Ticker Tape Digest

Thursday - May 20, 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.

Thursday - May 20, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  12

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some good looking plays.

Stock market  -  Major averages still bearish daily, but close to moving bullish. Other major averages bullish.

Comment -  Stock market makes nice comeback Thursday. However, it is in a basing pattern and still vulnerable.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  ADN, CSIQ, CD, PLCE and AMAT.

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

EPAM Systems Inc. (EPAM) - 472.26, up 21.02 - Breakpoint 466.05

Net To Rise 21% This Year, TTD Targets 530

  EPAM, based in Newton, Pa., provides software used by financial, media and travel firms. Annual revenues: $2.7 billion. EPAM's stock moves sharply higher Thursday and breaks out from its 5-week, flat base.

  So far today, EPAM is trading 532,899 shares. Its average daily volume is 363,000 shares.

  TTD sees potential for more on the upside.

  EPAM's push to a new high is bullish because there is no overhead resistance from prior buyers.

  EPAM's stock broke out in the morning.

  The stock then moved steadily higher through the day. The close near the high of the session is very bullish.

  In after-hours trading EPAM was unchanged.

   Tape Action

  EPAM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $451.24 in the prior session to as high as $473.32 in the afternoon.

  A key bullish trade came in the morning when a block of 1,923 shares (duplicated) crossed at $453,68.

  That was up from the prior block the day before at $451.24 on 9,587 shares.

  Near the close a big block of 46,075 shares crossed a $472.26.

  That came on an up tick from the prior trade of 200 shares on $472.96.

    Business

  EPAM provides software and digital platform engineering services.

   Its service covers the full software product development lifecycle from digital strategy and customer experience design to enterprise application platforms.

  The firm's services cover software product development, custom application development, application testing, enterprise application platforms and infrastructure management services.

The company also provides cybersecurity services.

  Charts

  EPAM's 12-month performance chart shows the stock up 110% versus a 40% gain for the stock market.

  Insiders were recent sellers at $347 to $446

  They were buyers using stock options at $23 to $112 a share.

  EPAM's long-term chart shows the stock climbing from $61 in 2016 to a peak at $248 by 20202.

  The stock fell back to $151 during the stock market sell off. However, since then EPAM has surged to $472  - a new high.

  EPAM's daily chart shows the stock rising from $338 in March to a peak near $466.

  The stock formed a tight flat base and now breaks out with a good pick up in volume.

  The move comes with a widening of the daily spread.

  The stock's CCI momentum indicator is strongly bullish.

  Earnings Outlook

  This year,analysts predict a 21% increase in net to $7.65 a share from  the $6.34 the prior year.

  The stock has a price-earnings ratio of 61. That is high.

  Going out to 2022, the Street predicts a 24% rise in net to $9.48 a share from the anticipated $7.65 this year.

 Profits for the second quarter should be up 29% to $1.89 a share from the $1.46 the previous year.

  The highest estimate is at $1.95 a share.

  Net for the third quarter should climb 16% to $1.92 a share from the $1.65 the prior year.

  The company beat the Street estimate the past four quarters by 13 cents, 10 cents, 18 cents and 28 cents a share.

Strategy Opinion:  TTD is targeting EPAM for a move to $530 within the next few months, or sooner.

A protective stop can be placed near 450.

Intermediate-Term Rating: Average.

Suitability:   Aggressive 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  - 1

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side -  Just one short as stock market rallies strongly.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Black Diamond Therapeutics Inc. (BDTX) - 13.93

Loss Seen This Year and Next, TTD Sees Drop to 10.50

  BDTX, based in Cambridge, Ma., does cancer research. Annual revenues: Nil. BDTX's tock falls sharply Thursday and undercuts key technical support.

  So far today, BDTX is trading 9.9 million shares, 30 times its average daily volume of 342,000 shares.

  The drop was due to safety concerns for products to treat tumors.

  TTD sees more on the downside.

  BDTX's stock fell in the morning and worked to an intraday low of$13.27 in the afternoon.

  The stock lifted slightly late in the day, but still finished with a big loss.

  In after-hours trading, the stock was up 23 cents a share.

    Tape Action

  BDTX's tape action shows the recent block trades.

  One can see the price for the blocks falling from $22.23 in the prior session to as low as $13.93 by the close.

  A key bearish trade came at the opening when a block of 39,915 shares (duplicated) crossed the tape at $16.42.

  That was down sharply from the prior block at $22.23 on 45,831 shares in the prior session.

   Business

  BDTX  is a precision oncology medicine company.

  The company’s technology platform, Mutation-Allostery-Pharmacology is designed to allow it to analyze population-level genetic sequencing data to identify oncogenic mutations that promote cancer across tumor types.

  BDTX 's lead product candidate, BDTX-189, is used to block the function of an undrugged family of oncogenic proteins defined by mutations which occur across a range of tumor types and which affect both the epidermal growth factor receptor  and the tyrosine-protein kinase ErbB-2.   

 Earnings:

  BDTX is expected to show a loss of $3.24 a share this year compared with a loss of $2.05 the prior year.

  Looking out to 2022, analysts predict a loss of $3.52 a share.

Charts:  

  BDTX's daily chart shows the stock gapping lower with big volume. The stock is extended to the downside. However, there is strong downside momentum that could carry the stock lower.

Strategy Opinion: TTD  is targeting BDTX for a decline to $10.50 within the next few months, or sooner. A protective stop buy can be placed near $15.

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.)