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 Trading Strategies Overview and Performance
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns.
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit."
Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend.
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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 8
Stocks Screened - 8,200
Bull side - Breakout list modest today with a metal stocks leading the way as a group. Stock market extended. Bulls be watchful now and more conservative. Major averages showing signs of slowing momentum. This week will be holiday shortened.
The action indicates money is not fleeing stocks.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
TTD's Quality Rating of Stock - TCK - ABOVE AVERAGE
TCK, based in Vancouver, Canada, produces coal, copper and zinc. Annual revenues: $7.5 billion. TCK's stock clears a 12-week, cup-and-handle base today and hits a 52-week high. The stock is part of a strong acting mining group today. So far today, TCK is trading 5.9 million shares. Its average daily volume is 4.7 million shares.
TTD highlighted TCK as a breakout at our midsession show on the Web Tuesday.
TCK's 10-minute chart shows the stock pushing higher late on Monday. Today, it drives higher comfortably clearing its breakpoint.
The stock was able to hold the bulk of its gain as the stock market firmed in the afternoon.
TTD's clip of the tape shows the big block trades. One can see the price for the blocks climbing from $40.80 to $43.35. That shows good institutional buying interest.
A key trade took place in the morning on Tuesday when a big block of 33,000 shares crossed the tape at $42.75. That was up sharply from the prior block trade that crossed at $4.188. That showed aggressive institutional buying interest.
TCK mines, processes, smelts and refines metals.
. Its produces metallurgical coal, copper and zinc. The Company also produces precious metals, lead, molybdenum, electrical power, fertilizers and various specialty metals. Metal products are sold as refined metals or concentrates. It also owns an interest in certain oil sands leases, and has a partnership interest in an oil sands development project.
TCK is one of the strongest stocks the past several months. Its 12-month performance chart shows the stock appreciating a sensational 700% compared with a 40% gain for the S&P 500 index.
TCK's long-term chart shows the stock soaring from 4 back in 2003 to a peak of 53 in 2008. The stock then went into a nosedive during the bear market falling back to 2.60. Ouch! It has since recovered sensationally and is pushing 43.
TCK's daily chart shows the stock edging out from its base on Monday. Today, the stock extends its advance clearing the base. The structure of the base is bullish with a good "handle" set up through March.
The follow up move today is very encouraging to bulls. TCK's TTD momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend. That reinforces the fact that TCK is showing good underlying buying that is support the advance in the price.
This year, analysts forecast TCK will show a 129% surge in net to $3.34 a share from $1.46 a year ago. The stock sells with a price-earnings ratio of 12, which is low given earnings prospects.
Looking out to 2011, the Street is projecting a 27% gain in net to $4.24 a share from the anticipated $3.34 a share this year.
The company will report first quarter results on April 20.
The Street is looking for a 21% increase in net to 46 cents a share from 38 cents a year ago. The highest estimate is at 58 cents a share. That is high and shows some analysts see potential for a big quarter. TCK tends to be "up and down" with its results. So, it will be interesting to see what they post.
The company is benefiting from good demand from Asia for its coal products.
Strategy Opinion: TTD is targeting TCK for a move to 52 off this breakout. A protective stop can be placed near 39 giving it some room. TTD rates TCK a good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. There were several key buyers recently. 5-star rated CGM Realty purchased 2.1 million shares and 2-star rated CGM Focus picked up 6.3 million shares to make it the largest fund holder. Ken Heebner runs both funds. Also, 5-star rated CGM Mutual Fund, another Heebner entity, added 875,000 shares. TCK has 589 million shares outstanding.
Insider Activity: Not available. Nine analysts follow the stock, 7 have a buy, up from 4 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Breakout Profile Rating
Teck Resources Ltd. (TCK)
|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|
(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)
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - DHR - AVERAGE|
|TTD's Quality Rating of Stock - AME - AVERAGE|
|TTD's Quality Rating of Stock - TDG - AVERAGE|
|TTD's Quality Rating of Stock - VALE - AVERAGE|
Ticker Tape Digest provides a list of potential breakout stocks from our screen of companies that will show some of the strongest earnings gains. One of the best ways to play these stocks is to study the list and then place a stop buy order to catch the stock on the breakout.
One can take either a full position on the breakout if they are aggressive, or scale-in looking to add to the stake later if they are conservative. TTD's premarket breakout watch list gives you a great opportunity "to be prepared for the next key breakout stock just before it happens." The list will be updated daily and the screen monthly.
Guide: Symbol=Ticker, Name=Corporate name, Entry is the buy price to enter on the breakout, Last=prior close, Change=change from last close to prior, Date=date of price of close etc, Gain in blue is price above breakpoint (entry), Gain in red is price below breakpoint (entry)., % Gain in blue is % over breakpoint (entry), Gain in red is % below breakpoint (entry)
Ticker Tape Digest’s Daily List of “Stocks To 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 - 3
Stocks Screened - 8,2007
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears remain 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.)
GRS, based in Halifax, produces gold from its mine. Annual revenues: $186.8 million. GRS's stock falls sharply today in heavy trading after the company reported a sharp drop in earnings for the fourth quarter. The stock has been in a down trend. So far today, GRS is trading 2.7 million shares, almost triple its normal daily volume of 1.1 million shares.
GRS was highlighted by TTD as a short at our midsession show on the web today.
GRS fell at the opening and trended lower until the late morning. It hit a low of 17.71. In the afternoon, the stock trended sideways unable to stage a significant rally.
TTD's clip of the tape shows the recent big block trades in GRS. One can see the price for the blocks declining from $8.47 to $7.70. The blocks are about the same size. The tape action indicated steady institutional selling pressure.
GRS reported that net for the fourth quarter declined to 10 cents a share from 26 cents a year ago. The results were disappointing.
The Company owns two mines in Mexico, the Ocampo mine in Chihuahua State, and the El Cubo mine in Guanajuato State. It also owns the Guadalupe y Calvo advanced exploration property in Chihuahua State, Mexico.
This year analysts are forecasting a rebound in GRS's net to 82 cents a share. First quarter net is projected to rise sharply from a year ago.
GRS's daily chart shows the stock breaking below key support at 8 today with expanding volume. The stock's TTD momentum indicator (top of chart) has been bearish for several weeks. The accumulation - distribution line (bottom of chart) is in a downtrend. That indicates clear selling pressure for several months.
Strategy Opinion: TTD views GRS as a trading short. We look for the stock to drop to 5.40 within the next few months, or sooner. A protective stop buy can be placed near 8.50.
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.)