Ticker Tape Digest

Monday - March 22, 2021

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 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.

Monday - March 22, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  7

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts but some interesting plays.

Stock market  -  Major averages are bullish in all time sectors.

Comment -  Small list of breakouts but some good looking plays for aggressive bulls.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  DSP and SNX.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action

(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 near breakpoint by using market order or stop buy.  They can also be bought soon after a follow through move, sometimes on an intraday pullback. )  

Today's Featured TTD Breakout Stock

RH - 528.66, up 13.05 - Breakpoint 525.79

Net To Soar 51% for Fiscal 2021 (Jan), TTD Targets 590

  RH, based in Corte Madera, Ca., sells home furnishings. Annual revenues: $2.6 billion. RH's stock moves higher Monday and breaks out from its 11-week, flat base.

  The move carries the stock to a new all-time. That is bullish.

  TTD highlighted RH as a breakout a our midsession video show on the web Monday.

  TTD sees potential for more on the upside. RH is a leader.

  RH's stock cleared its breakpoint in the morning.

  The stock worked higher in the afternoon and reached an intraday high of 540.49.

  The stock backed off a bit late in the day, but held above the breakpoint.

  In after-hours trading, RH was up 12 cents a share.

  Tape Action

  RH's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $515.61 in the prior session to as high as $539.50 in the afternoon.

  A key bullish trade came at the opening when a block of 8,498 shares (duplicated) crossed the tape at $523.58.

  That was up from the prior block the prior session at $515.61 on 164,800 shares.

  Near the close a block of 26,552 shares (duplicated) crossed at $528.66.

  That was down from the prior trade at $529.37 on 100 shares.

  Business

  RH, formerly Restoration Hardware Holdings, Inc., is a retailer in the home furnishings marketplace.

 The company sells furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings.

RH's non-furniture category includes lighting, textiles, fittings, fixtures, surfaces, accessories and home decor.

The company also owns a controlling interest in Design Investors WW Acquisition Company, LLC, which owns the business operating under the name 'Waterworks'.  

  Charts

  RH's 12-month performance chart shows the stock up 550% versus a 60% gain for the stock market.

  Insiders were buyers using stock options. The price was not disclosed.

  They have not done any selling.

  RH's long-term chart shows the stock breaking out back in 2018 at $100. The stock advanced to a peak at $256 in early 2020.

  The stock fell back to $73 in early 2020 when the stock market took a dive.

  The stock then turned and has since rallied strongly to a new all-time high of $540 Monday.

  RH's daily chart shows the stock in a flat base with two shakeouts to the downside.

  The breakout clears the base with a modest volume.

  Earnings Outlook

  Net for the fiscal year ending in January of this year should surge 51% to $17.55 a share from the $11.66 the prior year.

  The stock has a price-earnings ratio of 30.

  Looking out to fiscal 2022 ending in January the Street predicts a 9% increase in net to $19.16 a share from the anticipated $17.55 for fiscal 2021.

  Quarterly earnings will be strong.

  Net for the fiscal fourth quarter ended in January the Street predicts a 28% leap in net to $4.76 a share from the $3.72 the prior year.

 Then in the fiscal first quarter analysts predict a big 120% spurt in net to $2.80 a share from the $1.27 the prior year.

  The company beat the Street estimate the past four quarters by 78 cents a share, $1.46, 47 cents and 13 cents.

Strategy Opinion:  TTD is targeting RH for a move to $590 within the next few months, or sooner.

A protective stop can be placed near $515.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

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

           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 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

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  - 2

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of shorts. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Kingsoft Cloud Holdings Ltd.  (KC) - 46.30

Loss Seen This Year and Next, TTD Sees Drop to 38

  KC, based in China, provides cloud services. Annual revenues: $897 million. KC's stock breaks down Monday from a head-and-shoulder pattern Monday.

  So far today, KC is trading 1.8 million shares. Its average daily volume is 2.1 million shares.

  TTD sees potential for more on the downside.

  KC's stock cut below support in the morning and declined to around $46.

  The stock then trended mostly sideways the rest of the day.

  In after-hours trading, KC was down 27 cents a share.

  Tape Action

  KC's tape action shows the recent block trades.

  One can see the price for the blocks falling from $50 in the morning to as low as $46 in the early afternoon.

  A key bearish trade came in the morning when a block of 3,000 shares crossed the tape at $49.89.

  That was down from the prior block at $50 on 4,142 shares.

  Near the close a big block of 40,687 shares (duplicated) crossed a $46.30.

  That was down from the prior block at $46.50 on 3,994 shares.

  Business

  KC  builds cloud platform  consisting of cloud infrastructure, cloud products and industry-specific solutions.

The company mainly conducts its businesses in China.

  Earnings:

  This year, analysts forecast a loss of 35 cents a share compared with a loss of 76 cents the prior year.

  There was no quarterly estimates available.

  Looking out to 2022, the Street predicts a profit of 33 cents a share.

Charts:  

  KC's daily chart shows the stock cutting below key support from a classic head and shoulder pattern.

  Since February, KC has been working lower from a peak at $74 down to $46.

Strategy Opinion: TTD is targeting KC for a decline to $38 within the next few months, or sooner. A protective stop buy can be placed near $51.

Suitability:  Aggressive Bears.

  TTD's Stock Probability research of Prior Performance:  

   Stock's 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. - 2021

    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.

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  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.

 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.)