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 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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts. Stock market now "dancing in place." Bulls be selective venturesome. Stock market holds in up trend with momentum still bullish.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bullish
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - NICE - AVERAGE
NICE, based in Raanana, provides solutions that enable enterprises and security firms to extract insight from interactions, transactions and surveillance. Annual revenues: $794 million. NICE's stock breaks out today from an 8-week, cup-and-handle base. The move carries the stock close to four-year high. So far today, NICE is trading 508,649 shares, double its normal daily volume of 251,000 shares.
NICE's 10-minute chart shows the stock pushing higher in the morning and breaking out to the upside.
The stock continued to work higher in the afternoon and was set to close near its high for the day which is bullish.
NICE's tape action is show by the recent big block trades.
One can see the price for the recent blocks climbing from $35.77 to a peak of 38 late in the day. A key bullish trade came in the morning when a block of 5,000 shares crossed the tape at $37.18. That was up from the prior block trade at $36.20.
NICE's solutions enable firms and public organizations to capture, manage, analyze and impact unstructured interaction, as well as transactional data, enabling them to comply with internal and governmental regulations, improve business and operations and address security threats.
Unstructured content includes cross-channel analysis of phone calls, chat, instant messaging and e-mail interactions to contact centers.
The service also aids trading floors, branches, home agents and back offices, phone calls to emergency service providers and first responders, video captured by closed circuit cameras and internet sessions.
NICE's 12-month performance chart show the stock appreciating just 6% versus an 8% gain for the S&P 500 index. NICE's stock has been trending sideways since last September. However, the move today could indicate an advance is beginning.
NICE's long-term chart show the stock climbing from 5 back in 2003 to a peak of 40.95 by late 2007. The stock then fell in the bear market finally bottoming at 16.11 in late 2008. It has since worked higher.
NICE's daily chart shows the stock trending sideways the past five months. Most recently, it has formed a cup-and-handle base.
Today, it breaks out nicely with a widening of the daily trading spread and with an expansion in volume.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) broke out to the upside about two weeks ago. That was a good lead indicator that the price of the stock might breakout too.
So, the tape action shows good underlying buying in the stock.
This year, analysts forecast a 22% jump in earnings to $2.16 a share from $1.77 a year ago. The stock sells with a price-earnings ratio of 17. TTD sees that as reasonable.
Going out to 2013, analysts project a 15% increase in net to $2.49 a share from the anticipated $2.16 this year.
Net for the upcoming first quarter should increase 18% to 45 cents a share from 38 cents a year ago. The highest estimate on the Street is at 47 cents a share. Nice tends to report close to the consensus estimate.
Net for the second quarter should rise 20% to 49 cents a share from 41 cents a year ago. The company has been picking up some new contracts.
Strategy Opinion: TTD is targeting NICE for a move to 46 off this breakout. A protective stop can be placed near 35.50. TTD rates NICE a slightly above average intermediate-term play.
Sponsorship: Very Good. The largest fund holder is Sentinel Small Company Fund with a 1.8% stake. The 4-star rated fund was a recent seller of 10,000 shares. The largest buyer recently was 4-star rated EQ/MFS International Growth Fund which added 46,820 shares. Also, 5-star rated LKCM Small Cap Equity Inst. Fund recently purchased 10,600 shares. NICE has 63.8 million shares outstanding. Institutions hold 50% of the stock.
Insider Activity: Not available. Right now, 10 analysts follow the stock, 9 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
|TTD's Breakout Profile
Nice Systems Inc. - (NICE)
|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 - LNKD - AVERAGE|
|TTD's Quality Rating of Stock -EQIX - AVERAGE|
|TTD's Quality Rating of Stock - WES - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today. Bears be selective as stock market still remains in up trend. TTD's short from Tuesday was Targacept Inc. (TRGT)) at 5.34. The stock has declined to 5.09 so far today and is working well for bears.
AIR, based in Wood Dale, Il., provides aftermarket products and services for the aerospace market. Annual revenues: $1.9 billion. AIR's stock falls sharply today after the company reported earnings for the fiscal third quarter ended February 28 and cited problems. So far today, AIR is trading a heavy 921,837 shares, four times its normal daily volume of 211,000 shares. TTD sees more on the downside.
TTD highlighted AIR as a short at our midsession video show on the Web Wednesday.
AIR's stock fell steadily in the morning. It hit an intraday low in the morning at 19.83. The stock then trended sideways the rest of the day unable to rally.
AIR's tape action sows steady institutional selling pressure. The price for the blocks declined from $22.18 to $20.01. A key bearish trade came in the morning when a block of 8,624 shares crossed the tape at $21.99, down from the prior block at $22.18.
AIR provides aircraft, engines and engine parts; airframe and accessories products; overhaul, repair and maintenance services and company-manufactured products to customers in the commercial airlines and air cargo industries.
AIR reported net for the fiscal third quarter of 50 cents a share, up from 44 cents a year ago. However, the current quarter included a special tax gain of 9 cents a share. This fiscal year ending May of 2012 is expected to rise 5% to $1.92 a share from $1.83 a year ago.
AIR's chart shows the stock breaking down with a widening of the daily spread and expanding volume. The stock's accumulation - distribution line had been strong. That shows the news came as a surprise.
Strategy Opinion: TTD is targeting AIR for a decline to 16.50. A protective stop buy can be placed near 21.40.
|TTD's Quality Rating of Stock - AIR - 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.”
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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.)