 10.85, down 4.00

Lowers Earnings Outlook, TTD Sees Decline to 8

PFWD, based in Waltham, Mas., makes software used by the global clinical trial and drug safety monitoring associations. Annual revenues: $202 million. PFWD's stock falls sharply today after the company reported disappointing results and lowered its forecast for the new year. PFWRD gaps below key support today. Volume swells to 6.9 million shares, 23 times its normal daily volume of 327,000 shares. The stock is extended to the downside, but TTD sees more for bears.

  PFWD reported a fourth quarter breakeven compared with a profit of 6 cents a share a year ago. The Street was expecting a profit of 8 cents a share. So, the results were a big disappointment.

  For 2010, the company projected a profit of 26 cents a share to 32 cents.

  The consensus estimate on the Street was at 33 cents a share. The lowest estimate 31 cents a share. So, the year forecast was a disappointment. The stock reacted bearishly to the bearish news.

  PFWD's stock gapped lower at the opening hitting a bottom at 10.52. It lifted slightly and then trended sideways the rest of the day, unable to rally effectively.

 The company's customers include pharmaceutical, biotechnology and medical device firms, as well as academic institutions, governmental regulatory agencies, contract research organizations.

 Its electronic data capture and clinical data management products are designed to provide clients with enterprise-level automation of paper-based clinical trial processes and to scale clinical trials involving clinical sites and patients worldwide.

 PFWD's chart shows the violent bearish reaction to the news. The tape action indicates a flight away from the stock. The accumulation - distribution line (bottom of chart) has broken sharply to the downside.

  Strategy Opinion:   TTD is targeting PFWD for a move to 8 within the next few months. A protective stop can be placed near 12.



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.”

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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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)