Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, May 8, 2017 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 1, 2017 |
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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 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: 1-480-926-1680.
Monday - May 8, 2017
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts so far today - 12
Quality of Breakouts - Average
Stocks Screened - 12,234
Bull side - Selective list of breakouts with some bank stocks topping the list. Bulls can be venturesome.
Stock market - Major averages continue to hold bullish in all time zones.
Stock Market Momentum
(Based on 14 unit moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bullish |
Dow - Bullish |
Dow - Bullish, |
Nasdaq - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
Ticker Tape Digest's
TTD's Quality Rating of Stock - WB - ABOVE AVERAGE |
WB, based in China, is a social media platform for people to create, distribute and discover Chinese-language content. Annual revenues: $656 million. It was started in 2010. WB's stock rises sharply Tuesday to breakout from a 12-week, cup-and-handle base.
TTD highlighted WB as a breakout at our midsession video show on the Web Monday.
So far today, WB is trading 4 million shares, triple its average daily volume of 1.3 million shares.
WB's stock drove sharply higher in the morning and cleared its breakpoint
The stock reached an intraday peak at $60 in the morning.
It then trended sideways the rest of the day.
Tape Action
WB's tape action shows the recent block trades.
One can see the price for the blocks climbing from $56.67 in the prior session to as high as $60 Monday.
A key block trade came in the morning when a block of 27,024 shares (duplicated) crossed the tape at $57.24.
That was up sharply from the prior block late on Friday at $56.67 on 100,000 shares.
Late in the session a block of 107,387 shares (duplicated) crossed the tape at $59.33.
That came on a down tick from the prior trade in the sequence at $59.34 on 500 shares.
The tape would indicate some institutional profit taking.
Business
WB operates an Internet services. It provides ways for people and firms to contact people in real time, interact with others on a global platform and stay connected with the world.
It operates in two segments: advertising and marketing services and other services.
WBt offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming.
Charts
WB's 12-month performance chart shows the stock appreciating a sensational 180% versus a 17% gain for the stock market.
WB's long-term chart shows the stock coming public in 2015 at $16.27. The stock trended mostly sideways through 2014 and 2015.
Then in early 2016, WB broke out from its long-term based and rose steadily reaching a peak of $58.79 earlier this year. The stock based and now breaks out to a new all-time high. That is very bullish.
WB's daily chart shows the stock climbing from $40 in late December to a peak near $57 by February.
The stock then pulled back and formed its base.
WB advanced to the top of its base and spent a few days there.
Now, it breaks out with a nice widening of the day spread.
WB's CCI momentum indicator (bottom of chart) is strongly bullish.
Earnings
Analysts expect WB to report a 241% surge in 2016 net to 55 cents a share from 16 cents a year ago.
Profits for the fourth quarter of 2016 should leap 178% to 25 cents a share from 9 cents a year before.
The highest estimate is at 26 cents a share. The company missed in the prior quarter by 4 cents a share. It came in with 14 cents a share while the Street was looking for 18 cents. So, one needs to be watchful
Looking out to 2017, the Street is forecasting a 123% jump in net to $1.22 a share from the anticipated 55 cents for 2016.
The stock has a price-earnings ratio of 41. TTD sees that as attractive for aggressive value-growth investors.
Strategy Opinion: TTD is targeting the stock for a move to $72 off this breakout. A protective stop can be placed near 54.
TTD rates WB a good intermediate-term play provided earnings meet expectations.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success - Well above Average - WB has racked up some sensational gains off its prior breakouts.
Probability - Earnings Response - Above Average - WB has moved higher four out of the past six earnings reports where there was a significant change.
Probability: Seasonal Success - Well above Average - WB has posed a gain of 1.1% in prior months of May. It has racked up an average gain of 8.5% in June. That is impressive.
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 |
7% |
10/4/2016 | 52.15 | 55.85 | 10/10/2016 |
62% |
8/5/2016 | 34.37 | 55.85 | 10/10/2016 |
88% |
7/7/2016 | 29.65 | 55.85 | 10/10/2016 |
127% |
5/27/2016 |
24.55 |
55.85 |
10/10/2016 |
175% |
4/6/2016 | 20.32 | 55.85 |
10/10/2016 |
10% |
11/25/2015 | 18.51 | 20.41 | 12/23/2015 |
(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 Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Stock's Monthly Seasonal Performance Chart - Past 5 Years
Showing % Months UP and % Change
TTD's Breakout Profile Rating Weibo Corp. - (WB) |
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 - SBBX - ABOVE AVERAGE |
TTD's Quality Rating of Stock - LOB - ABOVE AVERAGE |
TTD's Quality Rating of Stock - FLOW - ABOVE AVERAGE |
TTD's Quality Rating of Stock - BA - 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 - 5
Stocks Screened - 12,234
Long-Term Environment for bears: Unfavorable
Bear Side - Small list of shorts. Bears be conservative.
TTD's short Friday was National Cinemedia Inc. (NCMI) at $8.66. Monday NCMI declines to $8.43 and is working well for bears.
HZNP, based in Dublin, Ireland, sells drugs to treat arthritis and inflammation and orphan diseases. Annual revenues: $981 million. HZNP's stock falls sharply Monday after reporting disappoint earnings. TTD sees more on the downside.
TTD highlighted HZNP as a short at our midsession video show on the Web Monday.
So far today HZNP is trading a heavy 37.4 million shares, 17 times its average daily volume of 2.2 million shares.
HZNP came in with net of 21 cents a share for the first quarter. That was below the Street consensus estimate of 23 cents a share.
The company also forecast disappoint sales.
HZNP's stock fell sharply in the morning and touched an intraday low of $10.02.
The stock then trended sideways the rest of the day unable to rally.
Tape Action
HZNP's tape action shows the recent block trades.
One can see the price for the blocks tumbling from $15.21 in the prior session to as low as $10.07.
A key bearish trade came in the morning when a block of 182,785 shares (duplicated) crossed the tape at $11.14.
That was down from the prior block at $15.21 on 152,500 shares late in the prior session.
Near the close selling pressure persisted. A block of 183,475 shares (duplicated) crossed at $10.12.
That was down from the prior block at $10.15 on 121,100 shares.
Business
HZNP sells a portfolio of products for arthritis, inflammation and orphan diseases.
The company's U.S. marketed products are ACTIMMUNE, DUEXIS, PENNSAID, RAYOS delayed-release tablets and VIMOVO.
Earnings:
Analysts were forecasting a 33% increase in net this year to $2.15 a share from $1.62 a year ago. However, HZNP cuts its forecast of sales. So, earnings projects should come down.
Net for the second quarter has been forecast at a 17% gain to 49 cents a share, up from 42 cents the year before.
Charts:
HZNP's daily chart shows the stock gapping sharply lower with heavy volume. The stock's CCI momentum indicator is extremely bearish.
HZNP's 12-month performance chart shows the stock falling 30% versus a gain of 18% for the stock market.
Insiders were buys in recent months around $2.40 a share using stock options. They were sellers in February at $16 a share.
Strategy Opinion: TTD is targeting HZNP for a decline to 8 within the next few months, or sooner. A protective stop buy can be placed near 11.20.
Suitability: Aggressive Bulls.
TTD's special probability research of stock's Prior Performance:
Probability - Earnings Response - Average. HZNP rose 4 times after the past 7 earnings reports where there was a significant change.
Probability: Seasonal Activity -- Average. HZNP has averaged a decline of 1.6% in May. It has been up 4.5% on average for June.
TTD's Quality Rating of Stock - HZNP - BELOW AVERAGE |
Stock 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 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.)