Go to Video Show - "How to Make Money With Breakout Stocks |
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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.
Ticker Tape Digest's Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 26, 2021
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts - 5
Quality of Breakouts - Average.
Stocks Screened - 12,234
Bull side - Small list of breakouts and very selective.
Stock market - Major averages bullish in all time sectors.
Comment - Stock market in a basing pattern. Bulls needs to be very watchful of any breakdown below support.
See Latest Earnings Reports - A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats - BBW, REX, DKS, ANF and CVCO.
Stock Market Momentum
(Daily is based on a moving average)
Market (Daily) |
Market (Weekly) |
Market (Monthly) |
Dow - Bullish |
Dow - Bullish |
Dow - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
Nasdaq - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
S&P 500 - Bullish |
TTD's Quality Rating of Stock - PGNY - ABOVE AVERAGE |
PGNY, based in New York, is a U.S. fertility benefits management firm. Annual revenues: $345 million. PGNY's stock drives sharply higher Wednesday and breaks out from its 5-week, cup-and-handle base.
So far today, PGNY is trading 963,122 shares. Its average daily volume is 946,000 shares.
TTD sees potential for more on the upside.
The stock is near a new all-time high. That is bullish. The stock came public in 2019.
PGNY's stock moved higher in the morning and cleared its base.
The stock reached an intraday high of $61.27 in the morning.
The stock then backed off a bit and trended sideways the rest of the day.
In after-hours trading PGNY was up 31 cents a share.
Tape Action
PGNY's tape action shows the recent block trades.
One can see the price for the blocks climbing from $59.35 in the prior session to as high as $61 near the close.
A key bullish trade came in the morning when a big block of 6,898 shares (duplicated) crossed the tape at $59.42.
That was up from the prior block at $59.35 on a 2,556 shares in the prior session.
At the close a big block of 27,835 shares crossed at $61.
That was up from the prior block at $60.69 on 3,500 shares.
Business
PGNY is a U.S.-based fertility benefits management firm.
The company specialized in fertility and family building benefits solutions in the U.S.
PGNY offers patients a benefits solution with education and guidance from a patient care advocate and network of fertility specialists.
PGNY seeks to reduce healthcare costs for employers through their operations.
Charts
PGNY's 12-month performance chart shows the stock up 150% versus a 40% gain for the stock market.
Insiders were buyers using stock options at 91 cents a share to $3.95.
They were sellers at $40 to $53 a share.
PGNY's long-term chart shows the stock coming public in 2019 at $16.46 a share. The stock rose to $36.50 in early 2020.
However, it was dragged down to $15.59 during to the market selloff in 2020. Since then, though, PGNY has surged to $61.
PGNY's daily chart shows the stock advancing from $40 in March to a peak near $59 by late April.
The stock formed a cup-and-handle base. It now breaks out.
The stock is a bit extended near-term.
The stock's CCI momentum indicator is bullish.
Earnings Outlook
Net this year should jump 133% to 42 cents a share from the 18 cents the prior year. Analysts have been raising their estimates.
The stock's price-earnings ratio is 145. That is high.
Looking out to 2022, the Street predicts a 32% jump in net to 55 cents a share from the anticipated 42 cents this year.
Net for the second quarter should climb to 9 cents a share from the loss of 2 cents the prior year.
Then in the third quarter net should leap 120% to 11 cents a share from the 5 cents the previous year.
Strategy Opinion: TTD is targeting PGNY for a move to $73 within the next few months, or sooner.
A protective stop can be placed near $58.
Intermediate-Term Rating: Average.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Breakout Success |
Bullish |
PGNY scored a big gain off its recent breakout. |
Response to Net |
Bullish |
PGNY rose 3 times after 5 earnings reports. |
Seasonal Success |
Bullish |
PGNY avg. gain 3.4% in June, 3.2% in July prior years. |
Earnings Beats |
Bullish |
PGNY beat Street net estimate 5 times after 7 reports. |
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
66% |
11/24/2020 | 32.16 | 53.34 | 2/24/2021 |
14% |
1/13/2020 | 29.33 | 33.34 | 1/14/2020 |
(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
TTD's Quality Rating of Stock - OMI - AVERAGE |
TTD's Quality Rating of Stock - SKY - AVERAGE |
TTD's Quality Rating of Stock - CRMT - BELOW AVERAGE |
TTD's Quality Rating of Stock - LOVE - BELOW AVERAGE |
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 - Stock market is a consolidation pattern. Only one short. So, Bears should be conservative but alert.
GOTU, based in China, provides tech-driven educational services. Annual revenues: 7.1 billion Chinese Yuan. GSX's stock falls sharply Wednesday and undercuts key technical support on big volume.
So far today, GOTU is trading 18.6 million shares, double its average daily volume of 6.9 million shares.
TTD sees more on the downside.
TTD highlighted GOTU as a short at our midsession video show on the Web Wednesday.
Tape Action
GOTU's tape action shows the recent block trades.
One can see the price for the blocks falling from $16.86 in the morning to as low as $16.23.
However, the rose later in the day to $18.34.
Business
GOTU provides technology-driven education services.
Through its subsidiaries, 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.
Analysts had no estimates for the quarter.
Charts:
GOTU's daily chart shows the stock trending lower down to around $20. The stock breaks down Wednesday and falls to $18.34.
The move is a resumption of its down trend. The stock is in a steep decline.
Strategy Opinion: TTD is targeting .GOTU for a decline to $15 within the next few months, or sooner. A protective stop buy can be placed near $19.90.
Suitability: Aggressive Bears.
TTD's Stock Probability research of Prior Performance:
Response to Net |
Bullish |
GOTU rose 4 times after 6 earnings reports. |
Seasonal Success |
Bullish |
GOTU rose avg 47% in June, 34% in July prior years. |
TTD's Quality Rating of Stock - GOTU - BELOW AVERAGE |
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
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.
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(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.)