Ticker Tape Digest

Wednesday - June 9, 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 - June 9, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  7

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts, but some interesting plays for aggressive bulls.

Stock market  -  Major averages holding bullish. However, one needs to be watchful

Comment -  Market in a trading range. However, some interesting breakouts for aggressive bulls.

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

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

Rockwell Automation Inc. (ROK) - 279.15, up 3.72 - Breakpoint 275.21

Net To Rise 20% for Fiscal 2021 (Sept), TTD Targets 330

  ROK, based in Milwaukee, makes power systems and aerospace products. Annual revenues: $6.3 billion. ROK's stock drives higher Wednesday and breaks out from its 12-week, flat base.

  The move carries the stock to a new all-time high. That is bullish.

  So far today, ROK is trading 1.1 million shares, almost double its average daily volume of 655,000 shares.

  TTD sees potential for more on the upside.

  ROK's stock fell in the morning to $274.35. However, the stock turned and rallied most of the day and cleared its breakpoint line.

  ROK reached an intraday high at 279.88 late in the day. It then backed off near the close.

  ROK was unchanged in after-hours trading.

   Tape Action

  ROK's tape action shows the recent block trades.

  One can see the price for the blocks rising from  275.23 in the morning to as high as #279.15 by the close.

  A key bullish trade came in the morning when a block of 3,000 shares crossed the tape at $276.55.

  That was up from the prior block at $275.23 on 9,891 shares.

  Near the close a big block of 122,884 shares crossed at $279.15.

  That was up from the prior block at $278.40 on 21,200 shares.

   Business

  ROK produces industrial automation power, control and information solutions for the aerospace industry and other sectors.

 The company operates through two segments: Architecture and software and control products.

 It makes  hardware, software and communication components capable of controlling  industrial processes.

 Architecture and software has a portfolio of products, including control platforms that perform multiple control and monitoring of applications, such as drives control, motion control and machine safety control.

  Charts

  ROK's 12-month performance chart shows the stock up 26% versus a 32% gain for the stock market.

  Insiders were recent sellers at $275 to $257 a share recently.

  They were buyers at $115 to $138 a share using stock options. They bought in the open market at $262 a share.

  ROK's long-term chart shows the stock climbing from $87 back in 2016 to a peak at $210 by late 2017.

  The stock went into a long-term consolidation.

  It broke out in 2020 and has since surged to a new all-time high and now is at $279.15.

  ROK's daily chart shows the stock rising from $240 in February to a peak at $275 by late March.

  The stock put down a flat base and now clears its breakpoint line with a good pick up in volume.

  The stock's CCI momentum indicator is holding bullish.

  Earnings Outlook

  This fiscal year ending in September analysts predict a 20% increase in net to $9.21 a share from the $7.68 the prior year.

  The stock has a price-earnings ratio of 30.

  Looking out to fiscal 2022 ending in September, the Street expects a 7% rise in net to $9.86 a share from the anticipated $9.21 this fiscal year.

  Quarterly net will be strong.

  Profits for the fiscal third quarter ending in June net should spurt 62% to $2.06 a share from the $1.27 the prior year.

  The highest estimate is at $2.21 a share.

  The company beat the Street estimate the past four quarters by 26 cents a share, 46 cents, 10 cents and 14 cents.

  Net for the fiscal fourth quarter ended in September 30 should rise 25% to $2.33 a share from the $1.87 the prior year.  

Strategy Opinion:  TTD is targeting ROK for a move to $330 within the next few months, or sooner.

A protective stop can be placed near $270.

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 Wednesday. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Finance of America  (FOA) - 8.66

Profit Seen This Year, TTD Sees Drop to 7

  FOA, based in Irving, Tex., provides an internet service for borrowers with investors. Annual revenues: Nil. FOA's stock falls sharply Wednesday and undercuts key support.

  So far today, FOA is trading a heavy 787,186 shares, almost double its average daily volume of 403,000 shares.

  TTD sees potential for more on the downside.

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

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

  The stock worked to an industrial low of $8.62 in the afternoon. FOA was unable to rally during the day.

   Tape Action

  FOA's tape action shows the recent block trades.

  One can see the price for the blocks falling from $9.32 in the morning to as low as $8.65 in the afternoon.

  A key bearish trade came in the morning when a block of 5,669 shares crossed the tape at $9.24 a share.

  That was down from the prior block at $9.32 on 4,664 shares.   

   Business

FOA provides a platform that connects borrowers with investors.

The company is focused on residential mortgage loan products throughout the U.S.

 Its offering includes traditional mortgage loans and reverse mortgage loans to consumers, and business purpose loans to residential real estate investors.

The Company have built a distribution network that allows customers to interact through their preferred method: in person, through a broker, telephonically or digitally.

  Earnings:

  This year, analysts forecast FOA will show a profit of $1.77 a share. There was no comparable figure from a year ago.

  Going out to 2022, they predict a 27% increase in net to $2.24 a share from the anticipated $1.77 this year.  

Charts:  

  FOA's daily chart shows the stock peaking in May at $11.64. The stock fell down hard to $9.22 in May.

  The stock bounced up to $10.50, but now rolls over and falls sharply.

Strategy Opinion: TTD  is targeting FOA for a decline to $7 within the next few months, or sooner. A protective stop buy can be placed near $9.10.

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.)