Ticker Tape Digest

Monday - May 24, 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 - May 24, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  11

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays for aggressive bulls.

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

Comment -  Stock market is in a basing pattern. One needs to be very watchful.

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

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

Mayville Engineering Co. (MEC) - 18.75, up 1.63 - Breakpoint 18.30

Net To Climb 33% This Year, TTD Targets 24

  MEC, based in Mayville, Wisc. makes production fabrication and assembly components for commercial vehicles and for the military. Annual revenues; $357.6 million. MEC's stock drives higher Monday and breaks out from its 12-week, cup-and-handle base.

  So far today, MEC is trading 155,115 shares, triple its average daily volume of 48,000 shares.

  TTD sees more on the upside.

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

  The stock worked to an intraday high of $19.17 in the afternoon.

  The stock then backed off a bit late in the day.

  The stock was unchanged in after-hours trading.

   Tape Action

  MEC's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $17.12 in the prior session to as high as $18.85 in the afternoon.

 A key bullish trade came in the morning when a block of 1,419 shares crossed the tape at $18.

  That was up from the prior block the prior session at $17.12 on 1,851 shares.

  Near the close a block of 2,810 shares crossed at $18.75.

  That was up sharply from the prior block at $17.85 on 14,063 shares.   

    Business

  MEC makes prototyping and tooling, production fabrication, coating, assembly and aftermarket components.

The company sells to  end markets, including heavy and mediumduty commercial vehicles, construction, powersports, agriculture and the military.

 MEC  also provides metal fabrication, metal stamping, tube bending and forming, robotic part forming, robotic welding, resistance welding, five-axis tube and fiber laser cutting and custom coatings.

  Charts

  MEC's 12-month performance chart shows the stock up 195% versus a 40% gain for the stock market.

  Insiders were recent buyers at $16.32 a share. They have not done any selling recently.

  MEC 's long-term chart shows the stock coming public in 2019 at $16.03 a share.

  The stock fell back to $3.89 last year. However, it has since rallied strongly to $18.75 and has hit a new high.

  MEC's daily chart shows the stock rising from $14 to a peak at $18.30 by March.

  The stock pulled back and formed a cup-and-handle base.

  The breakout cuts through a breakpoint zone with strong volume.

  The stock's CCI momentum indicator is strongly bullish.

  Earnings Outlook

  This year, analysts predict a profit of 65 cents a share versus a loss of 36 cents a share the prior year.

  The highest estimate is at 85 cents a share.

  Looking out to 2022, the Street sees a big 169% jump in net to $1.75 a share from the anticipated 65 cents this year.

  Net for the second quarter should come in at 18 cents a share against a loss of 35 cents the prior year.

  The highest estimate is at 27 cents a share.

  Going out to the third quarter net should climb to 19 cents a share versus a loss of 5 cents the prior year.

Strategy Opinion:  TTD is targeting MEC for a move to $24 within the next few months, or sooner.

A protective stop can be placed near $17.50

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  - 3

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

GSX Techedu Inc.  (GOTU) - 19.54

Loss Seen This Year and Next, TTD Sees Drop to 15.50

  GOTU, based in China, provides technology services for education. Annual revenues: $7.1 billion Chinese Yuan. GOTU's stock falls sharply Monday and undercuts key technical support.

  So far today, GOTU is trading a heavy 13.1 million shares, almost double its average daily volume of 7.3 million shares.

  TTD sees potential for more on the downside.

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

   Tape Action

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

  The stock touched an intraday low of $18.60 around noon.

  It rallied back to $19.50 in the afternoon, but then faded later in the day.

   Business

  GOTU's tape action shows the recent block trades.

  One can see the price for the blocks falling from $20.10 in the morning to as low as $19.05 by the close.

  A key bearish trade came in the morning when a block of 28,482 shares crossed the tape at $20.

  That was down from the prior block at $20.10 on 108,497 shares.

  Near the close a block of 139,695 shares crossed at $19.05.

  That was down from the prior block at $19.15 on 39,835 shares.

  GOTU  provides technology-driven education services.

  The company is engaged in the provision of online K-12 after-school tutoring services.

   It also offers foreign language, professional and interest courses.

 Earnings:

  This year, analysts predict a loss of 41 cents a share compared with a loss of 89 cents the prior year.

  Looking out to 2022, the Street projects a loss of 10 cents a share.  

Charts:  

  GOTU 's daily chart shows the stock falling from $149 earlier this year to $19.05. The stock tried to make a bottom but now cuts below key support.

Strategy Opinion: TTD is targeting GOTU for a decline to $15.50 within the next few months, or sooner. A protective stop buy can be placed near $20.40.

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.)