Ticker Tape Digest

Tuesday - May 8, 2018

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.

   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.

Tuesday - May 8, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  20

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some good looking plays. Aggressive Bulls can be venturesome.

Stock market  -  Major averages bullish on daily. The weekly averages are mixed. Stock market is locked in a trading range.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday

(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

Adobe System Inc. (ADBE) - 234.56, up 3.57 - Breakpoint 231.41

Net To Surge 48% This Year, TTD Targets 285 

   ADBE, based in San Jose, Ca., provides imaging software for the web and print. Annual revenues: $7.3 billion. ADBE's stock, a leader, moves higher Tuesday and breaks out from its nine-week flat base. The stock is a leader. The move carries the stock to a new all-time high.

  So far today, ADBE is trading 2.2 million shares. Its average daily volume is 2.3 million shares.

 ADBE's stock declined slightly in the morning. However, it turned and rallied steadily crossing its breakpoint line in the morning.

  The stock finished near its high for the day with good intraday volume.

 Tape Action

  ADBE's tape action shows the recent block trades.

 One can see the price for the blocks climbing from $229.74 in the morning to as high as $234.56 in the afternoon.

  A key bullish trade came late on Monday when a block of 106,876 shares (duplicated) crossed the tape at $230.99.

  That was up from the prior block trade at $230.48 on 11,112 shares.

 Near the close Tuesday a block of 196,738 shares (duplicated) crossed at $234.56. That was up from the prior block at $234.01 on 46,300 shares.

 Business

  ADBE provides graphic design, publishing, and imaging software for Web and print.

  It offers a line of application software products for producing, distributing, and managing information.

  The company license its industry-standard technologies to major hardware manufacturers, software developers, and service providers.

  Charts

   ADBE's 12-month performance chart shows the stock appreciating 73% versus a 16% gain for the S&P 500 index.

  There was steady insider selling this year. The latest was in the past two months at $184 to $231.

  Some insiders were buyers earlier this year at $33 to $34 using stock options.

  ADBE reached a peak of $48 in 2007, the top in the prior bull market. The stock then fell back to $15.70 by early 2009 due to the following bear market.

  ADBE then trend in a trading range until 2013. It broke out and has since trended steadily higher.

  The stock came public back in 1986. It has gone through six 2-for-1 stock splits. ADBE push to a new all-time high is bullish..

  ADBE's daily chart shows the stock climbing from  $165.75 in December to a peak near $230 by March.

 The stock then pulled back and formed a base. It broke out in April, but faded back.

  It resumed its basing work and Tuesday finally broke out.

 The CCI momentum indicator is strongly bullish.

   Earnings Outlook

   Analysts expect net for the fiscal year ending in November of 2018 to surge 48% to $6.39 a share from  $4.31 a year ago.

   Analysts have been raising their estimates.

  The stock has a price-earnings ratio of 36. That is high. So, the stock is best for an aggressive bull.

  Looking ahead to fiscal 2019 ending in November, the Street is forecasting a 13% increase in profits to $7.20 a share from  the anticipated $6.39 this fiscal year. That estimate could easily be raised.

   Earnings for the upcoming fiscal second quarter ending in May should surge 51% to $1.54 a share from  the $1.02 the year before.

   The highest estimate is at $1.60 a share. ADBE has topped the consensus estimate the past 16 quarters. That is impressive.

  Going out to the fiscal third quarter ending in August net should surge 45% to $1.59 a share from  the $1.10 the year before.   

Strategy Opinion: TTD is targeting ADBE for a move to $285.  A protective stop can be placed near $224.

 TTD rates ADBE a good intermediate-term play. The stock is a leader.

Suitability: Aggressive Bulls.

                                                TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Modestly Bullish.  ADBE scored just modest gains off its recent breakout. However, the stock remains in a long-term up trend.

Probability - Earnings Response - Extremely Bullish. ADBE has moved higher 8 times after its past 9 earnings reports when there was a significant move. That is impressive.

Probability:  Seasonal Success - Very Bullish. ADBE has risen an average of 5.2%  in May and a big 2.6%  in June. 

           Stock's Prior Performance After A Breakout

(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

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 - 15

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Large list of breakdown stocks with many issues hurt by disappointing results. Bears can be venturesome.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

MacroGenics Inc. (MGNX) - 20.18, down 2.32

Posts Quarterly Loss, TTD Sees Decline to 16

  MGNX, based in Rockwell, Md., is a biotech firm working on treatments for cancer. Annual revenues: $158 million. MGNX's stock falls sharply Tuesday after reporting a wider loss. TTD sees more on the downside.

  So far today, MGNX is trading 665,521 shares, more than double its average daily volume of 249,000 shares.

  MGNX reported a loss of $1.34 a share for the first quarter. That was much more than the Street estimate of a loss of $1.08 a share.

  MHNX's stock gapped lower in the morning and cut below key technical support.

 The stock touched an intraday low of $19.58 around noon. It the tried to rally but faded back and then lifted slightly in the final hour.

  Tape Action

  MHNX's tape action shows the recent block trades.

  One can see the price for the blocks falling from  $22.68 in the prior session to as low as $20.03 Tuesday afternoon.

  There was some bargain hunting near the close. That is when a block of 16,990 shares (duplicated) crossed the tape at $20.18.

  That was up from the prior trade in the sequence at $20.17 on 108 shares.

  Business

  MGRX is working on developing monoclonal antibody-based therapeutics to treat cancer and autoimmune disorders and infectious diseases.

 The company develops therapeutic product candidates using its antibody-based technology platforms and also in collaboration with other biotech firms.  It has a pipeline of product candidates in human clinical testing.

 Earnings:

  This year, analysts are forecasting a loss of $4.42 a share compared with a loss of 54 cents the year before.

  For the upcoming second quarter, the Street expects a loss of $1.18 a share compared with a loss of $1.14 the year before.   

Charts:   

  MGNX's daily chart shows the sock climbing to a peak of $32.74 in March. The stock has trended lower since then.

  MGNX's 12-month performance chart shows the stock up 9% versus a 12% gain for the stock market. However, its performance has weakened the past two months.   

Strategy Opinion: TTD is targeting MGNX for a decline to $16 within the next few months, or sooner. A protective stop buy can be placed near $21.50.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  MGNX rose just 3 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Bullish.  MGNX rose an average of 0.1% in May and 9.5% in June the past several years.

   Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   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. - 2018

    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 1-480-926-1680.

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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.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)