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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 1
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small as stock market falls sharply. Bulls be conservative and watchful of all positions. Stock market showing weakness and now vulnerable to the downside.
(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, As Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - LUX - AVERAGE
LUX, based in Milano, Italy, makes eyeglass frames and sunglasses. Annual revenues: $7.3 billion. LUX's stock breaks out from an 11-month flat base. The stock moves to a new all-time high which is bullish. So far today, LUX is trading a heavy 157,565 shares, almost double its average daily volume of 90,000 shares.
TTD highlighted LUX as a breakout at our midsession video show on the Web Wednesday.
LUX's daily chart shows the stock moving higher in the morning and clearing its breakpoint.
The stock worked to a peak of 57.55 around midday. It then trended mostly sideways the rest of the afternoon.
TTD's clip of the tape shows LUX's recent block trades.
One can see the price for the blocks climbing from $53.74 a few sessions ago to as high as $57.09 on Wednesday.
A key bullish trade came in the morning when a block of 7,783 shares crossed the tape at $56.95.
That was up from the prior block at $56.11 on 10,588 shares.
LUX makes eyeglass frames and sunglasses for the mid and premium priced markets.
The company's products, are produced in four facilities based in Northern Italy/
They cover some 1,700 styles available in a wide array of colors and sizes.
The eyeglass and sunglass frames manufactured by Luxottica are sold through 12 wholly-owned distributors in the United States, Canada, Italy, France, Spain, Portugal, Sweden, Germany, the United Kingdom, Brazil, Switzerland and Mexico.
LUX's 12-month performance chart shows the stock appreciating 13% versus a 19% gain for the S&P 500 index. LUX has lagged the general market.
LUX's long-term chart shows the stock trading around 10 back in 2003. The stock advanced to a peak of 39 by 2007, the top in the prior bull market.
The stock then fell back to 11 in 2009 due to the subsequent bear market. However, since then the stock has been working higher having soared to 57. Today, it makes a new high, which is bullish.
LUX's daily chart shows the stock in a long flat base. The stock edged out of the base in the prior session.
Wednesday, it clears the base even while the general stock market moves sharply lower.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) fell back in January when the stock moved lower with heavy volume.
However, since then the AD line has stabilized.
This year, analysts are forecasting a 16% increase in LUX's earnings to $2.01 a share from $1.74 a year ago.
The stock sells with a price-earnings ratio of 28. That is high given the earnings growth rate.
Going out to 2015, the Street looks for an 11% gain in net to $2.23 a share from $2.01 anticipated for this year.
The Street is forecasting earnings for the first quarter to rise a modest 7% to 48 cents a share from 45 cents a year ago.
LUX tends to come in close to the Street estimate. It topped the consensus four out of the past six quarters.
Going out to the second quarter profit growth should increase with net rising 14% to 67 cents a share from 59 cents a year ago.
Going out to 2015, analysts project an 11% improvement in earnings to $2.23 a share from the anticipated $2.01 this year.
Strategy Opinion: TTD is targeting LUX for a move to 65 off this breakout. A protective stop can be placed near 53 giving it some room.
TTD rates LUX an average intermediate-term play.
Sponsorship: Average. The largest fund holder is the 3-star rated Scout International Fund with a 0.41% stake.
The largest fund buyer recently was the 3-star rated Franklin International Growth Fund which purchased 62,000 shares.
LUX has 477 million shares outstanding. Institutions hold 3% of the stock.
Insider Activity: Not available. Currently, 2 analysts follow the stock, and both have a strong buy, up from one three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Luxottica Group - (LUX)
|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
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 - 11
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Short list expands as stock market pulls back. Bears can be venturesome. TTD's short from Tuesday was DSW Inc. (DSW) at 35.67. Today, DSW has declined to 35.24 and is working well for bears.
PLCE, based in Secaucus, N.J., makes and sells childrens clothes. Annual revenues: $1.8 billion. PLCE's stock falls sharply today undercutting key technical support. So far today, PLCE is trading 302,475 shares. Its average daily volume is 539,000 shares. TTD sees more on the downside.
TTD highlighted PLCE as a short at our midsession video show on the Web Wednesday.
PLCE's stock moved lower in the morning extending its decline from the prior session.
The stock hit an intraday low at 49.12 in the early afternoon. The rest of the session it trended sideways unable to mount a rally.
PLCE's tape action shows the recent block trades.
One can see the price for the blocks declining from $51.93 to as low as $50.48.
A key bearish trade came in the morning when a block of 6,600 shares crossed the tape at $50.48. That was within a sequence of block trades that started from a decline of a block trade from $51.58.
PLCE produces apparel, accessories and footwear for children sizes 0-14.
The company has differentiated departments and serves the wardrobe needs of Girls and Boys (sizes 4-14), Baby Girls and Boys (sizes 6 mos.-5T) and Newborn (sizes 0-18 mos.). PLCE has 1,107 stores.
This fiscal year ending in January of 2015 analysts are forecasting a 7% decline in net to $3.02 a share from $3.26 a year before. Net for the fiscal first quarter ending in April should drop 25% and in the fiscal second quarter ending in July show a loss.
PLCE's daily chart shows the stock trending lower and today cutting below key technical support. The stock's accumulation - distribution line (bottom of chart) is trending lower showing clear selling pressure.
Strategy Opinion: TTD is targeting PLCE for a decline to 44 within the next few months or sooner. A protective stop buy can be placed near 51.
|TTD's Quality Rating of Stock - PLCE - BELOW 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.)