Daily - Go to TTD's Tape of Stock Charts - Monday, April 6, 2015 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 6, 2015 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
---|
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) |
---|
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.
Breakout Stocks
Total Buy Breakouts so far today - 17
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Stock market is in a trading range. Bulls be conservative.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EPAM - ABOVE AVERAGE |
EPAM, based in Newtown, Pa., provides software engineering solutions and technology services worldwide. Annual revenues: $730 million. EPAM's stock breaks out today from a seven-week flat base. The move carries the stock to a new high.
TTD highlighted EPAM as a breakout at our midsession video show on the Web Monday.
So far today, EPAM is trading a heavy 2 million shares, five times its average daily volume of 371,000 shares.
EPAM's stock drove sharply higher in the morning to cut through its breakpoint line.
The stock then trended higher peaking in the afternoon at $67.10.
The stock then backed off a bit late in the day.
EPAM's tape action shows the recent block trades.
One can see the price for the blocks climbing from $61.40 a few sessions ago to as high as $66.07 on Monday.
A key bullish trade came back on Thursday when a massive block of 587,037 shares crossed the tape at $61.75.
That was up from the prior block at $61.40.
Then, on Monday, a giant block of 901,674 shares crossed the tape at $62.60.
That was up sharply from the private block at $61.72 on 7,178 shares.
EPAM provides software product development services, including product research, customer experience design and prototyping.
The firm also handles program management, component design and integration, full lifecycle software testing, product deployment and end-user customization.
EPAM's 12-month performance chart shows the stock appreciating a sensational 120% versus an 18% gain for the S&P 500 index.
The stock has shown just light insider selling the past few months. (see red bars on chart)
EPAM's long-term chart shows the stock coming public back in 2012 at $13.75. The stock eventually climbed to a peak of 46 by early 2014.
It then pulled back to 30. However, since then EPAM has driven sharply higher doubling and making a new all-time high Monday.
EPAM's daily chart shows the stock advancing from 41 back in November to a peak near 52 by late February.
The stock then put down a tight flat base above its rising 50-day moving average line.
The base is "picture perfect."
The breakout move is too!
The stock shows a widening of the daily spread (range from high to low) and a big expansion in volume.
The stock's TTD momentum indicator (top of chart) has been bullish the past three months.
The accumulation - distribution line (bottom of chart) has pushed to a new high. That shows good underlying buying and is a plus for the breakout.
This year, analysts are forecasting a 21% increase in net to $2.05 a share from $1.70 a year ago.
The stock sells with a price-earnings ratio of 32.
Going out to 2016, analysts look for a 19% gain in profits to $2.45 a share from the anticipated $2.05 this year.
Net for the upcoming first quarter should rise 13% to 43 cents a share from 38 cents a year ago.
Most recently EPAM has had a tendency to top Street estimates.
Looking ahead to the second quarter net should climb 25% to 49 cents a share from 39 cents the year before.
Strategy Opinion: TTD is targeting EPAM for a move to 76 off this breakout. A protective stop can be placed near 62.
TTD rates EPAM an average intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was the 4-star rated Wells Fargo Advantage Discovery Fund which purchased 425,177 shares as a new position.
The largest fund holder is 4-star rated Oak Ridge Small Cap Growth Fund with a 2.8% stake. It has kept its position steady.
EPAM has 49 million shares outstanding. Institutions hold 90% of the stock and insiders 7%.
Insider Activity: Bearish. Insiders were recent buyers using stock options at $6.88 to $32. They were sellers around $60 recently.
Right now, 13 analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Epam Systems Inc. - (EPAM) |
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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - CHMT - ABOVE AVERAGE |
TTD's Quality Rating of Stock - IMAX - ABOVE AVERAGE |
TTD's Quality Rating of Stock - BIP - ABOVE AVERAGE |
TTD's Quality Rating of Stock - DLPH - 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakouts as stock market rises sharply. Bears be conservative.
ARCB, based in Fort Smith, Ark., provides trucking services. Annual revenues: $2.6 billion. ARCB's stock falls sharply today and undercuts key support. So far today, ARCB is trading 481,673 shares. Its average daily volume is 284,000 shares. TTD sees more on the downside.
TTD highlighted ARCB as a short at out midsession video show on the Web Monday.
ARCB's stock fell in the morning and continued lower into the afternoon. It then made an intraday low at $35.26.
The stock then trended sideways into the close.
ARCB's tape action shows the recent block trades.
One can see the price for the blocks falling from $38.11 in the prior session to as low as $35.66 on Monday.
A key bearish trade came Monday morning when a block of 22,000 shares crossed the tape at $36.25.
That was down from the prior block trade at $36.82 on 13,000 shares.
ARCB provides freight transportation for general commodities such as food, textiles, apparel, furniture, appliances, chemicals, petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts and machinery.
This year, analysts are forecasting a 42% jump in ARCB's earnings to $2.57 a share from $1.82 the year before.
Although earnings will rise, the stock is now breaking down. The daily chart shows ARCB cutting below key support. The TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting ARCB for a decline to 30. A protective stop buy can be placed near 36.70.
TTD's Quality Rating of Stock - ARCB - 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.)