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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 Accumulation 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 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: 1-480-878-8381 or 480-704-3331.
Tuesday - April 7, 2020
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts - None
Quality of Breakouts - None
Stocks Screened - 12,234
Bull side - No Breakouts Tuesday as stock market rally fades in the afternoon.
Stock market - Major averages remain bullish daily. However, weekly and Monthly remain bearish.
Comment - Stock market has rallied off the low. The key will be an effective follow through. One needs to be watchful.
See Latest Earnings Reports - A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats - ANGO, GBX, LEVI, and LNN.
Stock Market Momentum
(Daily is based on a moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bullish |
Dow - Bearish |
Dow - Bearish |
Nasdaq - Bullish |
Nasdaq - Bearish |
Nasdaq - Bearish |
S&P 500 - Bullish |
S&P 500 - Bearish |
S&P 500 - Bearish |
None
TTD's Quality Rating of Stock - ZYXI - ABOVE AVERAGE |
ZYXI, based in Lone Tree, Co., makes medical devices to treat pain. Annual revenues: $45.5 million ZYXI's stock moves higher Tuesday with expanding volume. The stock is in position to potentially breakout.
There were no breakout stocks Tuesday. So, TTD highlights a stock near a breakout.
So far today, ZYXI is trading 570,000 shares, almost double its average daily volume of 305,000 shares.
TTD suggests accumulation in anticipation of a breakout.
ZYXI's stock spiked higher in the morning and reached an intraday high of $12.75.
The company raised its revenue outlook for the year. That helped spark the advance.
ZYXI's stock pulled back slightly and trended sideways close $12.
Tape Action
ZYX's tape action shows the recent block trades.
One can see the price for the blocks climbing from $11.19 in the prior session to as high as $12.25 in the morning.
A key bullish trade came in the morning when a block of 8,613 shares crossed the tape at $11.50.
That was up from the prior block the day before at $11.19 on 12,764 shares.
Near the close Tuesday a block of 14,975 shares crossed at $11.93.
That block came on an up tick from the prior trade at $11.87 on 100 shares.
Business
ZYXI makes and sells medical devices to treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation.
The company is developing its blood volume monitoring product for non-invasive cardiac monitoring.
The firm intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals.
Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries.
Charts
ZYXI's 12-month performance chart shows the stock up 150% versus an 8% decline in the stock market.
Insiders were buyers using stock options at 40 cents a share to 14 cents.
They were recent sellers at $8.30 to $14.25 a share.
ZYXI's long-term chart shows the stock climbing from 27 cents a share in 2017 to a peak at $15.27 recently. The stock is in a strong long-term up trend.
ZYXI's daily chart shows the stock climbing from $8 back in December to $11.
The stock then had a breakout in February and ran up to $15.
It was dragged back recently due to the market sell off.
It has bottomed and now is starting to come on again. It ha a good chance of working higher and breaking out.
The stock's CCI momentum indicator is very bullish.
Earnings Outlook
This year, analysts are forecasting a 25% jump in net to 35 cents a share from 28 cents the prior year.
The stock sells with a price-earnings ratio of 34. TTD sees that as reasonable.
Looking out to 2021, the Street predicts a 68% leap in net to 59 cents a share from the anticipated 35 cents this year.
For the first quarter, analysts expect a 14% decline in net to 6 cents a share from the 7 cents the prior year.
Then in the second quarter profits should rise 17% to 7 cents a share from the 6 cents the previous year.
The company tends to come in close to Street estimates. Four analysts track the stock.
Strategy Opinion: TTD suggests accumulation of a partial sake in ZYXI with further buying to be done on a breakout over 14.25 TTD is targeting ZYXI for a move to $19 within the next few months, or sooner after a breakout.
A protective stop can be placed near $13 after a breakout.
Intermediate-Term Rating: Average.
Suitability: Very Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Breakout Success |
Bullish |
ZYXI scored big gains off recent breakouts. |
Response to Net |
Bullish |
ZYXI rose 6 times after 8 earnings reports. |
Seasonal Success |
Bullish |
ZYXI avg. gain 6% in April, 11% in May in prior years. |
Earnings Beats |
Bullish |
ZYXI beat Street net estimate one times after 1 report. |
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
28% |
2/21/2020 | 11.28 | 14.40 | 3/4/2020 |
99% |
4/30/2019 | 5.90 | 11.73 | 6/24/2019 |
48% |
2/7/2019 | 3.76 | 5.57 | 2/25/2019 |
(In actual trading, entry and exit points could vary depending on broker execution.
Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)
Stock's Long-term Chart
Stock's Price Performance after Reporting Earnings
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
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 - 1
Stocks Screened - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Only one short Tuesday as stock market is now in a near-term up trend after falling sharply.
GLNG, based in Hamilton, Bermuda, provides transportation of liquefied natural gas. Annual revenues: $449 million. GLNG's stock falls sharply Tuesday and undercuts support.
So far today, GLNG is trading 6.1 million shares, triple its average daily volume of 2 million shares.
TTD sees more on the downside.
GLNG's stock cut below key support in the morning. The stock touched an intraday low of $4.54 in the afternoon.
The stock lifted slightly in the final hour.
Tape Action
GLNG's tape action shows the recent block trades.
One can see the price for the blocks falling from $6.10 in the prior session to as low as $4.45 Tuesday afternoon.
A key bearish trade came in the morning when a block of 13,466 shares crossed the tape at $5.53.
That was down sharply from the prior block at $6.10 on 17,102 shares.
Business
GLNG operates LNG carriers and floating storage regasification units.
The company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG.
The company, along with its affiliate, Golar LNG Partners LP, has 30 vessels.
Earnings:
This year, analysts have been forecasting a profit of 31 cents a share. There were no year ago figures available.
For the upcoming first quarter, the Street expects a profit of one cent a share compared with a loss of 37 cents the prior year.
Charts:
GLNG's daily chart shows the stock trending lower down to $5.70. The stock tried to hold, but fails and falls sharply with a big pick up in volume. That is bearish.
GLNG's 12-month performance chart shows the stock down 75% versus an 8% decline for the stock market.
Strategy Opinion: TTD is targeting GLNG for a decline to $3.50 within the next few months, or sooner. A protective stop buy can be placed near $4.90
Suitability: Aggressive Bears.
TTD's Stock Probability research of Prior Performance:
Response to Net |
Bearish |
GLNG rose 5 times after 14 earnings reports. |
Seasonal Success |
Bearish |
GLNG fell 9.5% in April, fell 7.5% in May in prior years. |
Earnings Beats |
Bearish |
GLNG beat Street estimate 3 times after 10 reports. |
TTD's Quality Rating of Stock - GLNG - BELOW AVERAGE |
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been a speaker at the Money Show 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 1-480-878-8381.
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TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays. There are other features too such as Quick Trades and Long-term Plays.
TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.
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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.)