Daily - Go to TTD's Tape of  Stock Charts - Tuesday, April 9, 2013

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Tuesday, April 9, 2013

Ticker Tape Digest

Tuesday - April 9, 2013

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.

 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 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 - 12

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side - Good number of breakout stocks. Bulls be selective. Stock market still holding in overall up trend. Earnings will have big impact as they are reported.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - April 9

(See Top Performing Breakout Stocks for 2011- 2012)

(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)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Corrections Corp of America (CXW) - 39.12, up 1.15 - Breakpoint 38.71

Net to Jump 34% This Year, TTD Targets 46

   CXW, based in Nashville, Ten., provides detention and corrections services to governmental agencies. Annual revenues: $1.8 billion. CXW's stock breaks out from a 13-week flat base. The move carries the stock to a 13-year high. Also, TTD spotted big institutional buying near the close. TTD highlighted CXW early this year as a potential breakout.

  The stock was also featured at our midsession video show on the Web Tuesday.

  So far today, CXW is trading a heavy 3.5 million shares, almost triple its normal daily volume of 1.3 million shares.

  CXW rose sharply in the morning to clear its breakpoint line (see 10-minute chart). The stock then pulled back, lifted late in the morning and then trended sideways the rest of the session.

  The company  said Monday it declared a special dividend of $675 million, or about $6.63 a share based on the number of shares currently outstanding.

 It made the move in connection with its previously announced plan to qualify as a real estate investment trust for federal income tax purposes effective January 1.

 The special dividend will be paid in satisfaction of requirements that the company distribute its previously undistributed accumulated earnings and profits attributable to tax periods ending prior to January 1.

 The company expects to pay the special dividend on May 20 to shareholders of record as of April 19.

  The stock's tape action recently is shows some strong institutional buying late in the day.

  There was a big block trade of 66,852 shares that crossed the tape at $39.03 late in the day. That was up over the prior block trade at $39.02.

The value of the block was at $2.6 million.

 CXW is one of the nation's largest providers of detention and corrections services.

The company's full range of services includes design, construction, ownership, renovation and management of new or existing jails and prisons.

 It also provides long distance inmate transportation services.

  CXW's 12-month performance chart shows the stock appreciating 36% versus a 15% gain for the S&P 500 index.

  CXW's long-term chart shows the stock climbing from 10 back in 2004 to a peak of 33 in 2007. The stock then fell back to 9 in early 2009 due to the bear market. However, since then the stock has staged a strong recovery a fourfold move. The push to a new multi-year high is bullish and could draw in more buying.

  CXW's daily chart shows the stock advancing from 32 back in October to around 39.

  Today, the stock breaks out with a gap move to the upside on an expansion in volume.

  The base is well structured showing a tightness and a contraction in volume.

  The stock's TTD momentum indicator (top of chart) is strongly bullish.

   The TTD momentum indicator (bottom of chart) took a hit in early March. It is now recovering and moving higher. That shows good recent buying.  

   This year, analysts are forecasting a 34% jump in earnings to $2.10 a share from the $1.57 a year ago. The stock sells with a price-earnings of just 18. That is well below the current annual growth rates.

   CXW is poised to show strong earnings in the first half.

   Analysts expect net for the first quarter to jump 43% to 47 cents a share from 33 cents a year ago. The highest estimate on the Street is at 48 cents a share. CXW has a consistent pattern of posting earnings about one to four cents a share above the Street estimates. So, TTD sees chances for a modest upside earnings surprise.

  Going out to the second quarter profits are projected to climb 40% to 53 cents a share from 38 cents the year before.

  Going out to 2014, the Street looks for only a 4% rise in net to $2.18 a share from the anticipated $2.10 in 2013.

  Strategy Opinion: TTD is targeting CXW for a move to 46 after a breakout. A protective stop can be placed near 36.50.

  TTD rates CXW more of a trading play due to a slow down in earnings growth next year.

  Sponsorship: Excellent. The largest fund holder is Merger Fund with a 2% stake. The 4-star rated fund was a recent buyer of 1.2 million shares. . Also, the 5-star rated Touchstone Small Cap Core Fund was a recent buyer of 34,650 shares.  

  CXW has 100.3 million shares outstanding. Institutions hold 83% of the stock.

  Insider Activity: Bearish. Insiders were recent buyers using stock options at $11.85 to $12.50 a share. They sold around 38. Currently, 5 analysts follow the stock, 4 have a buy, down from 5 three months ago.   

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 - 3

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Small list of short plays as stock market rallies broadly. Bears be selective as stock market still holds in up trend. TTD's short from Monday was Techne Corp. (TECH) at 65.59. So far today TECH is down 0.21 to 65.20 and working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Ecopetrol SA (EC) - 51.01, down 3.63

Profits to Fall in the first half, TTD Sees Side to 45

  EC, based in Colombia, produces petroleum products. Annual sales: $33.3 billion. EC, a big cap play, breaks down today setting off a TTD short play. The company is big. Thus, the short is a conservative play. So far today, EC is trading a heavy 997,372 shares, almost double its normal daily volume of 545,000 shares.

  EC's stock gapped lower in the morning. It then trended sideways unable to mount a rally. Late in the day, it started to weaken again.

  The stock's tape action shows the recent big block trades.

  One can see the price for the blocks declining from $54.90 to $50.97.

  A key bearish trade came in the morning when a block of 6,788 shares crossed the tape at $51.31. That was down sharply from the prior block at $54.39.

  EC seeks to develop the eastern Llanos Basin of Colombia, as well as other areas in Colombia and northern Peru seeking oil.

 The company's operation includes the extraction, collection, treatment, storage and pumping or compression of hydrocarbons.

 EC has four divisions to handle 163 production fields. Ecopetrol's production is concentrated in the upper, middle and lower Magdalena, the Eastern Plans and the Caribbean, and the provinces of Putumayo, Cesar and Norte de Santander.

  Analysts are forecasting an 8% drop in net for the first quarter and a 5% decline in the second quarter. However, overall for the year they expect net to rise 13% to $4.60 a share from $4.08 a year ago.

  EC's daily chart shows the stock gapping lower today with expanding volume. EC's accumulation - distribution line (bottom of chart) has been trending lower indicating clear selling pressure.

   Strategy Opinion:  TTD is targeting EC for a decline to 45. TTD sees the stock as a trading short. A protective stop buy can be placed near 52.80.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2013

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.)