Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 22 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, February 21 |
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.
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 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 - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts, but some good looking plays. Bulls can be venturesome. Stock market holds in up trend with momentum still bullish.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
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 - CLH - AVERAGE |
CLH, based in Norwell, Ma., is a diversified firm providing services in the environmental, energy and industrial markets. Annual revenues: $1.9 billion. CLH's stock breaks out today from an eight-week flat base. The stock push higher today was propelled by strong than expected fourth quarter earnings. So far today, CLH is trading 970,468 shares, triple its normal daily volume of 267,000 shares.
TTD highlighted CLH as a breakout at our midsession video show on the Web Wednesday.
CLH's 10-minute chart shows the stock spiking higher in the morning on big intraday volume. The stock hit an intraday peak of 71.63. It then backed off a bit and trended sideways the rest of the day.
The surge was triggered by CLH reporting fourth quarter earnings jumping to 72 cents a share from 44 cents a year ago. The 72 cents topped the consensus estimate of 48 cents a share and also the highest estimate on the Street of 51 cents a share.
TTD has noted previously when a company can report net above the highest estimate and the stock responds bullishly, the issue can push higher for the next few weeks. We see that potential here.
CLH's tape action shows the recent big block trades.
One can see the price for the blocks jumping from $65.17 on Tuesday to $70.56 early on Wednesday.
That $70.56 block came on 9,972 shares. That showed aggressive institutional buying.
CLH provides environmental services to a diversified customer base in the United States and Puerto Rico.
The company is managed on a regional basis and has some 50,000 customers. It provides environmental, energy and industrial services.
CLH's 12-month performance chart shows the stock appreciating 50% versus a 5% gain for the S&P 500 index.
CLH's long-term chart shows the stock soaring from 2 back in 2003, adjusted for a 2-for-1 stock split, to a peak of 41 in 2008. The stock then pulled back during the bear market to 20. However, since that point the stock has soared making a three-fold move. The push to a new high could bring in more buying on Thursday.
CLH's daily chart shows the stock basing for a about two months. It had a breakout in early February, but faded back. TTD set up a breakpoint zone. CLH gaps through it to the upside.
The base was set up above a rising 50-day moving average line. The stock was in a mild up trend.
CLH's TTD momentum indicator (top of chart) is very strong.
The accumulation - distribution line (bottom of chart) is trending sideways. It shows that there was modest buying in the base prior to the breakout. So, the strong earnings news came as a surprise.
This year, analysts are forecasting a 19% gain in earnings. The current estimate is at $2.50 a share. However, TTD sees that being boosted following the strong results for 2011.
Looking ahead to the first quarter, analysts predict a 36% jump on net to 59 cents a share from 43 cents a year ago. So, the pace of strong earnings should continue. The highest estimate on the Street for the quarter is at 68 cents a share. TTD sees excellent chances for an upside earnings surprise.
The company has tended to top the consensus by more than 10 cents a share. See earrings table.
Strategy Opinion: TTD is targeting CLH for a move to 85 off this breakout. A protective stop can be placed near 65. TTD rates CLH a good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund holder is 5-star rated T. Rowe Price New Horizons Fund with a 4.4% stake. It was a recent buyer of 111,658 shares.
Also, 4-star rated American Century Heritage Fund was a recent purchaser of 185,200 shares. It has a 1% stake. CLH has 53.1 million shares outstanding. Institutions hold 85% of the stock.
Insider Activity: Bearish. Insiders have been sellers the past few months. The latest selling was at $60.42. Some insiders have exercised options at $6.49. Currently, 10 analysts follow the stock, 6 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Clean Harbors Inc. - (CLH) |
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 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - HSTM - AVERAGE |
TTD's Quality Rating of Stock - INTU - AVERAGE |
TTD's Quality Rating of Stock - ROST - AVERAGE |
TTD's Quality Rating of Stock - MJN - 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 - Just a few breakdown stocks today. Bears remain conservative and selective. TTD's short from Tuesday was Skywest (SKYW) at 12.25. So far today the stock has declined to 12.19 and is working fine for bears.
WBMD, based in New York, provides health information services to medical professionals. Annual revenues: $576 million. WBMD, a stock that has been trending lower, breaks down today from a bottoming pattern. The drop comes on volume of 914,242 shares, almost double its normal daily volume of 592,000 shares. Analysts are forecasting a big drop in WBMD's net this year.
TTD featured WBMD as a short at our midsession video show on the Web Wednesday.
WBMD's stock gapped lower in the morning. It hit an intraday low of 25.41. The stock lifted a bit and then trended sideways the rest of the session unable to mount a comeback.
WBMD's tape action shows the recent block trades. One can see the price for the blocks declining from $27.31 to $26.18. A key bearish trade came when a block of 10,090 shares (duplicated) crossed the tape at $26.35. That was down sharply from the prior block trade at $27.31.
WBMD provides its medical information through public and private sites, mobile platforms and publications.
This year, analysts are forecasting a 66% drop in earnings to 35 cents a share from $1.05 a year ago. Net for the first quarter is expected to plunge 88% to 2 cents a share from 19 cents a year ago.
WBMD's daily chart shows the stock with a big gap drop in January. The stock then trended sideways. However, today it breaks sharply below key technical support. The stock's accumulation - distribution line was improving. So, the decline in the price of the stock would appear to have come as a surprise.
Strategy Opinion: TTD is targeting WBMD for a decline to 21 within the next few months, or sooner. A protective stop buy can be placed near 27.40.
TTD's Quality Rating of Stock -WBMD - 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: 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.)