Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, March 26
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, March 26 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 breakout and Short Selling report.
It contains Breakout Stocks and Stocks under 
Significant Accumulation.
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Total Buy Breakouts so far today - 6
Stocks Screened - 8,200
Bull side - Energy stocks dominate breakout list. Bulls be selective.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bearish, Nasdaq Bearish
DVN, based in Oklahoma City, O., produces oil and gas. Annual revenues: $11.3 billion. DVN breaks out from a 5-week flat base today and hits a new high. The stock is one of the strongest among the big cap oil producers. So far today, DVN is trading 5 million shares. Its average daily volume is 5.1 million shares. TTD highlighted the stock as a breakout at midsession show on the web. 
Many energy stocks were strong today. The price of crude futures climbed $4.68 a barrel to $105.90.
The tape action in DVN was bullish. TTD's clip of the tape in the morning highlights a big block of 32,700 shares crossing on an up tick to $103.85 from the prior trade at $103.69. The action showed good institutional buying.
DVN was formed in 2003 by the merger of Devon and Ocean Energy. It is now one of the largest independent exploration and U.S. production companies.
DVN's reserves are 60% natural gas and almost entirely in North America. Midstream and marketing operations accounted for about 16% of total revenue.
TTD's performance chart of DVN versus the S&P 500 (see below) shows DVN with an appreciation of 44% the past 12 months versus a decline of 4% for the S&P. So, the stock has been easily outperforming the general market.
TTD's long-term chart of DVN shows the stock's powerful bull market over the past five years during which it has climbed from 22 to 107. It remains in a bull market phase.
Near-term, DVN rallied quickly and powerfully from 75 in January to 107. by late February. It then set up a five-week base. Now, it is on the move again.
So far today, the stock has not picked up strong volume. So, that is something to be of concern. However, the stock's overall technicals are strong. The accumulation - distribution line (bottom of chart) is trending higher and has broken out to a new peak. That is good confirmation that there is good buying supporting DVN.
The TTD momentum indicator (top of the chart) is bullish.
This year, DVN's earnings should increase 39% to $8.35 a share from $6 a share a year ago. The company is obviously benefiting from the rise in energy prices.
DVN's stock sells with a price-earnings ratio of just 12 based on this year's net. TTD sees that as reasonable.
For the upcoming first quarter, net should climb 58% to $2.01 a share from $1.27 a year ago. The second quarter profit growth is expected to slow to 9%.
Strategy Opinion: TTD sees DVN as a breakout trading type play. That is we look for the stock to get to 125 but would be looking to take profits. A protective stop can be placed near 100. TTD rates DVN just an average intermediate-term play. We are concerned about the slowdown in quarter profit growth.
Sponsorship: Very Good. The largest fund holder is 4-star rated American Funds Growth Fund of America with a 4% stake. It was a recent purchaser of 800,000 shares. Also, 5-star rated Vanguard Energy Fund added 106,000 shares.
Insider Activity: Neutral. Insiders have been steady buyers of the stock using options. They have turned around and sold. Right now, 15 analysts follow the stock, 5 have a buy, down from 8 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Devon Energy Corp. (DVN) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 | 13 | 0 | 1 |
(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.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Breakout Stocks
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 - 4
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks so far today. Bears be conservative.
(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.)
JBL, based in St. Petersburg, Fla., provides electronic manufacturing services for computer systems and other products. Annual revenues: $12.4 billion. JBL falls sharply today after making a disappointing earnings outlook. So far today, JBL is trading 15 million shares, five times its average daily volume of 3.3 million shares. TTD sees more on the downside. 
TTD's clip of the tape shows a big block of 104,900 shares crossing in the morning on a modest down tick to $9.49 from the prior trade at $9.50. The action showed heavy institutional selling pressure at that time. TTD did see some bargain hunting on the tape. Nevertheless the stock's momentum is to the downside.
The company said earnings for the fiscal third quarter ending May 30 will come in below analysts estimates. It blamed the slowdown in the U.S. economy. It said fiscal third quarter net should be 18 to 22 cents a share.
The Street has been forecasting an 80% rise in net to 29 cents a share from 16 cents a year ago.
Jabil Circuit provides electronics Services include design, component sourcing and procurement, supply-chain management, assembly, and repair. Its customers include Cisco Systems, Nokia (13%), Hewlett-Packard, and Philips.
TTD's daily chart shows the stock in a clear down trend from 25. The stock tried to form a bottom near 20, but that has collapsed. The stock's TTD momentum indicator (top of the chart) is bearish. The accumulation - distribution line (bottom of chart) is extremely bearish. TTD is targeting JBL for a drop to 7 within a few months, or sooner. It a short play most suitable for aggressive bears.
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.)
