Ticker Tape Digest

Monday - April 19, 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 Swng - 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 - April 19, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  6

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts. Bulls be conservative and patient.

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

Comment -  Bulls be conservative. Earnings reports will start to pick up now. One must be alert.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  AMRB, HOG, STL, ACC and MTB.

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

Western Alliance Bancorp. (WAL) - 102.14, up 1.88 - Breakpoint 100.66

Net Tops Estimates, TTD Targets 120

  WAL, based in Phoenix, is a bank holding company with interests in states such as Arizona, Nevada and California. Annual revenues: $1.1 billion. WAL's stock moves sharply higher Monday and breaks out from its 9-week flat base.

  So far today, WAL is trading 1.2 million shares. Its average daily volume is 722,000 shares.

  WAL checked in with net for the first quarter of $1.90 a share. That topped the consensus estimate on the Street of $1.47 a share.

  TTD sees potential for more on the upside.

  TTD highlighted WAL a breakout at our midsession video show on the Web Monday.

  WAL's stock gapped higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high in the morning. It hit an intraday high of 104.85 in the morning.

  The stock then drifted back during the day.

  Tape Action

  WAL's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $100.26 in the prior session to as high as $103.62 in the morning.

  A key bullish trade came in the morning when a block of 16,427 shares (duplicated) crossed the tape at $101.93.

  That was up from the prior block at $100.26 on 99,196 shares in the prior session.

  Near the close Monday a big block of 77,321 shares crossed at $102.14.

  That was up from the prior block at $101.96 on 2,255 shares.

  Business

  WAL is a bank holding company.

 The company provides deposit services, lending, treasury management, international banking and online banking products and services through its subsidiary, Western Alliance Bank.

 WAL's regional segments include Arizona, Nevada, Southern California and Northern California, which provide banking services.

 The operations from the regional segments correspond to the banking divisions, which include Alliance Bank of Arizona, Bank of Nevada and First Independent Bank in Nevada, Torrey Pines Bank in Southern California, and Bridge Bank in Northern California.  

  Charts

  WAL's 12-month performance chart shows the stock up 220% versus a 50% gain for the stock market.

  Insiders were recent sellers at $94 to $98 a share. They have not done any buying recently.

  WAL's long-term chart shows the stock moving higher from $35 to a peak at $56 in 2018.

  The stock then fell back to $20.98 by early 2020. However, WAL has since surged higher. It is now at an all-time high.

  WAL's daily chart shows the stock climbing from $60 back in December to a peak near $100 by February.

  The stock then put down a tight flat base.

  The stock moved higher in the prior session. Monday, WAL clears its breakpoint.

  The stock's CCI momentum indicator is strongly bullish.

    Earnings Outlook

  This year, analysts predict a big 43% surge in net to $7.23 a share from the $5.04 the prior year.

  The stock has a price-earnings ratio of 14.

  Looking out to 2022, the Street expects a 14% rise in net to $8.25 a share from the anticipated $7.23 this year.

  Quarterly earnings will be very strong.

  Net for the second quarter should spurt 87% to $1.74 a share from the 93 cents the prior year.

  The highest estimate for the quarter is at $2.03 a share.

  The company beat the quarterly estimate the prior quarters by 44 cents a share, 55 cents, 32 cents and 24 cents.

  Profits for the third quarter should climb 51% to $2.06 a share from the $1.36 the year before.

Strategy Opinion:  TTD is targeting WAL for a move to $120 within the next few months, or sooner.

A protective stop can be placed near $98.

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  - 8

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Short list expands. Bears be conservative. Earnings now will be a big factor on stocks.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Root Inc. (ROOT) - 10.20

Loss Seen This Year and Next, TTD Sees Drop to 8

  ROOT, based in Columbus, Ohio, provides insurance covering auto and rental. Annual revenues: $346 million. ROOT's stock falls sharply Monday and undercuts key technical support.

  The move takes the stock to an all-time low . It came public in October and was as high as $25.63.

  TTD sees potential for more on the downside.

  So far today, ROOT is trading 4 million shares. Its average daily volume is 5.1 million shares.

  ROOT's stock fell in the morning and touched an intraday low of $10.05.

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

   Tape Action

  ROOT's tape action shows the recent block trades.

  One can see the price for the blocks falling from $11.11 in the prior session to as low as $10.10 in the afternoon.

  A key bearish trade came in the morning when a block of 12,028 shares (duplicated) crossed the tape at $11.

  That was down from the prior block at $11.11 on 52,924 shares Friday.

  Near the close a massive block of 500,000 shares crossed at $10.20.

  That was down from the prior block at $10.22 on 15,000 shares.

  Business

  ROOT provides a direct-to-consumer personal auto insurance and renters’ insurance.

 Through its mobile platform, customers can manage policy adjustments digitally, including through intelligent chat functions.

  In the event of an accident, claims can be adjudicated digitally with various repairable claims resolved and paid within 24 hours. 

  Earnings:

  This year, analysts predict a loss of $1.97 a share compared with a loss of $4.81 the prior year.

  Looking out to 2022, the Street expects a loss of $1.80 a share.

  For the first quarter, a loss of 45 cents a share is expected.

Charts:  

  ROOT's daily chart shows the stock falling from $25 in January down to $10.50 by March.

  The stock tried to rally, but failed and has now rolled over.

Strategy Opinion: TTD is targeting ROOT for a decline to $8 within the next few months, or sooner. A protective stop buy can be placed near $10.60.

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.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  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.)