Ticker Tape Digest

Wednesday - May 5, 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.

Wednesday - May 5, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  16

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays. Bulls can be venturesome.

Stock market  -  Major averages remain bullish, except for the daily Nasdaq which is bearish.

Comment -  The weakness in the Nasdaq is a warning for bulls to be alert. Earnings will continue to be reported. So, one needs to be alert.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  BDC, ODP, CPE, VRTV and BBU.

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

Echo Global Logistics Inc. (ECHO) - 36.56, up 2.81 - Breakpoint 34.54

Net To Surge 47% This Year, TTD Targets 43

  ECHO, based in Chicago, provides shipping transportation services via truck and air. Annual revenues: $2.5 billion. ECHO's stock drives sharply higher Wednesday and breaks out from its eight-week flat base.

  So far today, ECHO is trading a heavy 959,670 shares seven times its average daily volume of 145,000 shares.

  TTD sees potential for more on the upside. Shipping stocks have been strong lately.

  ECHO's stock moved higher in the morning and cleared its breakpoint.

  The stock reached an intraday high of $37.07 in the morning.

  The stock then pulled back slightly and trended sideways the rest of the day.

  It held the bulk of its gain.

  In after-hours trading, ECHO was up 43 cents a share.

   Tape Action

  ECHO's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $33.75 in the prior session to as high as $36.56 by the close.

  A key bullish trade came in the morning when a block of 3,000 shares crossed the tape at $35.23 on 3,000 shares.

  That was up from the prior block at $33.75 on 13,352 shares in the prior session.

  Near the close a big block of 32,632 shares crossed at $36.56.

  That was up from the previous block at $36.31 on 5,800 shares.

    Business

  ECHO provides transportation and supply chain management.

  The company arranges transportation by truckload  and less than truckload carriers.

It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services.

 The company's core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment.

   Charts

  ECHO's 12-month performance chart shows the stock up 125% versus a 48% gain for the stock market.

  Insiders were recent buyers using stock options at $12 to $28 a share.

  They were sellers at $31 to $27 a share.

 ECHO's long-term chart shows the stock climbing from a selloff that dragged it down to $13 in 2017 back to $36.75 by 2018.

  The stock again took a trip South falling back to $15 in 2020 due in part to the stock market selloff.

 It has since rallied back and made a new all-time high Wednesday.

  ECHO's daily chart shows the stock rising from $26 in February to around $35 by March.

  The stock put down a flat base with one shake out to the downside.

  The breakout is powerful coming with a widening of the daily price spread and expanding volume.

  Earnings Outlook

  This year, analysts predict a 47% spurt in net to $1.95 a share from the $1.33 the prior year.

  The stock has a price-earnings ratio of 18.

  Looking out to 2022, the Street looks for a 7% increase in net to $2.08 a share from the anticipated $1.96 this year.

  Quarterly earnings will be strong.

  Profits for the second quarter should jump 174% to 52 cents a share from the 19 cents the prior year.

  The highest estimate from six analysts is at 73 cents a share.

  Net for the third quarter should climb 23% to 49 cents a share from the 40 cents the previous year.

Strategy Opinion:  TTD is targeting ECHO for a move to $43 within the next few months, or sooner.

A protective stop can be placed near $33.

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  -

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of shorts but some interesting plays led by mostly medical plays. Aggressive bears can be venturesome.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Deciphera Pharmaceuticals Inc. (DCPH) - 37.02

Loss Seen This Year and Next, TTD Sees Drop to 30

  DCPH, based in Waltham, Ma., is a biotech firm  working on treatments for cancer. Annual revenues: $42.1 million. DCPH's stock cut below key support after reporting a loss for the first quarter.

  So far today, DCPH is trading a big 1.8 million shares, five times its average daily volume of 352,000 shares.

  TTD sees more on the downside.

  TTD highlighted DCPH as a short at our midsession video show on the Web.

  DCPH reported a loss for the first quarter of $1.06 a share. That was less than the Street estimate of a loss of $1.08 a share.

  However, the Street expects more red ink the rest of the year.

  TTD highlighted DCPH as a short at our midsession video show on the web.

  DCPH's stock fell in the morning and undercut key support.

  The stock worked lower the rest of the day touching an intraday low of $36.05.

   It was unable to rally during the day.

   Tape Action

  DCPH's tape action shows the recent block trades.

  One can see the price for the blocks falling from $43.29 in the prior session to as low as $37.02 by the close.

  A key bearish trade came in the morning when a block of 12,500 shares crossed at $40.

  That was down sharply from the prior block at $43.29 on 46,066 shares.

   Business

  DCPH is developing drugs to improve the lives of cancer patients. Its drug candidate includes DCC-2618, DCC-3014 and Rebastinib.

  DCC-2618 is an orally administered kinase switch control inhibitor to treat gastrointestinal stromal tumors, advanced systemic mastocytosis, gliomas, including glioblastoma multiforme and other solid tumors.

   Earnings:

  This year, DCPH is expected to show a loss of $4.23 a share this year and a loss of $2.13 in 2022.

  For the second quarter, analysts predict a loss of 95 cents a share compared with a loss of $1.20 the prior year.

Charts:  

  DCPH's daily chart shows the stock gapping sharply lower with big volume. The stock has now fallen from a peak at $71 last year to $37.

Strategy Opinion: TTD  targets DCPH for a decline to $30 within the next few months, or sooner. A protective stop buy can be placed near $39.

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.)