Daily - Go to TTD's Tape of Stock Charts - Thursday, March 29 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 26 |
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 - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts. Stock market finishes mixed. Upside momentum slowing now. Bulls be selective and watchful of all stops.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bullishl
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - XRTX - AVERAGE |
XRTX, based in England, makes data storage subsystems and network systems. Annual revenues: $1.5 billion. XRTX's stock breaks out today from a 10-week flat base and makes a new 52-week high. After the close the company reported a big jump in earnings for the fiscal first quarter ended February 28. So far today, the stock is trading 698,069 shares, more than double its normal daily volume of 260,000 shares.
After the close, XRTX reported net for the fiscal first quarter jumped to 40 cents a share from 24 cents a year ago on a non-gap basis.
The company also raised its quarterly dividend to 7.5 cents a share from 6.5 cents.
It also projected net for the fiscal second quarter of 43 cents a share.
XRTX's 10-minute chart shows the stock climbing from 17 in the morning to 17.82. There was some heavy intraday volume late in the session. In some after hour trading the stock declined. That would seem to be a surprise. So, one will have to see how the stock opens on Friday.
TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks climbing from $17.05 to $17.82.
That showed consistent institutional buying interest. A key bullish block came in the afternoon when a block of 15,419 shares crossed the tape at $17.80. That was up from the prior block at $17.42.
XRTX provides enterprise data storage subsystems and network technology.
The company makes enabling technology that provides their OEM and disk drive manufacturer customers with data storage products to support high-performance storage and data communication networks.
XRTX's 12-month performance chart shows the stock appreciating 59% versus an 8% gain for the S&P 500 index.
The stock's long-term chart shows the stock coming public in July of 2004 and trading around 12. The stock peaked in early 2006 at 33.63. It then went into a bear market that became nasty in 2008 when the stock fell to $1.66. Ouch! XRTX has since made a nice comeback.
XRTX's daily chart shows the stock advancing from around 12 back in October to a peak near $17.50. It then formed a flat base bracketed between roughly 16 and 17.50. That is tight.
The breakout today comes with a widening of the spread and an expansion in volume. Also, most of the basing work was above a rising 50-day moving average line. That is bullish.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart has broken out to the upside. That is good confirmation of strong buying.
This fiscal year ending November of 2012 is expected to jump 42% to $1.42 a share from $1 a year ago. The stock sells with a price-earnings ratio of just 12.
Net for the fiscal second quarter ending May of 2012 should climb to 31 cents a share from a loss of 12 cents a year ago.
Strategy Opinion: The selling in XRTX after the close makes the stock one to watch closely at the opening on Friday. If it can hold its breakout, TTD is targeting XRTX for a move to $22.50 within the next few months. A protective stop can be placed near 16.50.
TTD rates XRTX an average intermediate-term play with a lot depending on the earnings prospects for fiscal 2013 ending in November
Sponsorship: Good. The largest fundholder is 4-star rated Fidelity Low-Priced Stock Fund with a big 11% stake. It has held its position steady. A key buyer recently was 4-star rated Absolute Strategies which added 48,500 shares. XRTX has 27.6 million shares outstanding. Institutions hold 75% of the stock.
Insider Activity: Not available. Five analysts follow the stock, 2 have a buy, down from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Xratex Ltd. - (XRTX) |
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 | 11 | 0 | 3 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - AET - AVERAGE |
TTD's Quality Rating of Stock - UNH - AVERAGE |
TTD's Quality Rating of Stock - FUL - AVERAGE |
TTD's Quality Rating of Stock - RECN - BELOW AVERAGE |
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 - 13
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown list expands as stock market advance of recent weeks shows signs of ending for the time being. TTD's short from Wednesday was Bill Barrett Corp. (BBG) at 25.95. The stock has declined to 25.18 so far today.
UPL, based in Houston, produces oil and gas. Annual revenues: $1.1 billion. UPL's stock breaks below key technical support today and resumes its down trend. The stock's weakness today could also be linked to the bearish action in the oil sector. So far today, UPL is trading 2.3 million shares. Its average daily volume is 3.7 million shares. TTD sees more on the downside.
UPL's stock gapped lower at the opening and continued to work lower through the day. In the afternoon, it hit an intraday low of 22.17.
The tape action is very bearish. A hint of trouble showed up on the tape on March 27 when a block of 141,900 shares crossed the tape at $23.44. That was down from the prior block trade at $23.50.
So far the price on the most recent block trades has declined to $22.75.
UPL is working the Green River Basin of Wyoming. It also has oil reserves in Bohai Bay, offshore China.
This year, analysts are forecasting a 38% drop in UPL's earnings to $1.56 a share from $2.52 a year ago. Going out to 2013, they look for an 8% drop in net to $1.44 a share.
UPL's daily chart shows the stock declining from 36 in November to 22. The stock tried to form a bottom, but is failing.
Strategy Opinion: TTD is targeting UPL for a drop to 18 within the next few months, or sooner. A protective stop buy can be placed near 23.90.
TTD's Quality Rating of Stock -UPL - 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.”
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.)