Daily - Go to TTD's Tape of  Stock Charts - Thursday, March 3

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Thursday, March 3

Ticker Tape Digest

Thursday - March 3, 2011

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 for the long-term. We also feature stocks under Significant Accumulation that are poised to breakout.

 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  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 - 22

Overall Quality of Breakouts - ABOVE AVERAGE

Stocks Screened - 8,300

 Bull side - Breakout list swells as stock market rises sharply. The market now appears to be setting up a trading range after its strong gains the past several months. Note weekly indicators are bearish. Bulls go slow and be selective.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bearish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Thursday - March 3

(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)All Timely Breakout Stocks From Tape Action Today )  

(Go to Top Performing Breakout Stocks for 2011 - Update February 28)

Today's Featured TTD Breakout Stock

Peabody Energy Corp. (BTU) - 68.78, up 2.83 - Breakpoint 65.91

Hits 62-week High, Net to Soar 58% This Year, TTD Targeting  84

  BTU, based in St. Louis, produces coal. Annual revenues: $6.9 billion. BTU's stock breaks out from a nine-week, flat base and hits a new 52-week high. BTU lead a strong acting coal group today. Coal stock were the 9th best performing group today. They were up 2.6%. BTU's breakout came in the morning. So far today, the stock is trading 4.9 million shares. Its average daily volume is 3.9 million shares.

  BTU's 10-minute chart shows the stock clearing its base in the morning. It pushed higher peaking at first around midday, and the putting on another push late in the session.

  TTD highlighted BTU as a breakout at our midsession show on the web Thursday.   

    TTD's clip of the tape shows the recent big block trades.

  There was a bullish big block of  101,800 shares that crossed around midday at $68.34. That was up from the prior block at $68.14. That was the largest block in some time and indicated aggressive institutional buying.

    One can see the price for the recent blocks climbed from $65.41 to a peak of $68.74.

  BTU owns a majority interests in 28 coal mines in the U.S. and Australia.

  In addition to its mining operations, it markets, brokers and trades coal.

  The company’s three mining segments are Western U.S. Mining, Midwestern U.S. Mining and Australian Mining.

  BTU' 12-month  performance chart shows the stock appreciating 41% versus a 19% gain for the S&P 500 index.

  BTU's long-term chart shows the stock with two strong waves higher in prior years.   

 The first was from 2004 to 2006 and then from 2006 to 2008. The stock then went into a severe bear market. It tumbled to 18 in late 2008. However, BTU now is pushing higher. It has made a two-year high.

  BTU's daily chart shows the stock climbing from 40 to 66. It then set up a flat base. There were two shakeouts to the downside during the sideways work. Both selling sprees were well contained. After that notice how BTU being to develop a wedge, or lower lows in the following weeks. That preceded breakout and was a tip off that the stock was acting strong.

  The stock's TTD momentum indicator (top of chart) is solidly bullish.

  The stock's accumulation - distribution line (bottom of chart) is in a strong up trend now and is indicating that there is strong buying taking place in BTU.

  BTU is poised to show big earnings gains this year.

  Net for 2011 should climb 58% to $4.82 a share from $3.05 in 2010. The stock sells with a price-earnings ratio of  13 based on 2011 projected net.. TTD sees that as low considering the projected earnings growth rate is 58% for this year and 27% next year.

   BTU is set to show a significant acceleration in quarterly earnings growth.

 Net for the first quarter should increase 16% and then in the second quarter 86%. Accelerating quarterly profit growth is a strong driver that can send a stock higher.

  Net for the first quarter should come in at 60 cents a share, up from 52 cents a year ago. The highest estimate on the Street is at 67 cents a share. TTD sees good chances for at least a modest upside earnings surprise. The company topped the consensus estimate the past four quarters by 5 to 15 cents a share.

  Strategy Opinion:  TTD is targeting the stock for a move to 84.  A protective stop can be placed near 65. TTD rates BTU a good intermediate-term play provided earnings meet expectations. We are especially impressed that the group is acting strong. That bodes well for BTU.

  Sponsorship: Average The largest fund holders have been selling lately. That is a surprise. Vanguard PrimeCap Investor Fund, 5-star rated is the second largest holder at 1.9%. It was a recent seller of 695,800 shares. The largest buyer lately was Invesco Energy Fund, 4-star rated, which bought 488,287 shares. BTU has 270 million shares outstanding.

  Insider Activity:  Neutral. Insiders were buyers recently using stock options. They turned around and sold. The latest selling was at $65. Right now, 22 analysts follow the stock, 19 have a buy, up from 17 three months ago.   

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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: Unfavorable.

 Bear Side - Small list of breakdown stocks today as stock market rallies strongly. Bears be watchful. Market appears now to be setting up a trading range.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Amylin Pharmaceuticals Inc. (AMLN) - 11.38, down 3.63

Concern about Competition, TTD Targets Slide to 9

AMLN, based in San Diego, produces drugs to treat diabetes. Annual revenues: $669 million. AMLN's stock gaps sharply lower today in heavy trading on news of a competitors drug working better than AMLN's. So far today, AMLN is trading 20 million shares, 19 times its normal daily volume of 1.1 million shares. TTD sees more on the downside..

  There was a report that AMLN's diabetes drug Bydureon was outperformed by Victoza, which is made by Novo Norediska. .

  AMLN's stock gapped lower in the morning. It hit an intraday low of 10.45. The stock then lifted modestly and trended sideways the rest of the day.

  TTD's clip of the tape shows AMLN's block trades.

  One can see the price for the blocks declining from $15.40 to as low as $11.35. A key bearish trade came in the morning when 98,729 shares (duplicated) traded at $11.35. That was down from the prior block trade at $15.40.

 AMLN is marketing two first-in-class medicines to treat diabetes, BYETTA  injection and SYMLIN injection. It has an agreement with Eli Lilly and Company for the global development and commercialization of exenatide. This agreement includes BYETTA and other formulations of exenatide, such as exenatide once weekly.

 SYMLIN is an approved medicine in a class of compounds called amylinomimetics. BYETTA is an approved medicine in a class of compounds called glucagon-like peptide-1  receptor agonists. In October 2009, the Company received approval for the expanded indication of BYETTA injection as a first-line, stand-alone treatment  for type II diabetes.

  This year, analysts forecast AMLN will show a loss of 92 cents a share compared with a loss of 94 cents a share in 2010.

  AMLN's chart shows the stock with a gap drop back in October. The stock lifted a bit and then trended sideways. This second massive gap drop makes the chart pattern very bearish.

   Strategy Opinion: TTD is targeting AMLN for a decline to 9 within the next few months, or sooner. A protective stop buy can be placed near 12.20.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

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.)