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 Accumulation Trades.
We also feature stocks under Significant Accumulation that are poised to breakout.
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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (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 - 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 email@example.com.
For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Thursday - February 8, 2018
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts so far today - 3
Quality of Breakouts - Average
Stocks Screened - 12,234
Bull side - Small list of breakouts. Bulls be conservative as stock market tries to stabilize.
Stock market - Bearish. All major market averages are bearish both daily and weekly. The monthly trend remains bullish. Bulls be conservative now and watchful. The daily averages will need to make a bottom. Also, earnings will be coming and will have an impact.
Stock Market Momentum
(Daily is based on a moving average)
Dow - Bearish
Dow - Bearish
Dow - Bullish,
Nasdaq - Bearish
Nasdaq - Bearish
Nasdaq - Bullish
S&P 500 - Bearish
S&P 500 - Bearish
S&P 500 - Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - GRUB - ABOVE AVERAGE
GRUB, based in New York, provides an online and mobile service for restaurant pick-up and delivery orders. Annual revenues: $493 million. GRUB's stock surges higher Thursday and breaks out from an eight-week flat base.
So far today, GRUB is trading a heavy 13.6 million shares, nine times its average daily volume of 1.5 million shares.
TTD highlighted GRUB as a breakout at our midsession video show on the Web Thursday.
The stock was one of the few breakouts. The driver was favorable earnings and good deal with Yum Brands Inc.
GRUB drove higher in the morning and reached an intraday peak of $94.89. The stock then pulled back and trended mostly sideways the rest of the day.
It was impressive that the stock did not yield ground as the stock market took its 1,032 point dive in the Dow industrials.
GRUB's tape action shows the recent block trades.
One can see the price for the blocks surging from $69.91 in the prior session to as high as $92.08.
A key bullish trade came in the morning when a block of 124,110 shares crossed the tape at $85.
That was up sharply from the prior block trade at $69.91 on 52,276 shares.
The stock closed strong on a block of 66,866 shares (duplicated) that crossed at $89.04.
That was up from the prior block at $88.38 on 41,700 shares.
GRUB's operates include Grubhub and Seamless Mobile Applications and Mobile Website.
The company is connected with some 50,000 local restaurants with diners in more than 1,100 cities across the U.S.
In certain markets, the company also provides delivery services to restaurants on its platform that do not have their own delivery operations.
GRUB provides diners on the platform with information that helps them search for local restaurants and then place an order from an Internet-connected device. It also provides diners with information about their orders and status.
GRUB announced a partnership deal with Yum Brands Inc. Yum will acquire $200 million worth of shares of GRUB
The deal is aimed at driving online sales to Yum's units KFC, Taco Bell, Pizza Hut and its other restaurants.
GRUB's 12-month performance chart shows the stock surging 75% versus an 18% gain for the stock market.
Insiders have been steady buyers at $6.18 to $38.20 a share using stock options.
They have been sellers $67 to $73 a share.
GRUB's long-term chart shows the stock coming public in April of 2014 at $40.80. The stock eventually fell back to $17.77 in early 2016.
However, since then GRUB has been driving strongly higher. It has made about a fourfold move from its low in 2016.
GRUB's daily chart shows the stock climbing from $50 back in October to a peak at $84 by December.
The stock then put down a flat base. It broke out in January, but then faded back.
Thursday's breakout comes with a gap move, big widening of the daily spread and big volume.
That of course was due to the deal.
The stock's CCI momentum indicator (bottom of chart) is strongly bullish.
GRUB came in with net for the fourth quarter of 37 cents a share, excluding items. That topped the consensus estimate of 31 cents a share. Revenues surged 49% for the quarter.
This year, analysts have been forecasting a 32% surge in net to $1.58 a share from the $1.20 for 2017. The 2018 estimates may be boosted by analysts in coming days.
Net for the upcoming first quarter should climb 28% to 37 cents a share from the 29 cents the year before.
Strategy Opinion: TTD is targeting GRUB for a move to $105 within the next few months, or sooner. A protective stop can be placed near $84.
TTD rates GRUB a very good intermediate-term play due to its YUM deal.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success - Bullish. GRUB has scored some good gains off its recent breakouts.
Probability - Earnings Response - Bullish. GRUB rose 7 times after the past 11 earnings reports when there was a significant change.
Probability: Seasonal Success - Extremely Bullish. GRUB rose an average of 13.6 in February and 2.9% in March the past several years.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A.
Date of Breakout
Break point Price
Stocks Price Peak after Breakout - prior to cut below 50-day M/A
Date Trade Closed
(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
|TTD's Breakout Profile Rating
GrubHub Inc. (GRUB)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - BLBD - ABOVE AVERAGE
TTD's Quality Rating of Stock - HLG - 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 - 14
Stocks Screened - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Large list of shorts as stock market falls sharply. Bears can be venturesome. However, the market is extended to the downside.
TTD's short from the prior session was Brinks Co. (BCO) at $75. Thursday, BCO drop's $1.90 to $73.10 and is working well for bears.
PLUS, based in Herdon, Va., sells and leases information technology products. Annual revenues: $1.3 billion. PLUS's stock falls sharply Thursday after reporting disappointing profits for the fiscal third quarter ended in December. TTD sees more on the downside.
TTD highlighted PLUS as a short at our midsession video show on the Web Thursday
So far today, PLUS is trading a heavy 315,972 shares, four times its average daily volume of 69,000 shares.
EPLUS rose in the morning reaching a peak of $82.05.
However, the stock reversed and fell sharply to $67.65.
The stock staged a slight bounce later in the morning, but then pulled back and trended sideways the rest of the day. It was unable to rally effectively.
PLUS's tape action shows the recent block trades.
One can see the price for the blocks tumbling from $82.05 in the morning to as low as $68.05.
A key bearish trade came in the morning when a block of 48,960 shares crossed the tape at $68.05.
That was down from the prior block at $68.60 on 1,168 shares.
PLUS provides leasing, financing and managed information technology services. It operates through two segments: technology and financing.
The technology unit sells information technology hardware, third-party software and maintenance contracts.
The financing unit operations consists of the financing of information technology equipment, software and related services.
This fiscal year ending in March analysts are forecasting an 11% rise in net to $4 a share from $3.60 the year before.
PLUS's daily chart shows the stock cutting below key technical support with expanding volume.
PLUS's 12-month performance chart shows the stock up 17% versus an 18% gain for the stock market. However, the stock's performance has been falling sharply since November.
Strategy Opinion: TTD is targeting PLUS for a decline to $60 within the next few months, or sooner. A protective stop buy can be placed near $73.
Suitability: Average Bears.
TTD's special probability research of Prior Performance:
Probability - Earnings Response - Bullish. PLUS rose 8 times after the past 12 earnings reports when there was a significant change.
Probability: Seasonal Activity - Bullish. PLUS rose an average of 2.3% in February and 4% in March the past several years.
TTD's Quality Rating of Stock - PLUS - BELOW AVERAGE
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been 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.
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(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.)