Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, March 13, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, March 13, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 13, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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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 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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - 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 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 - 14
Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls can be venturesome. Stock market basing after up trend.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
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
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TTD's Quality Rating of Stock -BABA - ABOVE AVERAGE |
BABA, based in China, provides online services that includes ad services. Annual revenues: $20.9 billion. BABA's stock breaks out Monday from an eight-week flat base. The move puts the stock within range of making a new all-time high. It needs to top $120. 
TTD highlighted BABA as a stock to accumulation in anticipation of a breakout just a week ago.
So far today, BABA is trading 16.1 million shares, about double its average daily volume of 8.1 million shares.
The stock surged higher in the morning to clear its breakpoint line (see 10-minute chart). 
The stock then drifted back but held on its breakpoint line. It lifted a bit near the close.
Tape Action
BABA's tape action shows the recent block trades.
One can see the price for the blocks climbing from $103.39 in the prior session to as high as $105.81 Monday.
Near the close a massive block of 1,078,961 shares (duplicated) crossed the tape at $105.18.
That actually came on an up tick from the prior trade at $105.17 on 500 shares. 
Business
BABA provides online and mobile commerce through products that enable merchants, brands and other businesses to market their products in China and internationally.
The Company provides retail and wholesale marketplaces available through both personal computer and mobile interfaces.
Retail marketplaces include the China online shopping destination (Taobao Marketplace), the China brands and retail platform (Tmall) and the China group buying site that offers products by aggregating demand from consumers through limited time discounted sales (Juhuasuan).
Charts
BABA's 12-month performance chart shows the stock appreciating 42% versus an 18% gain for the stock market.
BABA's long-term chart shows the stock coming public in 2014 at $88.70. The stock surged to its all-time high shortly getting to $120.
However, the stock fell back hard to $57.20 in 2015.
Since then BABA has been working higher.
BABA's daily chart shows the stock climbing from $86 back in December to a peak near $104.
The stock put down a tight flat base and Monday breaks out with a nice widening of the daily spread and expanding volume.
The base was setup above the rising 50-day moving average line.
That shows the stock remained in an up trend near-term.
BABA's CCI momentum indicator is strongly bullish.
Earnings
BABA is poised to finish its fiscal year ending in March very strong.
Net for the fiscal fourth quarter should surge 150% to 50 cents a share from 20 cents the year before.
The highest estimate on the Street is at 53 cents a share.
TTD sees good chances for an upside earnings surprise. The past three quarters, BABA has topped the consensus estimate by 24 cents a share, 16 cents and 14 cents. That is impressive.
Net for all fiscal 2017 should soar 63% to $2.65 a share from $1.63 the year before.
The stock sells with a price-earnings ratio of 38.
Looking ahead to fiscal 2018 ending in March, the Street predicts a 19% increase in net to $3.16 a share from the anticipated $2.65 expected in fiscal 2017.
Profits for the first fiscal quarter should be up 24% to 64 cents a share from 52 cents the year before.
Strategy Opinion: TTD is targeting BABA for a move to $125 after a breakout. A protective stop can be placed near $99 after a breakout.
TTD rates BABA an average intermediate-term play.
Suitability: Average Bulls.
TTD's special research of BABA's Prior Performance after a Breakout:
TTD's research shows that recently (see table) BAB tends to either score small or big gains off its breakouts. Currently the stock is in a nice up trend. So, that is a positive on returns from a breakout.
The stock has moved higher 6 out of the past 10 earnings reports.
Stock's Prior Performance After A Breakout
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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 |
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29% |
7/18/2016 | 84.74 | 109.36 | 9/22/2016 |
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1% |
4/20/2016 | 81.21 | 81.73 | 4/20/2016 |
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5% |
5/7/2015 | 86 | 90.70 | 5/20/2015 |
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31% |
10/21/2014 |
90.90 |
119.15 |
11/10/2014 |
(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 - MPWR - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - PGEM - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - AEIS - AVERAGE |
| TTD's Quality Rating of Stock - ATHM - 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: Unfavorable.
Bear Side - Small list of breakdown stocks Monday. Bears be conservative. Stock market now consolidating. Fed to meet this week and may raise interest rates.
TTD's short from Friday was Zumiez Inc. at $18.40. Monday the stock falls to $17.70 and is working well for bears.
FIT, based in San Francisco, makes health and fitness devices with software. Annual revenues: $2.2 billion. FIT's stock falls Monday and undercuts key technical support with expanding volume. TTD sees more on the downside. 
So far today, FIT is trading a heavy 15.6 million shares. Its average daily volume is 9.1 million shares.
The stock moved lower in the morning touch $5.60.
It lifted slight, trended sideways through midday, but faded late in the session.
Tape Action
FIT's tape action shows the recent block trades.
One can see the price for the blocks falling from $5.87 in the prior session to as low as $5.59 during the day.
A key bearish trade came in the morning when a massive block of 368,736 shares crossed at $5.69.
That was down from the prior block at $5.78 on 343,800 shares.
Business
FIT's products connect with software and includes an online dashboard and mobile applications, data analytics, motivational and social tools, personalized insights and coaching.
Its devices, include Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Blaze, Fitbit Charge HR, Fitbit Surge and Aria.
Its platform includes wearable connected health and fitness trackers, which are wrist-based and clippable devices that automatically track users daily steps, calories burned, distance traveled, and active minutes and display real-time feedback.
Earnings
This year, analysts are forecasting FIT will show a loss of 62 cents a share compared wit a loss of 38 cents the year before.
For the first quarter, they see FIT posting a loss of 25 cents a share compared with a profit of 3 cents the year before.
Going out to 2018, the Street is projecting a loss of 43 cents a share.
Charts
FIT's daily chart shows the stock just getting below its support line. There is a big expansion in volume. The stock was as high as $51.90 last year.
FIT's performance chart shows the stock down 60% versus an 18% gain for the stock market.
Insider activity is very bearish. Insiders have been buyers using stock options. They have turned around sold. The latest selling was around $6 a share. Director Jonathan Callaghan has been a big buyer using stock options to acquire 4.8 million shares. So far he has done just light selling.
Strategy Opinion: TTD is targeting FIT for a decline to $4.20 within the next few months, or sooner. A protective stop buy can be placed near $6.05.
Suitability: Aggressive Bears.
| TTD's Quality Rating of Stock - FIT - 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.)
