Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Thursday, February 25, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 21, 2016 |
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 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 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 - 13
Quality of Breakouts- AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls be selective. Stock market still vulnerable to the downside.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - MKTX - AVERAGE |
MKTX, based in New York, operates an electronic trading platform for bonds and fixed-income securities. Annual revenues: $303 million. MKTX's stock brakes out from a 13-week flat base. The move carries the stock to a new high. That is bullish
So far today, MKTX is trading 255,232 shares. Its average daily volume is 263,000 shares.
TTD highlighted MKTX as a breakout at our midsession video show on the web Thursday.
MKTX's 10-minute chart shows the stock breaking out in the morning.
The stock then advance steadily reaching a peak of 119.72 in mid-afternoon.
The stock then trended sideways holding the bulk of its gain into the final bell.
MKTX's tape action shows the recent block trades.
One can see the price for the blocks climbing from $115.28 in the prior session to as high as $119.25.
A key bullish trade came late on Wednesday when a block of 11,888 shares (duplicated) crossed the tape at $116.
That was up sharply from the prior block trade at $115.28 on 4,100 shares.
MKTX runs an electronic trading platform for fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide.
Its multi-dealer trading platform allows its institutional investor clients to request competing and executable bids or offers from its broker-dealer clients, and execute trades with the broker-dealer of their choice.
The company's trading platform provides access to liquidity in U.S. corporate bonds, emerging markets and high-yield bonds, European bonds, U.S. agency bonds, credit derivatives, and other fixed-income securities.
MKTX's 12-month performance chart shows the stock appreciating 50% versus a 10% decline in the Stock market.
The chart also shows significant insider buying in recent months (see green bars on chart).
MKTX's stock came public in 2004 at 19.89. The stock fell back and then rose back to a peak near 20 in 2007, the top in the prior bull market.
However, the stock fell to 3.96 in 2008 due to the bear market. With the unfolding of the bull market, MKTX soared to a an all-time peak of 115.89 set on Thursday.
MKTX's daily chart shows the stock climbing from 86 back in October to a peak near 115 by December.
The stock then put down a base bracketed between roughly 100 and 115.
The base is a bit wide due in part to the volatility of the stock market.
The breakout Thursday is solid showing a nice widening of the daily spread.
The stock's CCI momentum indicator (bottom of chart) is in an up trend.
The accumulation - distribution line (very bottom of chart) is trending higher showing good underlying buying.
Analysts expect net for 2016 to climb 19% to $3.03 a share from $2.55 a year ago.
The stock sells with a price-earnings ratio of 36. That is high given the earnings growth rate.
Going out to 2017, the Street projects a 23% gain in net to $3.74 a share from the anticipated $3.03 this year.
Net for the upcoming first quarter should increase 15% to 75 cents a share from 65 cents the year before.
The highest estimate on the Street is at 78 cents a share. The company tends to come in close to the consensus.
Going out to the second quarter, profits are projected to rise 18% to 75 cents a share from 64 cents the year before.
Strategy Opinion: TTD is targeting MKTX for a move to 145 within the next few months.
A protective stop can be placed near 113.
TTD rates MKTX an average intermediate-term play. Its valuation is high. So, one will need to be watchful.
Sponsorship: Good. One of the largest fund buyers recently was the 4-star rated Neuberger Berman Genesis Fund which purchased 100,200 shares. It has a 2.3% stake.
The largest fund holder is the 3-star rated Wells Fargo Growth A Fund with a 4.7% stake. It was a recent seller of 77,000 shares.
MKTX has 37.3 million shares outstanding. Institutions hold 97% of the stock and insiders have 2%.
Insider Activity: Neutral. Not much activity lately.
Currently, 5 analysts follow the stock, 2 have a buy, the same as three months ago.
MKTX has a book value of $10.65 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Marketaxess Holdings Inc. - (MKTX) |
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 - AMRK - ABOVE AVERAGE |
TTD's Quality Rating of Stock - TFX - AVERAGE |
TTD's Quality Rating of Stock - JNJ - AVERAGE |
TTD's Quality Rating of Stock - FRAN - AVERAGE |
Ticker Tape Digest provides a list of potential breakout stocks from our screen of companies that will show some of the strongest earnings gains. One of the best ways to play these stocks is to study the list and then place a stop buy order to catch the stock on the breakout.
One can take either a full position on the breakout if they are aggressive, or scale-in looking to add to the stake later if they are conservative. TTD's premarket breakout watch list gives you a great opportunity "to be prepared for the next key breakout stock just before it happens." The list will be updated daily and the screen monthly.
Guide: Symbol=Ticker, Name=Corporate name, Entry is the buy price to enter on the breakout, Last=prior close, Change=change from last close to prior, Date=date of price of close etc, Gain in blue is price above breakpoint (entry), Gain in red is price below breakpoint (entry)., % Gain in blue is % over breakpoint (entry), Gain in red is % below breakpoint (entry)
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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Small list of breakdown stocks Thursday as stock market rallies sharply. Bears be conservative and patient.
PHH, based in Mount Laurel, N.J., provides outsourced mortgage banking services to financial institutions and real estate brokers in the U.S.. Annual revenues: $1.1 billion. PHH's stock falls sharply Thursday and undercuts key technical support.
TTD highlighted PHH as a short at our midsession video show on the Web Thursday.
The decline was due to PHH reporting a loss for the fourth quarter of 92 cents a share. The Street was looking for a loss of just 15 cents.
The disappointment sent the stock lower.
PHH fell sharply in the morning and then touched a low at 8.55 around noon. The stock then trended mostly sideways.
PHH's tape action shows the recent block trades.
One can see the price for the blocks falling from $11.89 in the prior session to as low as $8.71 Thursday.
A key bearish trade came in the morning when a block of 17,073 shares crossed the tape at $10.39.
That was down sharply from the prior block trade at $11.89 on 23,748 shares.
The company provides private-label mortgage services to financial institutions and real estate brokers; and originates and sells mortgage loans.
Its mortgage servicing operations services mortgage loans, purchases mortgage servicing rights, and acts as sub servicer for clients that own the underlying servicing rights.
This year, the Street has been forecasting a profit of 61 cents a share. That could come down. For the upcoming first quarter, analysts look for a breakeven.
PHH's daily chart shows the stock trending lower from 17 back in November down to around 11. It tried to put in a bottom, but today falls sharply with heavy volume. The stock's accumulation - distribution line (bottom of chart) has resumed its down trend.
Strategy Opinion: TTD is targeting PHH for a decline to 6.50 within the next few months, or sooner.
A protective stop buy can be placed near 9.30.
TTD's Quality Rating of Stock - PHH - 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: 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.)