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 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 - 6
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and quality is low. Stock market still in a trading range. It has yet to make a confirmed turn.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - DGX - AVERAGE
DGX, based Madison, N.J., provides diagnostic testing information services, Annual revenues: $7.4 billion. DGX's stock breaks out today from a seven-week flat base. The move carries the stock to a new high. So far today, DGX is trading 1.6 million shares. Its average daily volume is 1.2 million shares.
DGX's push to a new high is very bullish, especially coming on a day when the stock market declines sharply. It shows the stock has good relative strength.
DGX's 10-minute chart shows the stock spiking higher in the morning and clearing its breakpoint line.
The stock reached an intraday peak of 74.15.
DGX then fell back to the breakpoint line and trended sideways through most of the day. However, late in the session the stock came on again and finished nicely above its breakpoint line.
DGX's tape action shows the recent block trades.
One can see the price for the blocks climbing from $72.36 to as high as $73.89.
A key bullish trade came in the morning when a block of 11,300 shares crossed the tape at $72.55.
That was up from the prior block trade at $72.36 on 16,132 shares.
Then late in the day a massive block of 56,785 shares crossed at $73.19.
That was up from the prior block at $73.17 on 11,000 shares.
DGX provides diagnostic testing information services in the.
The company offers clinical testing services, gene-based and esoteric testing, anatomic pathology services, and drugs-of-abuse testing.
It also makes diagnostic products such as Simplexa molecular chemistries for testing infectious disease and hospital-acquired infections, HerpeSelect HSV serology and DxSelect IFA and ELISA products.
The company offers products to diagnose HIV-1 drug resistance testing under the ViroSeq brand name and reproductive genetics and transplantation under the Atria and AlleleSeqr brand names.
DGX offers its services under the Quest Diagnostics, AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Solstas, and Summit Health brands to patients, physicians and hospitals.
DGX's 12-month performance chart shows the stock appreciating 35% versus a 12% gain for the S&P 500 index. There was some heavy insider selling late in the prior year (see red bars on chart).
DGX's long-term chart shows the stock hitting a peak at 64 in 2006 after a run up from 25 in 2003.
DGX then pulled back and trended in a trading range from 2007 until 2014. The stock broke out of the long-term base in late 2014. That was significant. It now appears to be starting a long-term up trend as it hits a new high Friday.
DGX's daily chart shows the stock climbing from 58 in October to 71 by January.
The stock then put down a flat base that was tight and above the rising 50-day moving average line. That is an ideal setup.
The Breakout comes with a nice expansion in volume given the stock market's drop for the day.
DGX's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend that compliments the price action.
This year, analysts are forecasting a 16% increase in DGX's earnings to $4.76 a share from $4.10 a year ago. The stock sells with a price-earnings ratio of 15. TTD sees that as reasonable.
Going out to 2016, profits are projected to rise 8% to $5.14 a share.
Net for the upcoming first quarter should be up 23% to $1.04 a share from 84 cents a year ago. The highest estimate on the Street is at $1.15.
Looking ahead to the second quarter profits should be up 15% to $1.24 a share from $1.08 a year before.
Strategy Opinion: TTD is targeting DGX for a move to 83 off this breakout. A protective stop can be placed near 70.
TTD rates DGX an average intermediate-term play.
Sponsorship: Good. The largest fund holder is 4-star rated Delaware Value Fund with a 2.2% stake. It has held its position steady.
A key fund buyer recently was the 4-star rated T. Rowe Price Mid-Cap Value Fund which purchased 291,800 shares. It has a 1.5% stake.
DGX has 144 million shares outstanding. Institutions hold 93% of the stock. Insiders less than 1%.
Insider Activity: Slightly Bearish. Insiders have been recent sellers around $70.
Currently, 22 analysts follow the stock, 3 have a buy, down from 4 three months ago. DGX has a book value of $29.87.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Quest Diagnostics Inc. - (DGX)
|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 - CY - AVERAGE|
|TTD's Quality Rating of Stock - RGEN - BELOW AVERAGE|
|TTD's Quality Rating of Stock - ESPR - BELOW AVERAGE|
|TTD's Quality Rating of Stock - DYAX - 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of shorts Friday as stock market declines sharply. Stock market in a trading range. Bears need to be selective.
RRC, based in Fort Worth, Tex., develops oil and gas properties in the U.S. Annual revenues: $2 billion. RRC's stock declines today being pulled low by weakness in the energy sector and the stock market. Technically, the stock cuts below key support. That is bearish. TTD sees more on the downside.
So far today, RRC is trading 3.9 million shares. Its average daily volume is 2.8 million shares.
RRC's stock declined steadily in the morning and hit an intraday low of 43.88 around noon.
In the afternoon the stock rallied back to cut its loss.
RRC's tape action shows the recent block trades.
They show some heavy institutional selling pressure.
A key bearish trade came late in the prior session when a block of 121,390 shares crossed the tape at $45.50.
That was down from the prior block at $45.50 on 3,632 shares.
A second bearish trade came when a block of 62,115 shares crossed the tape at $44.25.
That was down from the prior block at $44.29 on 3,030 shares.
RRC seeks to build value primarily through lower-risk development drilling and acquisitions while to a lesser degree pursuing higher risk exploration projects.
The company also provides financing to small oil and gas producers by purchasing term overriding royalty interests in their properties.
This year analysts are forecasting a 75% drop in RRC's earnings to 40 cents a share from $1.60 a share a year ago. For the upcoming first quarter, the Street is projecting a 78% drip in net to 9 cents a share from 40 cents the year before.
RRC's daily chart shows the stock declining from 72 in November to 44 by January. The stock then tried to form a bottom. However, today, it falls below key support.
Strategy Opinion: TTD is targeting RRC for a decline to 37 within the next few months, or sooner. A protective stop buy can be placed near 46.
|TTD's Quality Rating of Stock - RRC - 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.)