Ticker Tape Digest

Wednesday - March 28, 2018

TTD does not publish Thursday - a short session. Market closed Friday. We resume Monday

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 Accumulation Trades.

  We also feature stocks under Significant Accumulation that are poised to breakout.

   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.

Wednesday - March 28, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  4

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts but some interesting plays for aggressive bulls.

Stock market  -  Bearish. Market daily and weekly averages bearish. Monthly market averages still holding bullish. Bulls be conservative and patient.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Wednesday

(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)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Dominos Pizza Inc. (DPZ) - 233.87, up 2.29 - Breakpoint 235.35

Net to surge 49% This Year, TTD Targets 280 

    DPZ, based in Ann Arbor, Mich., operates a pizza  franchise system in 50 countries. Revenues: $2.8 billion. DPZ's stock drives higher Wednesday and breaks out from its six-week flat base. The stock is close to making a new all-time high.

  So far today, DPZ is trading a light 738,546 shares. Its average daily volume is 745,000 shares.

  TTD highlighted DPZ as a stock to accumulate in anticipation of a breakout.

 The stock has a low beta of 0.43 versus 1.00 for the stock market.

  DPZ's stock moved sideways in the morning hugging its breakpoint line.

  Then in the afternoon it pushed higher and finished above its breakpoint line despite a drop in the stock market.

 Tape Action

   DPZ's tape action shows the recent block trades.

  One can see the price for the blocks climbing from  $231.58 in the prior session to as high as $233.97 Wednesday.

   A key bullish trade came in the morning when a block of 10,211 shares crossed the tape at 231.99.

  That was up from  the prior block at $231.58 on 2,042 shares.

  Near the close a block of 22,942 shares (duplicated) crossed the tape at $233.87.

  The trade came on an up tick from the prior trade at $233.86 on 120 shares.

  Business

  DPZ operates stores delivering pizzas. It is primarily a  franchised system..

  The company operates through three segments: Domestic Stores, Supply Chain, and International Franchise.

  It has 13,800 stores in 85 international markets.

  Charts

  DPZ's 12-month performance chart shows the stock appreciating 28% versus a 12% gain for the stock market.

  Insiders at DPZ have been buying the stock at prices from  $7 to $10 a share. They were sellers from $184 to $227 a share.

  DPZ's long-term chart shows the stock in a solid long-term up trend holding above its long-term moving average line.

  The stock climbed from $11 a share in 2010 to a peak of 236 in February.

  DPZ's daily chart shows the stock climbing from  $180 back in December to a peak around $233 by February.

 The stock put down a flat base and breaks out Wednesday.

  The basing work was done a rising 50-day moving average line. That shows the stock is in a good up trend.

  The stock's CCI  momentum  indicator is strongly  bullish.

  Earnings Outlook

  This year, analysts are forecasting a strong 49% surge in net to $7.93 a share from the $5.34 the year before.

  The stock sells with a price-earnings ratio of 29.  TTD sees that as attractive for value-growth investors.

  Looking out to 2019, the Street expects a 16% increase in net to $9.20 a share from the anticipated $7.93 this year.

  Ten analysts follow the stock.

  Profits for the upcoming first quarter are expected to leap 40% to $1.76 a share from $1.26 in the prior year.

  The company has topped the consensus estimate the past seven quarters.  

  Going out to the second quarter of 2018, analysts are predicting a 30% gain in net to $1.72 a share from  the $1.32 the year before.

 Strategy Opinion: TTD is targeting DPZ for a move to $280.  A protective stop can be placed near $225.

 TTD sees chances for a stock split which could boost the stock. TTD rates DPZ a good intermediate-term play.  

Suitability:  Average Bulls.

                          TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success -  Modestly Bullish.  DPZ has scored modest gains off its recent breakouts.

Probability - Earnings Response - Bullish.  DPZ rose 8 times after the past 12 earnings reports when there was a significant change.

Probability:  Seasonal Success - Neutral.  DPZ  declined an average of 0.2% in March and 1.5% in April the past five years. However, it was up an average of 3.7% in May.  

           Stock's Prior Performance After A Breakout

(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

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 - 6

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Small list of breakdown stocks. Aggressive Bulls can be venturesome.

TTD's short from Tuesday was Tesla inc. (TSLA) at $279.18. It closed at $257.78, down 21.40 Wednesday.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Sohu.com Inc. (SOHU) - 29.71, down 2.35

Loss Expected This Year, TTD Sees Decline to 23

  SOHU, based in China, is an online media, search and game service firm. Annual revenues: $1.9 billion. SOHU's stock falls sharply Wednesday and undercuts key technical support. TTD sees more on the downside.

  So far today, SOHU is trading 607,203 shares. Its average daily volume is 466,000 shares.

  SOHU's stock gapped lower in the morning cutting below key technical support.

  The stock then trended sideways into the early afternoon. Then SOHU turned down and closed near its low for the session. That is bearish.

   Tape Action

  SOHU's tape action shows the recent block trades.

  One can see the price for the blocks falling from $32.69 in the prior session to as low as $29.71 near Wednesday's close.

  A key bearish trade came late on Tuesday when a block of 22,753 shares (duplicated) crossed the tape at $32.06.

  That was down from the prior block trade at $32.69 on 4,199 share.

   Business

  SOHU provides online products and services in China. The company operates through three units: the Sohu segment; the Sogou segment, and the Changyou segment.

The Sohu unit handles advertising, online media and various content. The search business  offers advertisers pay-for-click services, as well as online marketing services on Web directories operated by Sogou.

 The Changyou's business consists of the online game business.

 Earnings:

  This year, analysts are forecasting SOHU will show a loss of $3.80 a share compared with a loss of $8.77 the prior year.

  For the upcoming first quarter, SOHU is expected to report a loss of $1.88 a share compared with a loss of $1.75 the prior year.   

Charts:   

  SOHU's stock has been trending lower since peaking at $70.65 in October. Wednesday, SOHU cuts below key support The stock is at a muli-year low.

  SOHU's 12-month performance chart shows the stock down 22% versus a 14% gain for the stock market.

Strategy Opinion: TTD is targeting SOHU for a decline to $23 within the next few months, or sooner. A protective stop buy can be placed near $31

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  SOHU rose just 3 times after the past 10 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Bearish.  SOHU declined an average of 2.8% in March and fell 0.3% in April the past several years.

   Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2018

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show 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.

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 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)