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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.
Wednesday - April 22, 2020
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts - 7
Quality of Breakouts - Average.
Stocks Screened - 12,234
Bull side - Gold stocks dominate breakout list. Also some special restaurant type stocks moving higher.
Stock market - Daily market averages remain bullish. Weekly and monthly still bearish, except for the monthly Nasdaq.
Comment - Stock market whipsawing. The flow of earnings will be very important now and also the government decision at the end of the month on the virus outlook.
See Latest Earnings Reports - A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats - NTGR, Lad, SNBR, AXTI, AKZOY and DGX.
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 - Bullish |
S&P 500 - Bullish |
S&P 500 - Bearish |
S&P 500 - Bearish |
TTD's Quality Rating of Stock - BTG - ABOVE AVERAGE |
BTG, based in Vancouver, produces gold from four operating mines and one under construction. Annual revenues: $1.2 billion. BTG drives sharply higher Wednesday and breaks out from its 10-week, cup-and-handle base.
So far today, BTG is trading 10 million shares. Its average daily volume is 10.2 million shares.
Gold stocks are strong. TTD sees good potential for more on the upside for BTG.
BTG's stock moved higher in the morning and cut through its breakpoint line.
The stock reached a peak at $5.06 in the late afternoon. It closed near its high for the day. That is bullish.
In after-hours trading the stock was up 4 cents.
Tape Action
BTG's tape action shows the recent block trades.
One can see the price for the blocks climbing from $4.57 in the prior session to as high as $5.03 Wednesday.
A key bullish trade came in the morning when a block of 58,758 shares (duplicated) crossed the tape at $4.78.
That was up from the prior block at $4.57 on 58,148 shares.
In after hours trading a massive block of 129,843 shares crossed at $5.01. That came on a sequence started by an up tick from $5 a share.
Business
BTG has four operating mines and one mine under construction.
The company has a portfolio of other exploration projects in Mali, Colombia, Burkina Faso, Finland and Chile.
Its material mineral properties consist of three mines and one mine under construction: Otjikoto mine, an open pit gold mine in Windhoek, the capital of Namibia.
It has an Otjikoto mine, Masbate mine, an open pit gold mine, located near the northern tip of the island of Masbate. It also has an open pit gold mine under construction near Kenieba, Mali.
Charts
BTG's 12-month performance chart shows the stock up 77% versus a 4% decline in the stock market.
Insider activity was not available.
BTG's long-term chart shows the stock trading at a peak of $4.58 in 2012. The stock then went into a down trend touching a low of 74 cents in early 2016.
However, since then BTG has been working higher. The close at a new all-time high is bullish.
BTG's daily chart shows the stock in a cup-and-handle base.
The breakout comes with a gap move and modest pick up in volume.
The stock's CCI momentum indicator remains bullish.
Earnings Outlook
This year, analysts are forecasting a 214% surge in net to 44 cents a share from 14 cents the prior year.
Quarterly earnings growth will be strong.
Net for the first quarter should soar 175% to 11 cents a share from the 4 cents the prior year.
The highest estimate on the Street is at 14 cents a share. The company tends to meet or top Street estimates.
For the second quarter, net is projected to jump 100% to 10 cents a share from the 5 cents the previous year.
Strategy Opinion: TTD is targeting BTG for a move to $7 within the next few months, or sooner.
A protective stop can be placed near $4.30.
Intermediate-Term Rating: Average.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Breakout Success |
Bullish |
BTG scored good gains off recent breakouts. |
Response to Net |
Bullish |
BTG rose 9 times after 14 earnings reports. |
Seasonal Success |
Bullish |
BTG avg. gain 18% in April, loss 6% in May prior years. |
Earnings Beats |
Bearish |
BTG beat Street net estimate 6 times after 17 reports. |
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 |
24% |
1/10/2020 | 3.85 | 4.79 | 2/24/2020 |
18% |
8/5/2019 | 3.29 | 3.87 | 8/7/2019 |
12% |
12/21/2017 | 2.89 | 3.24 | 1/24/2018 |
53% |
3/15/2016 | 1.46 | 2.24 | 5/17/2016 |
(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
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - DPZ - AVERAGE |
TTD's Quality Rating of Stock - AU - AVERAGE |
TTD's Quality Rating of Stock - SLP - AVERAGE |
TTD's Quality Rating of Stock - AGI - 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 - 4
Stocks Screened - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts Wednesday. Bears be conservative.
HXL, based in Stamford, Ct. makes materials used in the airplane and space industries. Annual revenues: $2.4 billion. HXL's stock decline Wednesday and undercuts key support.
So far today, HXL is trading 1.7 million shares. Its average daily volume is 2 million shares.
TTD sees more on the downside. The stock has been in a sharp down trend.
A few sessions ago HXL said it will suspend dividends. It also came in with earnings for the first quarter of 64 cents a share. That was below the 71 cents projected by the Street.
Due to the virus, the company said it was suspending earnings projections.
HXL's stock rose in the morning to an intraday high of 29.52.
However, the stock then turned lower and undercut key support. It fell to an intraday low of $27.31 around noon.
It rebound back to $28.50 in the afternoon, but then faded again.
Tape Action
HXL's tape action shows the recent block trades.
One can see the price for the blocks falling from $29.33 down to $27.50 by the close.
A key bearish trade came in the morning when a block of 5,100 shares crossed the tape at $29.24
That was down from the prior block at $29.33 on 9,291 shares.
Business
HXL makes lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials and adhesives.
They are used for the commercial Aerospace, space and defense markets. It operates in two areas: Composite materials and engineered products.
Its products are used for commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.
Earnings:
This year, analysts are forecasting a 51% drop in net to $1.74 a share from the $3.54 the prior year.
Net for the second quarter should nosedive 83% to 16 cents a share from the 94 cents the previous year.
Charts:
HXL's daily chart shows the stock trading around $70 earlier this year. The stock broke down with the stock market touching around $30.
It has now cut below key technical support. It is vulnerable to more on the downside.
Strategy Opinion: TTD is targeting HXL for a decline to $22.50. A protective stop buy can be placed near $29.
Suitability: Aggressive Bears.
TTD's Stock Probability research of Prior Performance:
Response to Net |
Bullish |
HXL rose 7 times after 10 earnings reports. |
Seasonal Success |
Bearish |
HXL loss 4.5% in April, rose 1.5% in May in prior years. |
Earnings Beats |
Bullish |
HXL beat Street estimate 13 times after 20 reports. |
TTD's Quality Rating of Stock - HXL - 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.
Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.
TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.
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.)