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 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 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 - 8
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list has some good looking plays. Some issues are reemerging from smaller bases after prior breakouts. Stock market holds in current up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bullish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - MKTX - AVERAGE
MKTX, based in New York, operates an electronic trading platform for bonds and fixed-income securities. Annual revenues: $303 million. MKTX's stock brakes out from a 5-week flat base Friday. The move carries the stock to a new all-time high. That is bullish.
TTD featured MKTX last month as a breakout back in February. The stock continues to work higher.
So far today, MKTX is trading 293,404 shares. Its average daily volume is 257,000 shares.
MKTX's 10-minute chart shows the stock breaking out in the morning.
The stock then hugged its breakpoint line. In the afternoon, it pushed higher clearing the breakpoint line and reaching an intraday high of 129.57
MKTX's tape action shows the recent block trades.
One can see the price for the blocks climbing from $124.83 in the prior session to as high as $129 Friday.
A key bullish trade came Friday when a block of 1,180 shares crossed the tape at $127.50.
That was up sharply from the prior block trade at $124.43 on 2,172 shares.
MKTX runs an electronic trading platform for fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide.
Its multi-dealer trading platform allows its institutional investor clients to request competing and executable bids or offers from its broker-dealer clients, and execute trades with the broker-dealer of their choice.
The company's trading platform provides access to liquidity in U.S. corporate bonds, emerging markets and high-yield bonds, European bonds, U.S. agency bonds, credit derivatives, and other fixed-income securities.
MKTX's 12-month performance chart shows the stock appreciating 50% versus a breakeven for the Stock market.
The chart also shows significant insider buying in recent months (see green bars on chart). That was followed by insider selling.
MKTX's stock came public in 2004 at $19.89. The stock fell back and then rose back to a peak near $20 in 2007, the top in the prior bull market.
However, the stock fell to $3.96 in 2008 due to the bear market. With the unfolding of the bull market, MKTX has soared to a an all-time peak of $129.57 set Friday.
MKTX's daily chart shows the stock climbing from 86 back in October to a peak near 115 by December.
The stock then put down a base bracketed between roughly 100 and 115.
It broke out and move up and formed a new and smaller base between 120 and 127.
MKTX's breaks out Friday from this smaller base. That puts the stock in a solid up trend.
The stock's CCI momentum indicator (bottom of chart) is in an up trend.
The accumulation - distribution line (very bottom of chart) is trending higher showing good underlying buying.
Analysts expect net for 2016 to climb 19% to $3.03 a share from $2.55 a year ago.
The stock sells with a price-earnings ratio of 42. That is high given the earnings growth rate. So, the stock is most suitable for aggressive investors.
Going out to 2017, the Street projects a 23% gain in net to $3.74 a share from the anticipated $3.03 this year.
Net for the upcoming first quarter should increase 15% to 75 cents a share from 65 cents the year before.
The highest estimate on the Street is at 78 cents a share. The company tends to come in close to the consensus.
Going out to the second quarter, profits are projected to rise 18% to 75 cents a share from 64 cents the year before.
Strategy Opinion: TTD is targeting MKTX for a move to 150 within the next few months.
A protective stop can be placed near 123.
TTD rates MKTX an average intermediate-term play. Its valuation is high. So, one will need to be watchful.
Sponsorship: Good. One of the largest fund buyers recently was the 4-star rated Neuberger Berman Genesis Fund which purchased 100,200 shares. It has a 2.3% stake.
The largest fund holder is the 3-star rated Wells Fargo Growth A Fund with a 4.3% stake. It was a recent seller of 98,000 shares.
MKTX has 37.5 million shares outstanding. Institutions hold 97% of the stock and insiders have 2%.
Insider Activity: Neutral. Not much activity lately.
Currently, 5 analysts follow the stock, 2 have a buy, the same as three months ago.
MKTX has a book value of $10.44 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Marketaxess Holdings Inc. - (MKTX)
|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
|TTD's Quality Rating of Stock - INGR - AVERAGE|
|TTD's Quality Rating of Stock - SJM - AVERAGE|
|TTD's Quality Rating of Stock - WDFC - AVERAGE|
|TTD's Quality Rating of Stock - MSI - 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Good list of breakdown stocks even as stock market rallies. Bears be selective. Stock market remains in near-term up trend.
TM, based in Japan, is one of the largest makers of cars and trucks. Annual revenues: $253 billion. TM's stock falls sharply Friday. The move undercuts key technical support. So far today, TM is trading 531,758 shares. Its average daily volume is 389,000 shares.
TM's stock fell sharply in the morning on the poor sales report.
The stock hit an intraday low of 103.01. It then lifted just slightly and trended sideways the rest of the day unable to sustain a comeback.
TM's tape action shows the recent block trades.
One can see the price for the blocks falling from $106.39 in the prior session to as low as $103.05 Friday.
A key bearish trade came in the morning when a block of 36,697 shares crossed the tape at 103.59.
That was down sharply from the prior block trade at 106.39 on 4,000 shares.
TM makes the Camray, Avalon, Corolla, Yaris, Vitz, Aygo, Corolla Axio/Fielder, Porte, Spade, Auris, Etios, Vios, and AGYA cars. It also makes trucks and hybrid vehicles.
TM's earnings for the upcoming fiscal fourth quarter ending in March is expected to rise 6% to $2.52 a share from $2.38 a year ago. That should bring net for the fiscal year to $13.01 a share, up 13% from the $11.52 the year before.
However, going out to fiscal 2017, the Street is forecasting a just a 5% increase in net to $13.64 a share from the anticipated $13.01 for fiscal 2016. Most importantly, net for the fiscal first quarter ending in June is expected to fall 22% to $2.63 a share from $3.37 a year before.
TM's daily chart shows the stock declining from 125 in December to 105 by February. The stock then trended sideways and now on Friday cuts below near-term support.
Strategy Opinion: TTD is targeting TM for a decline to 90 within the next few months, or sooner. A protective stop buy can be placed near 108.
|TTD's Quality Rating of Stock - TM - 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: Beverly 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.)