Daily - Go to TTD's Tape of Stock Charts - Tuesday. March 25, 2014 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 24, 2013 |
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.
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 - 1
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Only one breakout. Stock market showing weakness now in the small cap sector. Bulls be very careful. Blue chips holding its ground.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - SLB - AVERAGE |
SLB, based in Houston, provides oilfield services. Annual revenues: $46.5 billion. SLB's stock breaks out today from a six-month, cup-and-handle base. The stock was the only breakout of the day. So far today, SLB is trading a heavy 9.6 million shares. Its average daily volume is 5.8 million shares.
TTD highlighted SLB as a potential breakout on Monday. It was also featured in TTD's mid-session video show on the Web Tuesday.
SLB's stock rose steadily in the morning and cut across its breakpoint line in the morning (see 10-minute chart).
The stock reached an intraday peak of 95.88. The stock then trended sideways holding above its breakpoint line. Near the close volume picked up sharply due to a massive large block.
TTD's clip of the tape shows the recent block trades.
One can see some aggressive institutional buying in the morning
A key block trade came when 196,165 shares crossed the tape at $94.49.
That was up sharply from the prior block at $93.23 on 228,653 shares.
Then later in the session there was some institutional selling.
SLB operates in two business segments, Schlumberger Oilfield Services and SchlumbergerSema.
Schlumberger oilfield services is the leading provider of exploration and production services, solutions and technology to the international petroleum industry.
SchlumbergerSema is a leading information technology services company providing a combination of domain expertise and global capabilities delivered on a local basis.
SLB's 12-month performance chart shows the stock appreciating 30% versus a 20% gain for the stock market.
SLB's long-term chart shows the stock climbing from 20 back in 2003 - adjusted for a stock split - to an all-time high of 114.84 in 2007, the top in the prior bull market.
The stock then fell back to 36 in 2008 due to the bear market. Since then SLB has been working higher. The stock's breakout came with strength in some other oils plays. That shows the sector is perking up.
SLB's daily chart shows the stock climbing from 80 back in August to a peak near 95 by October.
Today, the stock breaks out from a cup-and-handle base.
The past three sessions SLB pushed higher setting up the potential for a breakout.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is trending higher.
This year, analysts are forecasting a 22% increase in SLB's earnings to $5.78 a share from $4.75 a year ago.
The stock sells with a price-earnings ratio of 16. TTD sees that as reasonable and possibly attractive to some value investors.
Going out to 2015, the Street projects an 18% jump in profits to $6.80 a share from the anticipated $5.78 a share anticipated this year.
Net for the upcoming first quarter should increase 21% to $1.22 a share from $1.01 a year ago. The highest estimate on the Street is at $1.30 a share.
TTD sees very good chances for a modest upside earnings surprise. SLB topped the consensus estimate for the past four quarters by 2 to 5 cents a share. (See table)
Going out to the second quarter, the Street is forecasting a 20% gain in net to $1.37 a share from $1.15 the year before.
Strategy Opinion: TTD is targeting SLB for a move to 112. That is up from our prior projection target of 108.
A protective stop can be placed near 91 giving it room.
TTD rates SLB a good long-term play for a big cap stock.
Sponsorship: Excellent. A key fund buyer recently was the 5-star rated Vanguard Wellington Fund which purchased 1.5 million shares.
Also, the 3-star rated American Funds Growth Fund of America was a buyer of 1.1 million shares recently.
SLB has 46.5 million shares outstanding. Institutions hold 81% of the stock.
Insider Activity: Slightly Bearish. Some insiders were recent buyers around $18 to $28. The sold around $92. Currently, 25 analysts follow the stock, 24 have a buy, up from 23 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Schlumberger Ltd. - (SLB) |
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 | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
None
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 - Modest number of shorts. Stock market continues to rally. Bears remain conservative.
DSW, based in Columbus, Ohio, sells branded footware. Annual revenues: $2.4 billion. DSW's stock falls sharply today undercutting key technical support. So far today, DSW is trading a heavy 2.7 million shares, more than double its average daily volume of 1.1 million shares. TTD sees more on the downside.
TTD highlighted DSW as a short at our midsession video show on the Web Tuesday.
DSW's stock moved lower in the morning and continued the bearish trend into the early afternoon. It hit an intraday low of 35.18.
Then late in the afternoon it lifted slightly.
DSW's tape action shows the recent block trades.
One can see the price for the blocks declining from $37.26 to $36.
A key bearish trade came in the morning when a block of 102,002 shares crossed the tape at $36.50.
That was down from the prior block trade at $36.91 on 42,700 shares.
DSW is a specialty branded footwear retailer operating DSW stores. The company also supplies other retailers.
DSW offers dress, casual and athletic footwear for women and men, as well as accessories. The Company’s typical customers are brand, quality and style-conscious shoppers who have a passion for footwear and accessories.
The company operates 364 stores in 41 states, the District of Columbia and Puerto Rico. DSW separates its merchandise into four primary categories: women's footwear; men's footwear; athletic footwear; and accessories and other.
Analysts are forecasting DSW will show just a 1% increase in earnings for the fiscal year ending in January of 2015. Net for the upcoming fiscal first quarter should be flat at 50 cents a share.
DSW's daily chart shows the stock trending lower and today cutting below key support with expanding volume. The stock's accumulation - distribution line (bottom of chart) is trending lower showing clear selling pressure.
Strategy Opinion: TTD is targeting DSW for a decline to 30 within the next few months or sooner. A protective stop buy can be placed near 37.
TTD's Quality Rating of Stock - DSW - 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.)