Daily - Go to TTD's Tape of Stock Charts - Tuesday. March 18, 2014
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Daily - Go to TTD's Tape of Stock Charts - Tuesday. March 18, 2014 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 17, 2013 |
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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 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 - 11
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Modest number of breakouts but some quality plays. Bulls can be venturesome. Stock market showing good resilience in favor of bulls.
(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
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TTD's Quality Rating of Stock - SQI - ABOVE AVERAGE |
SQI, based in Cary, N.C., produces software used by businesses. Annual revenues: $90 million. SQI's stock, a hot tech stock, breaks out today from a 14-week flat base. The move carries the stock to a new all-time high. So far today, SQI is trading 244,422 shares, almost double its average daily volume of 144,000 shares.
TTD highlighted SQI as a breakout at our midsession video show on the Web Tuesday.
SQI's stock moved higher in the morning in tandem with the stock market's strong advance. 
The stock hit an intraday peak of 32.69 in the early afternoon.
It then trended sideways the rest of the day holding the bulk of its gain.
(See 10-minute chart)
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from $28.51 a few sessions ago to as high as $32.31 Tuesday. 
A key bullish trade came in the morning when a block of 6,200 shares crossed the tape at $31.02.
That was up from the prior block the day before at $30.26 on 5,037 shares.
SQI provides on-demand strategic procurement and supplier enablement solutions that integrates customers with their suppliers to improve procurement of indirect goods and services.
The company's on-demand software enables organizations to realize the benefits of strategic procurement by identifying and establishing contracts with preferred suppliers.
The company tailors its solution for each of the vertical markets it serves by offering industry-specific functionality, content and supplier connections.
SQI's 12-month performance chart shows the stock appreciating 48% versus a 20% gain for the stock market.
SQI's long-term chart shows the stock coming public in 2010 and trading around $12. The stock rose to a peak of 18 in 2011. It then formed a long-term base (see long-term chart). The stock then pushed out of the consolidation in early 2013 and has been trending higher in an orderly way. 
SQI's daily chart shows the stock advancing from 20 back in August to a peak near 30 by December.
The stock then put down a flat base with a shakeout in February. It rallied back to setup well for Tuesday's breakout.
The breakout comes with good volume and a widening of the daily trading spread (range from high to low).
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to the upside. That is good confirmation of favorable buying supporting the breakout.
This year, analysts are forecasting 43% jump in profits to 24 cents a share from 17 cents a year ago.
The stock sells with a price-earnings ratio of 133. That is high!
Going out to 2015, the Street looks for a 51% surge in net to 37 cents a share from the anticipated 24 cents for this year.
Net for the upcoming first quarter should climb 24% to 5 cents a share from 4 cents a year before. The highest estimate on the Street is at 6 cents a share.
SQI tends to come in close to the Street estimates.
Strategy Opinion: SGI's breakout looks impressive. The stock is a winner until proven otherwise. The earnings growth looks good, although the valuation is high.
TTD is targeting SQI for a move to 40 off this breakout. A protective stop can be placed near 29. TTD rates SQI an average intermediate-term play.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Select Software & Computer Portfolio Fund with a 4.7% stake. It was a recent buyer of 206,200 shares.
Also, the 5-star rated Buffalo Emerging Opportunities Fund was a recent buyer of 78,000 shares.
SQI has 23.8 million shares outstanding.
Insider Activity: Bearish. Insiders were recent buyers at $1.13 a share. They sold around $30 recently. The activity was light. Right now, 6 analysts follow the stock, 4 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Sciqurest Inc. - (SQI) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - CBI - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - BWLD - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - SLCA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - MSFT - 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Just two shorts today as stock market extends its rally. Bears remain conservative.
GNC, based in Pittsburgh, Pa., operates retail stores selling nutritional products. Annual revenues: $2.6 billion. GNC's stock, a former leader, breaks to the downside today unable to participate in the stock market's strong rally Tuesday. So far today, GNC is trading a heavy 3.1 million shares. Its average daily volume is 2 million shares. 
Credit Suisse analysts lower his rating on the stock to neutral from outperform due to concern about same store sales.
TTD highlighted GNC as a short at our midsession video show on the Web Tuesday.
GNC's stock trended lower through the day. It hit an intraday low at 44.04 in the early afternoon.
The stock then lifted a bit in the late afternoon.
GNC's tape action shows its recent block trades.
One can see the price for the blocks declining from $45.24 in the prior session to as low as $44.28 on Tuesday.
A key bearish trade came in the afternoon, when a block of 47,500 shares crossed the tape at $44.28. That was down sharply from the prior block trade at $45.07.
GNC operates stores selling vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products.
The company offers its products under the brands- Mega Men, Ultra Mega, GNC WELLbeING, Pro Performance, Pro Performance AMP and Longevity Factors .
Analysts expect GNC's earnings for the first quarter to be up only 5%. That is well below its expected annual rate of 13%.
GNC's daily chart shows the stock peaking near 60 in November. It then turned lower and fell to 454 during the next several weeks. Today, the stock slips below key technical support.
Strategy Opinion: TTD is targeting GNC for a decline to 38 within the next few months or sooner. A protective stop buy can be placed near 46.
| TTD's Quality Rating of Stock - GNC - 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: 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.)
