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Aggressive Investor Bullish- Go To TTD Quick Trade Setups (win rate 70%) - Friday, February 26 |
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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.
Breakout Stocks
Stocks Screened - 8,200
Bull side - Good number of breakouts with some special situation stocks. Bulls be selective and patient. The stock market continues in a trading range which could last awhile.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
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TTD's Quality Rating of Stock - INSU - AVERAGE |
INSU, based in Chesterfiedl, Mo., provides technologies and pipeline rehabilitation services to the sewer, water and energy and mining infrastructure markets. Annual revenues: $650 million. INSU's stock breaks out from an 11-week flat base today on heavy volume. The breakout comes on a gap move triggered by strong fourth quarter profits. So far today, INSU is trading 1.2 million shares, six times its average daily volume of 200,000 shares. 
TTD highlighted INSU at our midsession show on the Web Friday.
INSU's 5-minute chart shows the stock gapping higher at the opening and crossing above its breakpoint line. The stock held the breakout comfortably through the day as the stock market showed very little overall change.
INSU reported fourth quarter net jumped 78% to 41 cents a share from 23 cents a year ago. The 41 cents topped the consensus estimate on the Street of 37 cents a share and also the highest estimate of 40 cents a share.
The stock responded in a bullish way to the bullish news. 
INSU's tape action shows the big block trades for the past two days. One can see the price for the blocks rising steadily from $22.03 to $24.38. A key trade came in the morning when a block of 11,923 shares (duplicated) crossed at $24. That was up sharply from the prior block trade at $22.52.
INSU operates in the United States, Canada, The Netherlands, the United Kingdom, France, Switzerland, Chile, Spain, Mexico, Poland, Romania, Belgium and Indi.
The Company is organized into five segments: North American Sewer Rehabilitation, European Sewer Rehabilitation, Asia-Pacific Sewer Rehabilitation, Water Rehabilitation, and Energy and Mining.
INSU recently acquired the business of The Bayou Companies, L.L.C and the Corrpro Companies.
INSU's 12-month performance chart shows the stock appreciating 90% compared with a 45% gain for the S&P 500 index.
INSU's long-term chart shows the stock touching a bear market low near 10 in 2008. Since then it has rallied to 24, a double. The stock's all-time high is at $29.81. The stock is within striking distance of that peak. A push to a new all-time high would be very bullish. 
INSU's daily chart shows a "breakpoint zone." That was set up when INSU attempted a breakout from a small base in December. It did not work and the stock faded back.
Today's gap move push clears the zone nicely with an expansion in volume and a big upside earnings surprise. So, there is potential for a follow through.
INSU's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is near a new peak and supportive technically of the breakout.
INSU said it expects net for 2010 to be $1.45 to $1.55 a share. That is well above the Wall Street consensus estimate of $1.29 a share. The company said its contract backlog is at a historical high at $463 million.
The strong backlog reflects good orders for sewer rehabilitation and business form the energy and mining industries.
Strategy Opinion: TTD is targeting INSU for a move to 30 within the next few months, or sooner. A protective stop can be placed near 22. TTD rates INSU a good intermediate-term play provided earnings meet expectations. The stock should do well if the economy continues to pick up.
Sponsorship: Good. A key fund holder is 5-star rated Rydex SGI mid Cap Value Fund with a 2.5% stake. It has held its position steady. The largest fund buyer lately was 3-star rated TCW Small Cap Growth Fund which picked up 45,200 shares. INSU has 38.9 million shares outstanding.
Insider Activity: Neutral. Not much activity lately, although some buying has taken place with options late last year. Six analysts follow the stock, 3 have a buy, the same as three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Insituform Technology Inc. - (INSU) |
| 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 - DECK - AVERAGE |
| TTD's Quality Rating of Stock - NKE - BELOW AVERAGE |
| TTD's Quality Rating of Stock - ANN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - BPL - 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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral.
Bear Side - Modest number of breakdown stocks today, but some good looking plays. Stock market remains in a trading range.
(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.)
FCN, based in Baltimore, is an advisory firm for bankruptcy, restructuring, credit issues and indebtedness, mergers and acquisitions, interim business management and electronic discovery. Annual revenues: $1.4 billion. FCN's stock falls sharply today in heavy trading after the company disappointed the Street with its forecast of earnings and revenues. So far today, FCN is trading 4.1 million shares, eight times its normal daily volume of 500,000 shares. 
FCN came in with fourth quarter net of 71 cents a share, up from 56 cents a year ago. The 71 cents was below the consensus estimate on the Street of 73 cents a share. So, that was a mild disappointment.
The real hit on the stock came when FCN projected net this year will be $3 to $3.25 a share. That was below the consensus on the Street of $3.34 a share. The lowest estimate was at $3.20 a share. It also projected lower than expected revenues for the year.
FCN's stock gapped lower at the opening. It hit a bottom at 37.23 around noon. The stock lifted slightly, but then in the late afternoon it started to head lower again.
TTD's clip of the tape shows the big block trade prices falling from $41.90 to $37.50. A key trade was a big block of 100,000 shares that crossed at $38.36. That was down from the prior block trade at $38.38. The tape action showed heavy institutional selling pressure.
The company has operations in the United States and 22 foreign countries such as Argentina, Australia, Bahrain, Belgium, Brazil, the British Virgin Islands, Canada and China.
FCN's daily chart shows the gap breakdown today on big volume. The stock's TTD momentum indicator (top of chart) is bearish. The accumulation - distribution line (bottom of chart) has broken to the downside. That shows there is clear heavy selling pressure.
Strategy Opinion: TTD is targeting FCN for a decline to 32 within the next few months, or sooner. A protective stop buy can be placed near 38.50.
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.)
