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Aggressive Investor Bullish- Go To TTD Quick Trade Setups (win rate 70%) - Wednesday, February 10 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 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.
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.
Stocks Screened - 8,200
Bull side - Just a few breakouts again today. However, some good plays. Bulls remain careful and be selective in going long One should continue to honor all stops. Stock market has potential to set up a trading range.
(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
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TTD's Quality Rating of Stock - BIDU - ABOVE AVERAGE |
BIDU, based in China, is a Chinese-language Internet search provider. Annual revenues: $651 million. BIDU's stock breaks out from a three-month flat base. The driver for the move was a report of stronger than expected fourth quarter earnings. The firm reported a 48% gain in net topping the Street's consensus estimate of a 38% increase. BIDU is trading 5.4 million shares so far today, almost double its normal daily volume of 2.8 million shares.
TTD highlighted BIDU as a breakout at our midsession show on the Web today.
BIDU's 10-minute chart shows the gap move higher today. The stock drove through two breakpoints. The one at 469.18 was the key one. The stock held above the breakpoint in the afternoon. That was good follow through intraday action.
BIDU's clip of the tape shows the recent big block trades.
One can see the key trade came as the first one today when a big block of 27,868 shares, (duplicated) crossed at 472.61.
That was up sharply from the prior trade at $439. The price for the blocks did work higher after the initial big buy today.
BIDU conducts its operations in China through Baidu Online Network Technology (Beijing) Co., Ltd., its wholly owned subsidiary in Beijing, China.
The company also conducts operations in China through Baidu Netcom Science Technology Co., Ltd., which holds the licenses and approvals necessary to operate the Company’s Websites and provide online advertising services.
In January 2008, BIDU launched a Japanese search service at www.baidu.jp, run by Baidu Japan. The Company’s Japanese search services enable users to find relevant information online, including Web pages, images, multimedia files and blogs, through links provided on its Websites.
BIDU's 12-month performance chart shows the stock appreciating 250% compared with a 25% gain for the S&P 500 index. The stock is a leader.
BIDU's long-term chart shows the stock skyrocketing from its trading price of 81 back in 2005 to 481. The stock has made a new all-time high. That is very bullish and could well bring in more buying on Thursday from the "new-high crowd."
BIDU's daily chart shows the stock rallying from 280 up to 440. It set up a flat base and attempted a breakout in early January. That was after news that Google would leave China over a dispute.
However, the breakout for BIDU stalled and the stock faded back into the base. Today's breakout on the earnings news looks good and comes with an expansion in volume.
BIDU's TTD momentum indicator (top of chart) is neutral.
However, the accumulation - distribution line (bottom of chart) is in a strong up trend. That says the buying is very strong and there has been no significant selling in recent months.
BIDU reported fourth quarter net of $1.80 a share, a 48% gain. The Street consensus was at $1.68 a share for a 38% gain. BIDU's $1.80 a share also topped the highest estimate on the Street of $1.78 a share.
So, the net was a big surprise.
BIDU also boosted its revenue outlook for this year. The firm said revenues for 2010 should be $176 to $181 million. That would be up from a prior forecast of $169 million made by analysts.
Looking ahead to 2010, The Street is projecting a 43% jump in BIDU's profits to $8.75 a share. They see net for the upcoming first quarter surging 85%.
Strategy Opinion: BIDU is a classic leader breaking out on a big earnings surprise. TTD is targeting the stock for a move to 550 within the next few months, or sooner. A protective stop can be placed near 450. TTD rates BIDU an outstanding intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund buyer recently was 4-star rated T. Rowe Price Growth Stock Fund which purchased 374,800 shares. Another key buyer was Fidelity Contrafund, 5-star rated, which picked up 28,800 shares and 5-star rated Oppenheimer Developing Markets Fund adding 53,000 shares. BIDU has 34.8 million shares outstanding.
Insider Trading: Not available. Currently, 15 analysts follow the stock, 9 have a buy, up from 8 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Baidu Inc. - (BIDU) |
| 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 | 13 | 0 | 1 |
(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 - SNS - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - SFN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - ISLN - BELOW AVERAGE |
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 - 4
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral.
Bear Side - Only a few breakdown stocks today as stock market shows little change through most of the day. Bears remain alert and selective.
(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.)
ISIS, based in Carlsbad, Ca., develops drugs. Annual revenues: $119 million. ISIS's stock falls sharply today over concern about the company's experimental cholesterol treatment drug Mipomersen. The drug showed positive results but there was concern about side effects. Trading in ISIS swelled to 14.5 million shares, 14 times its normal daily volume of 1.1 million shares. 
ISIS fell sharply in the morning. It hit a low of 8.30. The stock then bounced up slightly and then trended sideways the rest of the day.
TTD's clip of the tape shows the big block trades the past few days.
A key trade was a big block of 100,000 shares that crossed in the morning today at $9.16. That was down sharply from the prior block trade at $11. The tape action indicated aggressive selling in the morning.
The price for the blocks lifted later showing some accumulation.
The Company operates in a two principal segments: Drug Discovery and Development and Regulus Therapeutics Inc.
Within the Drug Discovery and Development segment, its drug discovery platform enables the Company to identify drugs, providing potential targets to treat a range of diseases.
ISIS has 19 drugs in development. Its partners are licensed to develop, with the Company’s support, 15 of these 19 drugs. The Company and Alnylam established Regulus Therapeutics Inc. as a company focused on the discovery, development and commercialization of microRNA therapeutics.
This year, analysts forecast ISIS will show a loss of 31 cents a share compared with an anticipated loss of 13 cents a share for 2009.
ISIS' chart shows the gap drop on big volume. The stock's TTD momentum indicator (top of chart) has been bearish for a few weeks. The accumulation - distribution line broke down hard back in November.
Strategy Opinion: TTD is targeting ISIS for a decline to 7 within the next few months, or sooner. A protective stop buy can be placed near 10.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
