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.
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)
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 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 - 8
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large but very selective. Tobacco stocks breaking out. Stock market remains in trading range. Earnings still coming. Bulls remain alert.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - WLK - AVERAGE
WLK, based in Houston, makes chemicals, vinyls, polymers and frabricated products. Annual revenues: $3.8 billion. WLK's stock breaks out today from a nine-week flat base. The move higher was aided by news the company will spin off a unit that makes ethylene. So far today, WLK is trading 3 million shares, six times its average daily volume of 551,000 shares.
WLK's stock rose steadily in the morning and cut across its breakpoint line. The stock hit an intraday peak of 73.38.
Late in the morning, the stock drifted back and into the early afternoon, it touched its breakpoint line.
However, in the final hour, WLK was able to finish above its breakpoint.
WLK's tape action shows the recent block trades.
One can see the price for the blocks climbing from $64.25 in the prior session to as high as $72.50 on Tuesday.
A key bullish trade came near the opening. That is when a block of 19,707 shares crossed the tape 68.10.
That was up from the prior block at $64.25 on 20,000 shares.
The tape showed aggressive institutional buying.
WLK makes basic chemicals, vinyls, polymers and fabricated products.
The products are used in flexible and rigid packaging, automotive products, coatings, residential and commercial construction as well as other durable and non-durable goods.
The Company operates in two principal business segments, Olefins and Vinyls, and it is one of the few North American integrated producers of vinyls with downstream integration into polyvinyl chloride, or PVC, fabricated products.
Olefins are the basic building blocks used to create a wide variety of petrochemical products.
The Company manufactures ethylene, polyethylene, styrene, and associated co-products at its manufacturing facility in Lake Charles and polyethylene at its Longview, Texas facility.
It has two ethylene plants, two polyethylene plants and one styrene monomer plant at its Lake Charles complex. It has three polyethylene plants and a specialty polyethylene wax plant at its Longview facility.
WLK's 12-month performance chart shows the stock appreciating 65% versus an 18% gain for the S&P 500 index.
WLK's long-term chart shows the stock coming public back in 2004 and trading around $8. The stock fell back to $4.87 by early 2009 due to the bear market.
Since then, though, the stock has been driving higher having soared to $70 - a tremendous move. The stock remains in a strong up trend.
WLK's daily chart shows the stock advancing from 51 back in September to 69 by March.
The stock then put down a flat base. Today's breakout comes with a big gap move and strong volume. Of course, the move was linked to the spinoff news.
However, the technicals are very bullish.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags a bit.
WLK is poised to show strong profits for the next two quarters.
Analysts are forecasting a 23% jump in profits for the first quarter to $1.13 a share from 92 cents a year ago.
The highest estimate on the Street is at $1.20 a share. TTD sees chances for an upside earnings surprise. The company topped the consensus estimate in the prior quarter by 14%.
Going out to the second quarter, analysts expect a 24% gain in profits to $1.35 a share from $1.09 the year before.
Overall, earnings for the year should rise 13% to $5.13 a share from $4.55 a year ago.
The stock sells with a price-earnings ratio of 14. TTD sees that as reasonable.
Strategy Opinion: TTD is targeting WLK for a move to 85 off this breakout. A protective stop can be placed near 65 giving it some room.
TTD rates WLK an average intermediate-term play.
Sponsorship: Average. A key fund buyer recently was 4-star rated American Century Heritage Fund which purchased 68,100 shares. The fund holds a 0.45% stake.
The largest fund holder is the Royce Premier Investment Fund which holds a 1.6% stake. The 3-star rated fund was a recent seller of 760,000 shares.
Insider Activity: Bearish. Insiders were heavy sellers recently around $65. They have been getting stock options around $15 to $33.
Currently, 9 analysts follow the stock, 4 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Westlake Chemical Corp. - (WLK)
|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 - ORB - AVERAGE|
|TTD's Quality Rating of Stock - KAMN - AVERAGE|
|TTD's Quality Rating of Stock - LO - AVERAGE|
|TTD's Quality Rating of Stock - WNR - 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts. Bears remain conservative. Stock market continues to be locked in a trading range. TTD's short from Monday was Haemonetics Corp. (HAE) at 31.01. Today, the stock has declined to 30.64 and is working well for bears.
WAT, based in Milford, Ma., makes analytical instruments. Annual revenues: $1.9 billion. WAT's stock falls sharply today after reporting disappointing earnings. So far today, volume is running at a heavy 2.4 million shares, almost five times its normal pace. TTD sees more on the downside.
TTD highlighted WAT as a short at our midsession video show on the Web Tuesday.
The company reported earnings for the first quarter declined to 92 cents a share from $1.07 a year ago.
The Street was expecting net to rise to $1.11 a share. So, results disappointed.
The stock gapped lower in the morning sinking to 100. It then lifted and trended sideways.
Later in the afternoon, a second wave of selling hit pushing the stock down to an intraday low of 98.90.
WAT's tape action shows the recent block trades. One can see the price for the blocks falling from $108.24 to as low as $100.
A key bearish trade came in the morning when a block of 9,878 shares crossed the tape at $103.91. That was down sharply from the prior block trade at $107.83.
WAT operates in the analytical instrument industry, with manufacturing and distribution expertise in three technologies: high performance liquid chromatography instruments, chromatography columns and other consumables.
It also makes mass spectrometry instruments that can be integrated and used along with other analytical instruments. In addition, it produces thermal analysis and rheology instruments.
This year, analysts have been forecasting an 8% increase in WAT's earnings to $5.46 a share from $5.04 a year before. That forecast may come down.
WAT's daily chart shows the gap drop and the big expansion in volume. The tape action indicates heavy institutional selling pressure. The stock's TTD momentum indicator (top of chart) is now bearish.
Strategy Opinion: TTD is targeting WAT for a decline to 85. A protective stop buy can be placed near 105.
|TTD's Quality Rating of Stock - WAT - 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.)