Daily - Go to TTD's Chart scroller of Breakout Stocks - Friday - June 17, 2022 |
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 Swing - 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 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.
Friday - June 17, 2021
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakout Stocks - 0
Quality of Breakouts - None.
Stocks Screened - 6,500
Bull side - No breakout stocks. Stock market still in overall down trend.
Stock market - Major averages are bearish in all time sectors.
Comment - Bulls be conservative and patient looking for a rally-follow through sequence. Market still bearish.
See Latest Earnings Reports - A company that tops the Street's highest earnings estimate has potential to go higher. Today's key earnings beats with a stock on the move higher: None.
Stock Market Momentum
(Daily is based on a moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bearish |
Dow - Bearish |
Dow - Bearish |
Nasdaq - Bearish |
Nasdaq - Bearish |
Nasdaq - Bearish |
S&P 500 - Bearish |
S&P 500 - Bearish |
S&P 500 - Bearish |
TTD's Quality Rating of Stock - SQM - Average |
SQM, based in Santiago, Chile, produces lithium and other chemicals. Annual revenues: $2.9 billion. SQM's stock moves higher Friday and is in position to reemerge from its two-month cup-and-handle base.
So far today, SQM is trading 1.9 million shares. Its average daily volume is 2.4 million shares.
SQM is a play on lithium used for electric cars.
TTD sees SQM in a good spot to reignite its up trend. It had a good move off its breakout in May, but then retraced the gain when the stock market fell..
SQM's stock moved higher in the morning getting back to its breakpoint.
In the afternoon, the stock cleared its breakpoint line, but then slipped back late in the day.
In after-hours trading, the stock was down 38 cents a share.
Tape Action
SQM's tape action shows the recent block trades.
One can see the prices for the blocks rising from $88.40 in the prior session to as high as $91.06 late on Friday. .
A key bullish trade came in the morning when a block of 23,973 shares crossed the tape at $89.14.
That was up from the prior block at $88.40 on 35,966 shares.
Near the close a big block of 294,700 shares crossed a $90.29.
That was up from the prior trade in the sequence at $90.28 on 103 shares.
Business
SQM produces lithium used by electric car batteries.
The company also produces specialty plant nutrients, iodine derivatives, potassium chloride, potassium sulfate and certain industrial chemicals.
Specialty plant nutrients are fertilizers that enable farmers to improve yields and the quality of certain crops.
Industrial chemicals are used to make glass and industrial nitrates. Iodine and its derivatives are used in the X-ray contrast media and biocides industries.
Charts
SQM's 12-month performance chart shows the stock up 105% versus a 12% loss for the stock market.
Insider activity was not available. .
SQM's long-term chart shows the stock rising from $15 back in 2016 to a peak at $63 in 2017.
The stock then fell back to $15 by early 2020.
However, SQM has since surged to $115 recently. It ha since pulled back..
SQM's daily chart shows the stock advancing from $50 back in January to a peak near $115 by late May.
The stock has since been pulled back to the top of its base.
The CCI momentum indicator is bearish.
Earnings Outlook
SQM will report earnings soon.
Net for the second quarter should soar 526% to $1.94 a share from 31 cents the year before.
The highest estimate is at $2.86 a share.
The company beat the Street estimate in the prior two quarters by $1.56 a share and 16 cents.
This year, analysts project a 289% leap in net to $7.97 a share from the $2.05 the year before.
Going out to 2023, the Street expects a more modest 1% rise in net to $8.01 a share from the anticipated $7.97 this year.
Net for the third quarter should surge 370% to $1.74 a share from the 37 cents the year before.
Strategy Opinion: TTD is targeting SQM for a move to $110.
A protective stop can be placed near $86 after a breakout.
Intermediate-Term Rating: Average.
Suitability: Aggressive Bulls.
TTD's special research of Stocks Prior Performance:
Breakout Success |
Bullish |
SQM recent scored a big gain a breakout. |
Response to Net |
Bullish |
SQM rose 8 times after 15 earnings reports. |
Seasonal Success |
Bullish |
SQM avg. gain 0.2% in June, gain 3.2% in July. |
Earnings Beats |
Bearish |
SQM beat net estimates 5 times after 20 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 |
32% |
3/3/2022 | 67.76 | 89.13 | 4/4/2022 |
17% |
11/2/2021 | 57.24 | 67.12 | 11/22/2021 |
58% |
7/18/2017 | 37.25 | 58.70 | 9/21/2017 |
(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. Sell point can be a cut below the 50-day M/A.)
TTD Breakout Stock
Long- Term Chart
|
Stock's Price Performance after Reporting Earnings |
12 - month Performance Chart vs. S&P 500 |
Ticker Tape Digest’s
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 - 12
Stocks Screened - 6,500
Long-Term Environment for Bears: Favorable.
Bear Side - Large list of shorts even though stock market lifts. Bears can remain aggressive.
TTD's Quality Rating of Stock - AYI - Below Average |
AYI, based in Atlanta, produces building products and lighting controls. Annual revenues: $3.5 billion. AYI falls sharply Friday and undercuts key technical support.
So far today, AYI is trading a heavy 642,160 shares, almost triple its average daily volume of 238,000 million shares.
TTD sees more on the downside.
AYI's stock moved lower in the morning and undercut its key support line.
The stock touched an intraday low of $151.30 in the morning.
AYI then lifted in the afternoon and trended sideways. However, it remained below its support line.
Tape Action
AYI's tape action shows the recent block trades.
One can see the price for the blocks falling from $158.15 in the morning to as low as $152.42 later in the morning.
A key bearish trade came in the morning when a block of 2,600 shares crossed the tape at $152.42.
That was down from the prior block at $158.15 on 37,435 shares.
Near the close a big block of 111,869 shares crossed at $153.54
That was down from the prior block at $154.40 on 2,200 shares.
Business
AYI makes provides building management systems, lighting, lighting controls,.
The company operates through two segments: Acuity Brands Lighting and Lighting Controls and Intelligent Spaces Group .
It offers devices such as luminaires, lighting controls, power supplies, prismatic skylights, and drivers, as well as integrated systems.
Its building management system includes Distech Controls products for controlling heating, ventilation, and air conditioning.
Charts
AYI's daily chart shows the stock falling from $200 down to $159 by April.
The stock tried to rally, but failed.
Now it undercuts key technical support with expanding volume.
The CCI momentum indicator is very bearish.
Earnings:
AYI will report earnings soon. (See chart). The Street expects a 7% rise in net for the fiscal third quarter ending in May to $2.96 a share from the $2.77 the year before.
The company did beat the Street estimate the past four quarters.
This fiscal year ending in August, analysts forecast a 17% rise in net to $11.92 a share from the $10.17 the prior year.
For the fiscal fourth quarter ending in August, net should rise 9% to $3.56 a share from the $3.27 the prior year.
Going out to fiscal 2023 ending in August, analysts predict a 9% rise in net to $12.96 a share from the anticipated $11.92 this fiscal year.
Strategy Opinion: TTD is targeting AYI for a decline to $130 within the next few months or sooner.
A protective stop buy can be placed near $160.
Suitability: Aggressive Bears.
TTD's Stock Probability research of Prior Performance:
Response to Net |
Bullish |
AYI rose 8 times after 15 earnings report. |
Seasonal Success |
Bullish |
AYI avg. gain 1.8% in June, gain 3.8% July. |
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Guide: Symbol=Ticker, Name=Corporate name, Entry is the buy price to enter on the breakout, Last=prior close, Change=change from last close to prior, Date=date of price of close etc, Gain in blue is price above breakpoint (entry), Gain in red is price below breakpoint (entry)., % Gain in blue is % over breakpoint (entry), Gain in red is % below breakpoint (entry)
Copyright --- Ticker Tape Digest - 2022
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 1-480-704-3331 or 480-878-8381
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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.
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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.)