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
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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 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 - 4
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list remains small as stock market continues to decline. Market still remains vulnerable. Bulls must now be conservative and selective. Watch all stops. (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 Bullish, Nasdaq Bullish
Ticker Tape Digest's
(Go to Top Performing Breakout Stocks for 2011 - Update February 22)
TTD's Quality Rating of Stock - DTV - ABOVE AVERAGE
DTV, based near Los Angeles, operates digital television services. Annual revenues: $23.5 billion. DTV's stock breaks out today from a four-month, saucer basing pattern. The stock gapped higher in the morning after reporting favorable earnings. So far today, DTV is trading a heavy 12.3 million shares, double its normal daily volume of 4.8 million shares.
TTD highlighted DTV as a breakout at our midsession video show on the Web Wednesday.
DTV's 10-minute chart shows the stock rocketing higher in the morning off the earnings news.
The stock then drifted back as the stock market remained under heavy selling pressure.
DTV reported net for the fourth quarter of 74 cents a share compared with 48 cents a year ago. The 74 cents topped the consensus estimate of 62 cents a share and also the highest estimate on the Street of 67 cents a share.
TTD has noted that when a company can top the highest estimate, the stock can often move higher for the next few weeks.
The company also announced plans to increase its stock buy back plan.
DTV's tape action shows the recent big block trades.
One can see a very bullish trade in the morning when a block of 100,000 shares crossed the tape at $46.50. That was up sharply from the prior block trade at $44.23. In the afternoon, though, the price for the blocks declined. So, there was some clear profit taking.
DTV provides TV services in the United States and Latin America.
The company operates two direct-to-home (DTH) operating segments: DIRECTV U.S. and DIRECTV Latin America.
DIRECTV Holdings LLC and its subsidiaries is the provider of DTH digital television services and the second largest provider in the multi-channel video programming distribution.
DIRECTV Latin America is a provider of DTH digital television services throughout Latin America. DTVLA is comprised of: PanAmericana, which provides services in Venezuela, Argentina, Chile, Colombia, Puerto Rico and certain other countries.
DTV's 12-month performance chart shows the stock appreciating 34% versus a 20% gain for the S&P 500 index.
DTV's stock came public in 2004 (see long-term chart). it traded around 16. The stock did not move much the next two years. However in early 2006 the stock headed north. It absorbed the bear market well. It has since turned sharply higher and is making new highs. That is very bullish.
DTV's daily chart shows the stock gapping out from its base and making a new high. The move comes with good volume. The only negative is that the stock may close near its trading range low.
The stock's technicals are bullish.
The TTD momentum indicator (top of chart) has been bullish for almost two months.
The accumulation - distribution line (bottom of chart) is trending higher nicely. That shows the advance in price is supported by good buying.
This year, analysts forecast a 29% gain in net to $3.04 a share from $2.36 a share in 2010.
The stock sells with a price-earnings ratio of 15. TTD sees that as low making the stock attractive to value investors.
Net for the upcoming first quarter should increase 19% to 70 cents a share from 59 cents a year ago. The highest estimate on the Street is at 82 cents a share. So, some are looking for a big quarter. TTD sees DTV with the potential to surprise on the upside again.
Strategy Opinion: TTD is targeting DTV for a move to 54 after this breakout. A protective stop can be placed near 43. TTD rates DTV an above average intermediate-term play.
Sponsorship: Very Good. A key holder is 5-star rated Vanguard PrimeCap Fund with a 2.6% stake. DTV has 833.7 million shares outstanding.
Insider Activity: Neutral. Insiders have been buyers using stock options. They turned around and sold. The latest selling was at $38.59. Right now, 22 analysts follow the stock, 14 have a buy, down from 15 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
DirecTV - (DTV)
|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 - VRTX - AVERAGE|
|TTD's Quality Rating of Stock - HLF - AVERAGE|
|TTD's Quality Rating of Stock - SSL - 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 - 21
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of breakdown stocks today as stock market continues lower. Airline stocks getting hit as the price of crude oil climbs. Bears can be aggressive.
AMR, based in Fort Worth, is a major airline company. Annual revenues: $22.2 billion. AMR's stock drops sharply today along with other airline stocks. They are coming under selling pressure due to the rise in fuel costs. AMR's drop today comes with an expansion in volume. So far today, AMR is trading 30.1 million shares, triple its normal daily volume of 11.8 million shares. TTD sees more on the downside.
TTD highlighted AMR as a short at our midsession show on the Web.
AMR's stock fell sharply in the morning. It touched a low of 6.47. In the afternoon, the stock lifted slightly.
AMR's tape action shows the recent block trades.
One can see the price for the blocks declining from $7.04 to as low as $6.48. A key bearish trade was a block of 135,122 shares that crossed in the morning at $6.97. That was down from the prior block trade at $7.04.
AMR provides travel to 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia.
AMR Eagle Holding Corporation, a subsidiary of AMR, owns two regional airlines. They operate as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc.
This year, analysts forecast AMR will show a loss of 33 cents a share compared with a loss of $1.17 a year ago. For the upcoming first quarter, AMR is expected to report a deficit of 95 cents a share compared with a loss of $1.36 a share a year ago.
AMR's chart shows the stock falling below key technical support with heavy volume. The stock's accumulation - distribution line (bottom of chart) is in a strong down trend. That shows the stock has been under selling pressure for sometime.
Strategy Opinion: TTD is targeting AMR for a decline to 5 within the next few months, or sooner. A protective stop buy can be placed near 7.50.
|TTD's Quality Rating of Stock - AMR- 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.)