Daily - Go to TTD's Chart scroller of Breakout Stocks - Wednesday, March 22, 2017
|
Daily - Go to TTD's Chart scroller of Breakout Stocks - Wednesday, March 22, 2017 |
|
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 20, 2017 |
|
|
Go to Video Show - "How to Make Money With Breakout Stocks |
|---|
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. 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) |
|---|
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.
TTD's Breakout Stocks 
Stock Market Overview
Total Buy Breakouts so far today - 6
Quality of Breakouts - Below Average
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Stock market mixed as it tried to consolidate after recent sharp decline. bulls be patient.
Environment: Bearish
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 - CHKP - ABOVE AVERAGE |
CHKP, based in Tel Aviv, Israel, produces software used by businesses to stop hackers. Annual revenues: $1.7 billion. CHKP's stock breaks out Wednesday from a seven-week, cup-and-handle base. The move carries the stock to a 16-year high. 
CHKP's stock came public back in 1996 at $3.91 adjusted for stock splits.
So far today, CHKP is trading 1.3 million shares. Its average daily volume is 1 million shares.
CHKP's stock moved steadily higher in the morning and cut across its breakpoint line. (see 10-minute chart)
The stock reached an intraday high of $103.25 in the morning. 
Just before noon, the stock pulled back and then trended sideways the rest of the day.
Late in the session the stock edged higher with a pick up in volume. That indicated some accumulation.
Tape Action
CHKP's tape action shows the recent block trades.
One can see the price for the blocks climbing from $100.95 in the morning to as high as $103.23.
A key bullish trade came in the morning when a block of 7,500 shares crossed the tape at $101.44.
That was up from the prior block trade at $100.95 on 13,423 shares (duplicated). 
Business
CHKP develops software for sold to enterprises, service providers, small and medium sized businesses and consumers.
It provides a platform to deploy independent, modular and interoperable security applications.
They include such things as firewall, virtual private network, intrusion prevention system , Application Control, Anti-Bot, antivirus, data loss prevention, policy management, event analysis or multi-domain management.
The company offers Software Blades grouped into functional packages to address specific security issues.
Charts
CHKP's 12-month performance chart shows the stock appreciating 23% versus a 13% gain for the stock market.
Recently, the stock has shown a tendency to move higher prior to its earnings report.
CHKP's long-term chart shows the stock climbing from $20 back in 2009 to a peak near $60 by 2011. It then went into a long-term consolidation.
It broke out from its long-term base in late 2013 and surged from $60 to $$102.
CHKP's daily chart shows the stock breaking out from a cup-and-handle base.
The move comes with a widening of the daily spread. (range from high to low for the day)
The push to a multi-year high is bullish.
The stock's CCI momentum indicator (bottom of chart) is bullish.
Earnings Outlook
This year, analysts are forecasting an 11% increase in net to $4.71 a share from $4.24 a year ago.
The stock sells with a price-earnings ratio of 21. TTD sees that as reasonable.
Looking out to 2018, the Street predicts a 10% rise in net to $5.18 a share from the anticipated $4.71 this year.
Profits for the first quarter should be up 11% to $1.07 a share from 97 cents the year before.
The highest estimate on the Street is at $1.10 a share.
TTD sees good chances for an upside earnings surprise. The company topped the Street estimate the past two quarters by 18 cents a share and 4 cents.
Going out to the second quarter, analysts predict a 14% increase in net to $1.11 a share from 97 cents the year before.
Strategy Opinion: TTD is targeting CHKP for a move to $120 off this breakout. A protective stop can be placed near $98. TTD rates CHKP a good intermediate-term play provided earnings meet expectations.
Suitability: Average Bulls.
TTD's special research of CHKP's Prior Performance after a Breakout:
TTD's research shows that recently (see table) CHKP has posted some solid gains after a recent breakout. Two of the breakouts remain in play. That is impressive.
The stock has moved higher 7 out of the past 10 earnings reports where there was significant price movement.
The seasonal chart shows March tends to be "soft." However, May and then later in the year are seasonally good for bulls.
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 |
|
19% |
1/5/2017 | 85.99 | 102.84 | Still in play |
|
27% |
10/28/2016 | 80.98 | 102.84 | Still in play |
|
4% |
3/30/2016 | 85.50 | 89.66 | 4/18/2016 |
|
6% |
2/18/2015 |
81.52 |
86.69 |
4/21/2015 |
|
12% |
10/24/2014 | 71.94 | 80.68 |
1/12/2015 |
(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 - MAR - AVERAGE |
| TTD's Quality Rating of Stock - GGAL - AVERAGE |
| TTD's Quality Rating of Stock - NEE - AVERAGE |
| TTD's Quality Rating of Stock - INSW - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts Wednesday. Bears be selective. Stock market has pulled back into a consolidation after its recent big run from last November.
TTD's short from Tuesday was Intrexon Corp. (XON) at $19.36. Wednesday, XON declined to $19.19.
LB, based in Columbus, Ohio, sells bath and beauty products. Annual revenues: $12.6 billion. LB's stock falls sharply Wednesday. The stock was down graded by KeyBanc. TTD sees more on the downside. 
So far today, LB is trading 5 million shares. Its average daily volume is 5.9 million shares.
LB's stock gapped lower in the morning and fell to an intraday low of $47.34.
The stock then lifted slightly and trended sideways the rest of the day.
Tape Action
LB's tape action shows the recent block trades.
One can see the price for the blocks falling from $49.18 in the prior session to as low as $47.56.
A key bearish trade came in the morning when a block of 38,629 shares crossed the tape at $48.38.
That was down sharply from the prior block trade at $49.18 on 149,316 shares.
Business
LB sells women's intimate and other apparel, personal care and beauty products.
The company operates Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International.
LB operates the retail brands, which include Victoria's Secret, Bath & Body Works, La Senza and Henri Bendel. Henri Bendel.
Earnings
This fiscal year ending in January analysts are forecasting a 15% drop in profits to $3.19 a share from $3.75 the year before.
Net for the fiscal first quarter ending in April is expected to fall 59% to 24 cents a share from 59 cents a year before.
They for the fiscal second quarter net is expected to drop 33% to 47 cents a share from 70 cents the year before.
Charts
LB's daily chart shows the stock trending lower down to around $50 from $75 back in December. The stock tried to form a bottom. However, Wednesday, it slides below key support as volume picks up.
LB's 12-month performance chart shows the stock losing 43% versus a 15% gain for the stock market.
Insiders were recent sellers around $76 to $51. They were buyers using stock options around $87 to 41.
Strategy Opinion: TTD is targeting LB for a decline to $41 within the next few months or sooner. A protective stop buy can be placed near $49.50.
Suitability: Average Bears.
| TTD's Quality Rating of Stock - LB - 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.)
