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 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 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 - 18
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays, especially home building stocks. Bulls can be venturesome. Stock market holds up trend, but in need of a rest.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - IBP - ABOVE AVERAGE
IBP, based in Columbus, Ohio, installs insulation, garage doors, rain gutters, shower doors and other items. Annual revenues: $821 million. IBP's stock surges higher Thursday and breaks out from a 12-week flat base. The move was triggered by a strong earnings report.
TTD highlighted IBP as a breakout at our midsession video show on the Web Thursday.
So far today, IBP is trading a heavy 822,940 shares, almost seven times its average daily volume of 119,000 shares.
The stock spiked higher in the morning off of strong earnings.
The stock reached $45 in the morning and then trended sideways. (see 10-minute chart)
The stock then lifted late in the afternoon to reach its high for the session of $46.80.
IBP reported net for the first quarter rose to 44 cents a share, excluding special items.
The 44 cents topped the Street estimate of 39 cents a share. That was impressive.
It also topped the highest estimate on the Street of 40 cents a share. That is very bullish.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks climbing from $41 in the prior session to as high as $45.90 Monday.
A key bullish trade came in the morning when a block of 4,860 shares crossed in the morning at $42.30.
That was up from the prior block trade at $41 on 9,383 shares.
Then near the close a big block of 16,382 shares (duplicated) crossed the tape at $45.90.
That was up from the prior block trade at $44.82 on 3,000 shares. The tape action for the day was solidly bullish.
IBP produces closet shelving and mirrors, and other products for buildings.
It also sells insulation materials, such as fiberglass insulation, spray foam insulation, and cellulose insulation materials.
The company is involved in the installation of insulation and sealant materials in various areas of a structure.
They include basement and crawl spaces, building envelopes, attics, and acoustical insulations.
The firm's clients include homebuilders, multi-family and commercial builders, individual homeowners, and repair and remodeling contractors.
IBP's 12-month performance chart shows the stock appreciating 102% versus a 23% gain for the stock market.
Two insiders were recent sellers around $42 in January. However, insiders CEO Jeffre Edwards was a buying at $20 back in June using stock options. He has not done any selling since.
IBP's long-term chart shows the stock coming public in 2014 at $14.89. The stock pulled back to $10.82 later in the year.
However, IBP's stock trended sharply higher afterwards reaching a peak 29.97 in 2015. The stock then pulled back to 17.60, but then rallied again and is still in play on the upside. The stock is a leader.
IBP's daily chart shows the stock advancing from 32 in October to a peak near 43 by December. .
The stock then put down a tight flat base with most of the work done above its rising 50-day moving average line
The breakout Thursday comes with a gap move and expanding volume. The widening of the daily spread is impressive.
The stock's CCI momentum indicator is strongly bullish.
This year, analysts are forecasting 50% leap in net to $1.99 a share from $1.33 for 2016.
That forecast could be lifted.
The stock sells with a price-earnings ratio of 23, TTD sees that attractive to value-growth investors.
Analysts have been lifting their earnings estimates.
Net for the upcoming first quarter is expected to surge 65% to 33 cents a share from 20 cents the year before.
Strategy Opinion: TTD is targeting IBP for a move to $55 off this breakout. A protective stop can be placed near $43 which is tight.
TTD rates IBP a good intermediate-term play provided earnings meet expectations.
Suitability: Average Bull.
TTD's special research of IBP's Prior Performance after a Breakout:
TTD's research shows that recently (see table) IBP has scored solid gains after a breakout. The stock has been very consistent posting gains of 16% to 35%. The stock is an overall long-term up trend.
The stock has moved significantly higher after its prior four earnings reports. It has actually advanced after its past 10 earnings reports. That is impressive.
The seasonally chart shows very good performance in February and March.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A.
Date of Breakout
Break point Price
Stocks Price Peak after Breakout - prior to cut below 50-day M/A
Date Trade Closed
(In actual trading, entry and exit points could vary depending on broker execution.
Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)
Stock's Long-term Chart
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Stock's Monthly Seasonal Performance Chart - Past 5 Years
Showing % Months UP and % Change
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - BLD - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - BID - AVERAGE|
|TTD's Quality Rating of Stock - UNH - AVERAGE|
|TTD's Quality Rating of Stock - OA - 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakdown stocks Monday. Bears be selective.
TTD's short from Monday was Zoes Kitchen Inc. (ZOES) at $19.73. Monday, the stock falls to $18.67, off 1.12 and is working well for bears.
SSTK, based in New York, provides digital imagery for corporate and advertising. Annual revenues: $480 million. SSTK's stock falls sharply Monday after reporting disappointing quarterly earnings. TTD sees more on the downside.
TTD highlighted SSTK as a short at our midsession video show on the Web Monday.
So far today, SSTK is trading 4 million shares, 14 times its average daily volume of 281,000 shares.
SSTK reported net of 42 cents a share, excluding special items, for the fourth quarter.
That was below the Street estimate of 45 cents a share.
The company also gave a weak forecast for the year.
SSTK's stock gapped lower in the morning. It fell to an intraday low of $41.66 in the morning.
The stock then lifted slightly and trended sideways the rest of the day.
SSTK's tape action shows the recent block trades.
One can see the price for the blocks falling from $52.24 in the prior session to as low as $42.17 Monday morning.
A key bearish trade came on Monday when a block of 20,000 shares crossed the tape at $42.17.
That was down from the prior block trade late on Friday when 20,000 shares crossed at $52.24.
SSTK is a global provider of creative content and commercial music.
Its products include digital imagery. That consists of licensed photographs, illustrations and video clips that customers use for web sites, digital and print marketing materials, corporate communications, books, publications and video content.
Its commercial music is used to complement digital imagery.
This year, analysts are forecasting a 16% increase in net to $1.16 a share. Net for the first quarter should be up 17% to 27 cents a share from 23 cents the year before.
The company has tended to top Street estimates. The miss for this quarter breaks that streak.
SSTK's stock gaps lower Monday blowing right below key technical support. The selloff appears climactic. However, the disappointing quarter could bring in more institutional selling. The stock was at $101 back in 2014.
SSTK's 12-month performance chart shows the stock up 24% versus a 24% gain for the stock market. However, SSTK has lost a lot of ground the past six months.
Insiders have been light sellers of the stock in recent months. It has awarded stock options (green bars). However, they have not been executed.
Strategy Opinion: TTD is targeting SSTK for a decline to $36 within the next few months, or sooner. A protective stop buy can be placed near $45.
Suitability: Aggressive Bears.
|TTD's Quality Rating of Stock - SSTK - BELOW AVERAGE|
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)