Daily - Go to TTD's Tape of Stock Charts - Wednesday, March 24
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Daily - Go to TTD's Tape of Stock Charts - Wednesday, March 24 |
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Weekly - Bullish Investors Go To TTD Bargain Setups - Feature - Monday, March 22 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday March 22 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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.
Stocks Screened - 8,200
Bull side - Breakout list shrinks today and quality is below average. Bulls be conservative. Stock market pauses and holds its ground well. It is due for a rest.
The action indicates money is not fleeing stocks.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
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TTD's Quality Rating of Stock - SYK - AVERAGE |
SYK, based in Kalamazoo, Mich., produces medical products, especially for orthopedic situations. Annual revenues: $6.7 billion. SYK's stock breaks out from a 10-week, cup-and-handle base today with a modest expansion in volume. The move carries the stock to a new 52-week high. So far today, volume is running at 2.3 million shares. Its average daily volume is 1.5 million shares. 
SYK was featured at TTD's show on the Web Wednesday.
SYK's 10-minute chart shows the stock driving sharply higher in the morning. It faded back late and held on the breakpoint line. In the late morning, it pushed higher again but with lower volume.
SYK did disclose that issues raised by the FDA about a plant in New Jersey had been resolved.
SYK is a big cap firm and has been showing steady earnings growth the past few years.
TTD's clip of the tape shows the recent big block trades. A key trade took place on Monday when a big block of 74,600 shares crossed the tape at $56.85. That was up from the prior block trade at $56.80. 
TTD sees the tape action indicating subtle institutional accumulation.
SYK is a medical technology company with a range of products in orthopaedics.
The company's products include implants used in joint replacement, trauma, spinal and craniomaxillofacial; surgical equipment and surgical navigation systems.
It also makes items used for endoscopic and communications systems; patient handling and emergency medical equipment, and other medical products.
SYK's performance chart for the past 12 months shows the stock appreciating 75%. That is much better than the 45% gain for the S&P 500.
SYK's long-term chart shows the stock as a "steady climber" in most cases. It was knocked back during the bear market, but is recovering nicely. However, it does have "overhead resistance in the 60 area. So, it will be important to see how the stock manages getting through the 60 area.
SYK's daily chart shows the stock with a strong advance from 40 to 57. The subsequent base is a cup-and-handle pattern.
The TTD momentum indicator (top of chart) has been strongly bullish for almost two months. That is impressive.
The accumulation - distribution line (bottom of chart) is in a strong up trend. It broke out to the upside before the price of the stock. So, that indicates strong buying while the stock was basing.
This year, analysts forecast an 11% rise in SYK's earnings to $3.26 a share from $2.96 a year ago. The stock sells with a price-earnings ratio of 17, which is reasonable.
Going out to 2011, the Street looks for a 12% improvement in earnings to $3.66 a share from the anticipated $3.26 in 2010.
SYK will report first quarter earrings on April 20.
The Street is looking for a 9% increase in net to 78 cents a share from 71 cents a year ago. The highest estimate on the Street is at 79 cents a share. TTD does not expect any surprises. SYK tends to come in within a penny of the Street consensus.
Strategy Opinion: SYK is a conservative, big cap breakout play. TTD is calling for SYK to climb to 65 within the next few months. A protective stop can be placed near 54 giving it some room so as to make it playable. TTD rates SYK an average intermediate-term play best suited for conservative investors.
Sponsorship: Very Good. Some top funds have been recent buyers. 5-star rated Fidelity Select Medical Equipment Fund was a recent buyer of 200,000 shares. Also, 4-star rated T. Rowe Price Growth Stock Fund purchased 420,700 shares. SYK has 398 million shares outstanding.
Insider Activity: Slightly Bearish. Insider have been modest sellers of the stock recently. Currently, 30 analysts follow the stock, 12 have a buy, up from 10 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Stryker Corp. - (SYK) |
| 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 | 10 | 0 | 4 |
(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - LEN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - SRI - AVERAGE |
| TTD's Quality Rating of Stock - MWE - BELOW AVERAGE |
| TTD's Quality Rating of Stock -AHT - BELOW AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To 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 - 8,2007
Long-Term Environment for bears: Unfavorable.
Bear Side - Still very few breakdown stocks. Bears be patient and conservative. Stock market remains in overall up trend.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
ESE, based in St. Louis, makes engineered products for the utility industry. Annual revenues: $584 million. ESE's stock falls sharply today with heavy volume. There was no specific news linked to the drop. However, ESE is expected to show a big drop in earnings for the fiscal second quarter ending March 31. So far today, ESE is trading 1.1 million shares, eight times its normal daily volume of 127,000 shares. 
ESE's stock headed lower in the morning. It bottomed around noon at 31. However, later in the afternoon it headed even lower picking up more volume. The intraday technical pattern was very bearish.
TTD's clip of the tape shows the action in the morning. One can see the price for the blocks declining from $35.17 to $31.02. The blocks are about the same size. The tape action indicated clear institutional selling pressure.
Analysts forecast ESE's net for the fiscal second quarter ending March 31 will drop 58% to 22 cents a share from 52 cents a year ago.
ESE produces engineered products and systems sold to utility, industrial, aerospace and commercial firms.
This fiscal year ending September 30, the Street is forecasting a 20% drop in ESE's net to $1.49 a share from $1.86 a year ago.
ESE's chart shows the stock plunging back in November. It then staged a modest rally, but rolled over again. Today, it knifes lower with big volume. The accumulation - distribution line (bottom of chart) breaks to the downside.
Strategy Opinion: TTD is targeting ESE for a decline to 25 within the next few months. A protective stop buy can be placed near 31.50.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
