Ticker Tape Digest

Tuesday - June 1, 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.

Tuesday - June 1, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  22

Quality of Breakouts -  Average.

Stocks Screened - 12,234

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

Stock market  -  Major averages bullish in all time sectors.

Comment -  Bulls can be venturesome. Stock market still basing.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  LX, CLDR, MLAB, CMRE and APPS.

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

American Express Co. (AXP) - 163.76, up 3.63 - Breakpoint 160.89

Net To Surge 39% This Year, TTD Targets 190

  AXP,  based in New York, provides credit card services. Annual revenues: $37 billion. AXP's stock drives higher Tuesday and breaks out from its 5-week, flat base.

  So far today, AXP is trading 3.8 million shares. Its average daily volume is 2.8 million shares.

  TTD sees more on the upside. TTD highlighted AXP as a breakout at our midsession video show on the Web.

  AXP's breakout carries it to a new all-time high. That is bullish.

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

  The stock rose to a morning peak at $163.79. It then pulled back slightly.

  Then in the afternoon, AXP came on again and reached an intraday peak at $164.11.

  In after hours trading, AXP was up 98 cents a share.

 Tape Action

  AXP's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $160.13 in the prior session to as high as $163.90 late in the day.

  A key bullish trade came in the morning when a block of 75,602 shares (duplicated) crossed the tape at $152.50.

  That was up from the prior block at $160.13 on 395,141 shares in the prior session.

  Near the close a block of 465,993 shares crossed at $163.76.

  That was up from the prior block at $163.74 on 10,323 shares.

     Business

  AXP handles charge and credit card products, and travel-related services.

  The company's segments include the Global Consumer Services Group, Global Merchant and Network Services, and Global Commercial Services.

 AXP's services includes network services; merchant acquisition and processing, servicing and settlement, and point-of-sale marketing. 

   Charts

  AXP's 12-month performance chart shows the stock up 68% versus a 38% gain for the stock market.

  Insiders were recent sellers at $119 to $157 a share.

  They were buyers using stock options at $49 to $77 a share.

  AXP's long-term chart shows the stock climbing from $50 back in 2016 to a peak at $138 in early 2020.

  The stock was then dragged down to $67 due to the stock market sell off.

 However, AXP has since surged back to a new high at $163.76.  

  AXP's daily chart shows the stock climbing from near $120 back in February to a peak near $160 by May.

  AXP put down a flat base and now breaks out with a pick up in volume.

  The stock is in a solid up trend.

  AXP's CCI momentum indicator is strongly bullish.

   Earnings Outlook

  This year, the Street expects AXP to show a 39% jump in earnings to $7.42 a share from the $5.34 the prior year.

  The stock has a price-earnings ratio of 22.

  Looking out 2022, analysts predict a 23% increase in net to $9.12 a share from the anticipated $7.42 this year.

  Profits for the upcoming second quarter should jump 434% to $1.55 a share from the depressed 29 cents the prior year.

  The highest estimate is at $1.71 a share from  8 analysts. The company beat the Street estimate the past two quarters by 6 cents a share and 50 cents.

  Net for the third quarter should rise 28% to $1.66 a share from the $1.30 the prior year.

Strategy Opinion:  TTD is targeting AXP for a move to $190 within the next few months, or sooner.

A protective stop can be placed near  $157.

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  - 1

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Only one short, Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Zogenix Inc.  (ZGNX) - 16.98

Loss Seen This Year and Next, TTD Sees Drop to 13.50

  ZGNX, based in Emeryville, Ca., is a drug firm working on treatments for nervous system problems. Annual revenues: $13.6 million. ZGNX's stock declines Tuesday and undercuts key technical support.

  So far today, ZGNX is trading 1.2 million shares, almost double its average daily volume of 687,000 shares.

  TTD sees potential for more on the downside.

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

 The stock touched a low of $16.95 in the morning and then trended mostly sideways the rest of the day up until the final hour.

  It then touched its low of the day at $16.95.

  In after hours trading ZGNX was up 27 cents a share.

   Tape Action

  ZGNX's tape action shows the recent block trades.

  One can see the price for the blocks falling from $17.55 in the prior session to as low as $16.97 near the close.

  A key bearish trade came in the morning when a block of 6,500 shares crossed the tape at $17.08.

  That was down sharply from the prior block at $17.55 on 55,000 shares in the prior session.

   Business

  ZGNX is developing drugs for central nervous system  therapies that address specific clinical needs for people living with orphan and other CNS disorders.

  Its primary area of therapeutic focus is epilepsy and related seizure disorders.

  The firm's lead product candidate, ZX008, is a low-dose fenfluramine to treat seizures associated with Dravet syndrome.

The company has an additional product candidate such as  Relday to treat schizophrenia.

  Earnings:

  This year, analysts predict a loss of $3.36 a share versus a loss of $3.90 the prior year.

  Going out to 2022, they predict a loss of $1.84 a share.

  For the upcoming second quarter, they project a loss of 92 cents a share compared with a loss of 96 cents the prior year.

Charts:  

  ZGNX's daily chart shows the stock in a steady down trend. That is very bearish.

  The 12-month performance chart shows the stock down 40%.

Strategy Opinion: TTD  is targeting .ZGNX  for a decline to $13.50 within the next few months, or sooner. A protective stop buy can be placed near $18.10.

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.)