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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 Accumulation 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. 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: 1-480-878-8381 or 480-704-3331.
Thursday - March 19, 2020
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts - 3
Quality of Breakouts - Average
Stocks Screened - 12,234
Bull side - Small list of breakouts with some interesting plays for aggressive bulls.
Stock market - Market averages remain bearish in all time sectors.
Comment - Bulls be conservative as the stock market tries to form a bottom.
See Latest Earnings Reports - A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats - GIII, DRI, CMC, MOMO, ACN and DOYU.
Stock Market Momentum
(Daily is based on a moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bearish |
Dow - Bearish |
Dow - Bearish |
Nasdaq - Bearish |
Nasdaq - Bearish |
Nasdaq - Bearish |
S&P 500 - Bearish |
S&P 500 - Bearish |
S&P 500 - Bearish |
TTD's Quality Rating of Stock - ZM - ABOVE AVERAGE |
ZM, based in San Jose, Ca., provides video-first communication platform and web conferencing services. Annual revenues: $623 million. ZM's stock drives higher Thursday and breaks out from its 5-week, flat base.
With many businesses asking employees to work at home, the use of conference systems has increased.
So far today, ZM is trading 16.2 million shares. Its average daily volume is 14 million shares.
TTD sees more on the upside. TTD highlighted ZM as a breakout at our midsession video show on the Web.
ZM's stock broke out in the morning and climbed to an intraday peak at $132.23 in the early afternoon.
The stock then gave some ground late in the day.
Tape Action
ZM's tape action shows the recent block trades.
One can see the price for the blocks climbing from $118.71 in the prior session to as high as $130 in the early afternoon.
A key bullish trade came in the morning when a block of 248,767 shares (duplicated) crossed the tape at $122.01.
That was up from the prior block at 118.71 on 16,276 shares in the prior session.
Near the close a block of 45,607 shares crossed at $123.77. That came on an up tick from the prior trade at $123.38 on 399 shares.
Business
ZM offers cloud-native platform, which unifies cloud video conferencing, online meetings, group messaging and a software-based conference room system.
The system offers video, audio and screen-sharing experience across Windows, Mac, Linux, Android, BlackBerry, Zoom Rooms and H.323/Session Initiation Protocol room systems.
Its security solutions include secure socket layer (SSL) encryption and role-based access control. It offers its solutions to education, finance and government sectors.
Charts
ZM's 12-month performance chart shows the stock up 100% versus a 12% drop in the stock market.
ZM's insiders were recent buyers at $3.77 a share. They were sellers at $70 to $119 a share.
ZM's long-term chart shows the stock came public last year at $65 a share.
The stock rose to $107 by June of last year. However, it later fell back to $60 later in the year.
Since then, ZM's stock has surged higher aided by the need for companies to go to video conference work because of concern of the corona virus.
ZM's daily chart shows the stock surging from $62 in December to around $122.
The stock put down a small flat base.
It breaks out Thursday with a modest pick up in volume.
The stock's CCI momentum indicator is bullish.
Earnings Outlook
Net for the fiscal year ending in January of 2021 is projected to rise 17% to 41 cents a share from the 35 cents the prior year.
That estimate could be increased. Currently, 11 analysts follow the stock.
Looking out to fiscal 2022, the Street is targeting a 34% jump in net to 56 cents a share from the anticipated 41 cents this fiscal year.
Profits for the fiscal first quarter ending in April should surge 233% to 10 cents a share from the 3 cents the prior year.
For the fiscal second quarter, net is expected to be up 38% to 11 cents a share from the 8 cents the prior year.
Strategy Opinion: TTD is targeting ZM for a move to $145 within the next few months, or sooner.
A protective stop can be placed near $117.
Intermediate-Term Rating: Average.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Breakout Success |
Bullish |
ZM scored a big gain off its recent breakout. |
Response to Net |
Bullish |
ZM rose 2 times after 3 earnings reports. |
Seasonal Success |
Bullish |
ZM avg. gain 17.9% in March., 101% in April in prior years. |
Earnings Beats |
Bullish |
ZM beat Street net estimate 3 times after 3 reports. |
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 |
% |
1/31/2020 | 75.95 | 123.77 | Still in play |
(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 Price Performance after Reporting Earnings
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - WDFC - AVERAGE |
TTD's Quality Rating of Stock - CHWY - 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 for Thursday - 1
Stocks Screened - 12,234
Long-Term Environment for bears: Favorable.
Bear Side - Just one short. Many short plays are extended to the downside.
PGR, based in Mayfield Village, Ohio, is an insurance company. Annual revenues: $39 billion. PGR's stock falls sharply Thursday and undercuts key support from a head-and-shoulder pattern.
So far today, PGR is trading 6 million shares. Its average daily volume is 4.9 million shares.
TTD sees more on the downside.
PGR's stock fell in the morning and undercut key technical support.
However, the stock rallied to get above its support line by noon. In the afternoon, though, the stock trended steadily lower. It finished near its low for the day.
Tape Action
PGR's tape action shows the recent block trades.
One can see the price for the blocks falling from $72.15 in the prior session to as low as $66.75 late in the day.
A key bearish came in the morning when a block of 62,229 shares (duplicated) crossed the tape at $71.56.
That was down from the prior block at $72.15 on 364,292 shares the day before.
Business
PGR provides personal and commercial automobile and property insurance. The personal Lines segment writes insurance for personal autos, and recreational and other vehicles.
The commercial Lines handle liability, physical damage and other auto-related insurance for automobiles and trucks. It is also a homeowner carrier too.
Earnings:
This year, analysts are forecasting a 21% drop in net to $5.33 a share from the $6.72 the prior year.
Profits for the first quarter should be down 25% to $1.38 a share from the $1.83 the previous year.
Charts:
PGR's daily chart shows the stock breaking down from a head-and-should topping pattern.
The stock's 12-month performance chart shows the stock down 5% versus a 15% drop in the stock market.
Insiders were buyers using stock options. The price was not disclosed. They were sellers at $81 to $71 a share.
Strategy Opinion: TTD is targeting PGR for a decline to $57. A protective stop buy can be placed near $70
Suitability: Aggressive Bears.
TTD's Stock Probability research of Prior Performance:
Response to Net |
Bullish |
PGR rose 10 times after 15 earnings reports. |
Seasonal Success |
Bullish |
PGR up 1.3% in March, 0.4% in April in prior years. |
Earnings Beats |
Bullish |
PGR beat Street estimate 12 times after 20 reports. |
TTD's Quality Rating of Stock - PGR - BELOW AVERAGE |
Stock's 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 has also been a speaker at the Money Show 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 1-480-878-8381.
Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.
TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.
TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays. There are other features too such as Quick Trades and Long-term Plays.
TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.
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(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.)