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
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.
Total Buy Breakouts so far today - 18
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls can be venturesome. Stock market holds up trend.
(Put mouse on chart to Nasdaq)
Environment for bulls: Bullish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - CIEN - ABOVE AVERAGE
CIEN, based in Hanover, Md., provides equipment and software to handle voice, video and data traffic on communications networks. Annual revenues: $2.6 billion. CIEN's stock pushes higher Monday and breaks out from an 11-week flat base.
So far today, CIEN is trading 3.5 million shares. Its average daily volume is 2.1 million shares.
TTD highlighted CIEN as a breakout at our midsession video show on the Web Monday.
CIEN's stock pushed higher in the morning clearing its breakpoint line. (see 10-minute chart)
The stock reached an intraday higher in the afternoon of $25.71.
The stock then gave a little ground near the close.
CIEN's tape action shows the recent block trades.
One can see the price for the blocks climbing from $24.98 in the prior session to as high as $25.68 on Monday.
A key bullish trade came in the morning when a block of 22,792 shares crossed the tape at $25.25.
That was up from the prior block trade at $24.98 on 63,221 shares.
Near the close a block of 111,177 shares (duplicated) crossed at $25.54. That came on a down tick sequence started at $25.55.
So, that would indicate some profit taking.
CIEN provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services.
It provides equipment, software and services that support voice, video and data traffic on communications networks.
It segments include networking platforms; software and services.
The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios.
CIEN offers consulting and support services for customers.
CIEN's 12-month performance chart shows the stock appreciating 32% versus a 22% gain for the stock market.
Insiders were buyers late last year using stock options. The price was not disclosed. They were quite a few getting stock options. The also turned around and sold at $17 to $24 a share.
CIEN's long-term chart shows the stock reaching a peak of $49.55 back in 2007, the top in the prior bull market.
The stock then fell back to $4.98 by early 2009 due to the bear market. It then rallied to the high-20s and the past few years has been in a trading range between $28 and $16. A breakout from the long-term range would be very bullish.
CIEN's daily chart shows the stock climbing from $18 in November to a peak near $25.
The stock then put down a tight flat base above its rising 50-day moving average line.
The breakout Monday looks solid coming with a pick up in volume.
The stock's CCI momentum indicator is bullish.
This fiscal year ending in October analysts project a 26% jump in profits to $1.40 a share from $1.11 a year ago.
The stock sells with a price-earnings ratio of 17. TTD sees that as reasonable.
Going out to fiscal 2018 ending in October, the Street looks for a 12% rise in net to $1.56 a share from the anticipated $1.40 this fiscal year.
Profits for the upcoming fiscal first quarter ending in January should soar 150% to 20 cents a share from 8 cents a year before.
CIEN should report on March 2. The company topped the Street estimate six out of the past eight quarters. Its best beat recently was by 4 cents a share, or 20%
The stock drove sharply higher after its report in December. (see daily chart).
Profits for the fiscal second quarter should climb 35% to 33 cents a share from 24 cents a year ago.
Strategy Opinion: TTD is targeting CIEN for a move to $32 off this breakout. A protective stop can be placed near $24. TTD rates CIEN a good intermediate-term play provided earnings meet expectations.
Suitability: Average Bulls.
TTD's special research of CIEN's stock Prior Performance after a Breakout:
TTD's research shows that recently (see table) CIEN has been able to get just modest gains off its breakouts. However, the stock is now coming up to long-term resistance at 26. If it clears that it could do much better. Also, February tends to be CIEN's best performance month.
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
|12/8/2016||23.54||25.54||Still in play|
(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
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock -FDC - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - EA - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - MHLD - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - JPM - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks Monday as stock market rallies strongly. Bears be conservative and patient.
HAIN, based in Lake Success, N.Y., makes and sells a wide variety of foods. Annual revenues: $2.9 billion. HAIN's stock falls sharply Monday after being a target of an SEC accounting investigation. TTD sees more on the downside.
TTD highlighted HAIN as a short at our midsession video show on the Web Monday.
So far today, HAIN is trading a heavy 11.5 million shares, 11 times its average daily volume of 1.1 million shares.
The stock fell steadily in the morning touching an intraday low of $32.87.
The stock then lifted to around $35 by noon and then trended sideways the rest of the day.
HAIN's tape action shows the recent block trades.
One can see the price for the blocks falling from $38.53 in the prior session to as low as $33.13 Monday.
A key bearish trade came in the morning when a massive block of 90,367 shares (duplicated) crossed the tape at $33.86.
That was down from the prior block trade at $38.53 on 47,406 shares late on Friday.
HAIN sells organic and natural food products under a variety of brand names.
Its grocery products include cereals, oil, pasta, condoments, beverages and frozen foods.
Analysts are forecasting a profit of $2.13 a share for the fiscal year ending in June of 2017. Results for 2016 have not yet been reported. That is being checked by the SEC for accounting problems.
Net for the second quarter ending in December is expected to rise 4% to 59 cents a share from 57 cents the year before.
HAIN's daily chart shows the stock with a big gap drop back in August. The stock then trended sideways. That was due to the need to resolve accounting problems.
Monday's gap drop comes with heavy volume Monday. The stock's CCI momentum indicator is very bearish.
HAIN's 12-month performance chart shows the stock declining 2% the past 12 months compared with a 22% rise in the stock market. One can see the big drop in performance back in August.
Insiders were buyers in early 2016 using stock options at $5.88. They were big buyers again in November at $9.10. In all two insiders bought 500,000 shares. They have not done any selling.
Strategy Opinion: TTD is targeting HAIN for a decline to $29 within the next few months, or sooner. A protective stop buy can be placed near $36.70.
Suitability: Aggressive Bears.
|TTD's Quality Rating of Stock - HAIN - 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 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.)