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 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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 10
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list large with some new faces. Bulls be very selective. Stock market looks vulerable to a pull back. Bulls need to be watchful.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
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 - HII - ABOVE AVERAGE
HII, based in Newport News, Va., builds and maintains ships for the U.S. Navy and Coast Guard. Annual revenues: $6.7 billion. HII's stock breaks out today from a six-week, double-bottom base. The move carries the stock to a new high. So far today, HII is trading a heavy 958,270 shares, double its average daily volume of 388,000 shares.
TTD highlighted HII as a breakout at our midsession video show on the Web Thursday.
HII's stock gapped higher in the morning to clear its base. (See 10-minute chart)
The stock then trended mostly sideways the rest of the day holding above its breakpoint. The stock showed good intraday volume in the morning and late in the session.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks advancing from $96.90 in the prior session to as high as $100.68 on Thursday.
A key bullish trade came in the late morning when a block of 6,700 shares crossed the tape at $100.72.
That was up from the prior block trade at $100 on 4,500 shares.
HII builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard.
It also provides after-market services for military ships around the globe.
The company also develops and produces warships, including destroyers, amphibious transport dock ships, and national security cutters for the surface Navy fleet, U.S. Coast Guard, U.S. Marine Corps, and foreign and commercial customers.
It also provides complex nuclear project management; safe management and handling of radiological materials and waste; and nuclear facility construction.
HII's 12-month performance chart shows the stock appreciating 110% versus a 22% gain for the S&P 500 index.
HII's long-term chart shows the stock coming public in 2011 and trading at $40. The stock fell back to 22.
However, it made a quick bottom and turned higher. Since then the stock has made about a fivefold move. The push to a new high could bring in more buying on Friday.
HII's daily chart shows the stock forming a double bottom base above its rising 50-day moving average line.
The breakout is ideal coming with a widening of the spread and an expansion in volume.
The stock's TTD momentum indicator (top of chart)is strongly bullish.
The accumulation -distribution line (bottom of chart) is in an overall up trend.
HII is poised to show strong profit growth.
Earnings for 2013 are expected to show a 58% surge to $4.60 a share from $2.91 a year ago.
For the fourth quarter of 2013, net should be up 24% to $1.22 a share from 98 cents the year before.
Turning to 2014, the Street looks for a 35% gain in net to $6.22 a share from the anticipated $4.60 a share for 2013.
The stock sells with a price-earnings ratio of just 16. That makes it an excellent value-growth play.
Profits for the first quarter of 2014 are expected to leap 64% to $1.42 a share from 87 cents the year before. That would be an acceleration in quarterly earnings growth, which is bullish.
Strategy Opinion: HII is an excellent breakout. TTD is targeting the stock for a move to 120. A protective stop can be placed near 117.
TTD rates HII a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Average. The largest fund holder is 3-star rated Mutual Shares Z Fund with a 3.8% stake. It was a recent seller of 328,550 shares.
HII has 49.4 million shares outstanding. Institutions hold 90% of the stock.
Insider Activity: Neutral. Insiders have been getting stock options at $87.91. They have not done much selling.
Right now, 8 analysts follow the stock, 3 have a buy, up from one three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Huntington Ingalls Industries - (HII)
|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 - CYT - AVERAGE|
|TTD's Quality Rating of Stock - CRL - AVERAGE|
|TTD's Quality Rating of Stock - ORCL - AVERAGE|
|TTD's Quality Rating of Stock - EIGI - BELOW 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts today. Stock market continues to rally. Bears be conservative.
HAE, based in Braintree, Mas., makes automated blood processing systems. Annual revenues: $947 million. HAE's stock breaks down today with an expansion in volume. So far today, HAE is trading a heavy 558,810 shares. Its average daily volume is 386,000 shares. TTD sees more on the downside.
TTD highlighted HAE as a short at our midsession video show on the Web Thursday.
HAE's stock moved lower in the morning undercutting its key technical support at 37.60.
The stock then trended sideways until the late afternoon when it dipped a bit lower.
HAE's tape action shows the recent block trades. One can see the price for the blocks falling from $38.20 a few sessions ago to as low as $37.11.
A key bearish trade came in the morning when a block of 20,000 shares crossed the tape at $37.20. That was down from the prior block trade at $37.41.
The tape showed steady institutional selling pressure.
HAE makes automated blood processing systems. The systems are used for surgical blood salvage, blood component collections and plasma collections. The majority of HAE's business is outside the US.
Earnings for the fiscal year ending in March of 2014 should climb 35%. However, for fiscal 2015 earnings growth will slow to 6%.
HAE's daily chart shows the stock declining from $44 in December to as low as 37. The stock tried to form a bottom. However, today, it cuts below support. The TTD momentum indicator (top of chart) has turned bearish.
Strategy Opinion: TTD is targeting HAE for a decline to 31. A protective stop buy can be placed near 39.
|TTD's Quality Rating of Stock - HAE - 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.)