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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 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 - 24
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list remains large. Stock market closed very little changed. Bulls be more conservative and selective. Market may need a rest after strong rebound from recent lows. Upside momentum seems to be slowing significantly.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011 - Updated April 4)
TTD's Quality Rating of Stock - MA - AVERAGE
MA, based in Purchase, N.Y., provides payment solutions with its variety of credit cards. Annual revenues: $5.5 billion. MA's stock breaks out from an 8-week flat base today and hits a 52-week high. The stock is trading 1.4 million shares. Its average daily volume is 910,000 shares. The company has a good track record of showing steady earnings growth.
TTD highlighted MA as a breakout at our midsession video show on the Web Tuesday.
MA's 10-minute chart shows the stock breaking out in the morning with good intraday volume. The stock peaked in the morning and then drifted back a bit.
It held nicely over the breakpoint, though.
MA's tape action shows the recent big block trades. One can see a key bullish block trade took place in the morning.
That is when 7,200 shares crossed the tape at $259.48. That was up from the prior block trade at $253.55 shares. That up tick trade was followed by a big block of 54,642 shares crossing at $261.25. That had a value of $14.3 million.
MA services financial institutions, businesses, cardholders and merchants worldwide.
It develops and markets payment solutions and provides industry analysis and consulting services to financial institution customers and merchants.
Its family of brands include MasterCard, Maestro and Cirrus.
MA's six-month performance chart shows the stock appreciating 19% versus a 15% gain for the S&P 500 index.
MA's long-term chart shows the stock coming public in 2006 and trading around 50. The stock climbed to a peak of 320 in 2008. It fell sharply in the bear market hitting a low of 113. It has since been working higher. The breakout today is significant in that MA is trying to clear intermediate upside resistance.
MA's daily chart shows the stock breaking out with a modest increase in volume.
The stock has made a major comeback from its selloff in December.
The stock's TTD momentum indicator top of chart is solidly bullish.
The accumulation - distribution line (bottom of chart) is in a slight downtrend. So, it lags the price of the stock. So, one needs to be very watchful of the stock.
This year, analysts forecast a 19% gain in MA's earnings to $16.69 a share from $14.05 a year ago. The stock sells with a price-earnings ratio of 15. That is low given the growth rate.
Going out to 2012, the Street projects a 17% improvement in net to $19.54 a share.
The company is benefiting from the growing population and improving economy.
Net for the upcoming first quarter is expected to rise 18% to $4.07 a share from $3.46 a year ago. The highest estimate on the Street is at $4.30 a share. TTD sees very good chances for an upside surprise. The company has topped the consensus estimate for the past four quarter by as much as 40 cents a share to as low as 11 cents a share.
Strategy Opinion: MA is a solid big cap play with good upside potential now. TTD is targeting MA for a move to 300 within the next six months. A protective stop can be placed near 250. TTD rates MA a good intermediate-term play in the big cap sector.
Sponsorship: Above Average. The largest fund holder is VA CollegeAmerican Investment Co 529A with a 0.99% stake. It was a recent buyer of 1.3 million shares. A key buyer recently was 5-star rated Oakmark Equity & Income Fund which purchased 400,000 shares. MA has 123.7 million shares.
Insider Activity: Neutral. Not much activity lately. Currently, 30 analysts follow the stock, 26 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Mastercard Inc. - (MA)
|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 - WLT - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - AZO - AVERAGE|
|TTD's Quality Rating of Stock -EXK - AVERAGE|
|TTD's Quality Rating of Stock - ACTG - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today. Bears remain patient and watchful. Stock market stretched to the upside near-term. It is liable to fall back.
TM, based in Japan, makes cars and trucks. Annual revenues: $208.5 billion. TM's stock gaps lower today in heavier trading. The company said it may have to close its USA plans due to a lack of parts. The company has been impacted by the quake in Japan. So far today, TM is trading 1.7 million shares. Its average daily volume is 1.5 million shares.
Today, TM said it probably will temporarily close its North American plants. The company has been impacted by the quake in Japan and related problems.
TM's stock gapped lower in the morning. It hit an intraday low of 77.22 in the morning. It then lifted slightly in the afternoon, but now appears to be fading heading into the close.
TM's tape action so far today is bearish. The clip of the recent block trades shows the price declining from $80.55 to $77.40.
A key bearish trade came when this morning a block of 88,102 shares crossed the tape at $77.40. That was down sharply from the prior block trade at $79.48.
TM sells, leases, and repairs passenger cars, trucks, buses, boats, airplanes and other products in Japan and most foreign countries. The company is also involved in real estate, civil engineering, insurance.
Last fiscal year ending March of 2010, TM earned $1.46 a share. Analysts have no estimate for this fiscal year. No doubt they have lowered any internally kept forecasts.
TM's daily chart shows the stock breaking down from a head-and-shoulder topping pattern. That is bearish. The stock's accumulation - distribution line is still bullish, but could be vulnerable.
Strategy Opinion: TTD is targeting TM for a trip down to 68 within the next few months, or sooner. A protective stop buy can be placed near 81.
|TTD's Quality Rating of Stock - TM - 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.)