Ticker Tape Digest

Thursday - July 1, 2021

TTD doesn't publish Friday. Market closed Monday. We resume Tuesday.

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 - July 1, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  6

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts but some interesting plays.

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

Comment -  Moving into July a generally bullish month. Bulls need to be alert for any earnings announcements.

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

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

Eaton Corp. (ETN) - 150.17, up 1.99 - Breakpoint 149.33

Net To Jump 47% This Year, TTD Targets 180

  ETN, based in Dublin, provides managed electric products such as fire detection and circuit protection. Annual revenues: $17.9 billion. ETN's stock moves higher Thursday and breaks out from its nine-week, flat base.

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

  TTD sees more on the upside.

  So far today, ETN is trading 2.2 million shares. Its average daily volume is 1.6 million shares.

  TTD highlighted ETN as a breakout at our midsession video show on the Web Thursday.

  ETN cleared its breakpoint in the morning.

  The stock worked to a peak at $150.71 in the morning.

 The stock then trended sideways easily holding above its breakpoint.

  In after hours trading ETN was up 13 cents a share.

   Tape Action

  ETN's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $148.18 in the prior session to as high as $150.51 late in the session.

  A key bullish trade came in the morning when a block of 36,792 shares (duplicated) crossed the tape at $149.84.

  That was up from the prior block at $148.18 on 202,839 shares in the prior session.

  Near the close a big block of 193,870 shares crossed at $150.17.

  That came on an up tick from the prior trade at $150.16 on 337 shares.

   Business

  ETN provides products for customers to manage electrical, hydraulic and mechanical power.

  The electrical products consists of electrical components, industrial components, residential products, single phase power quality, fire detection, wiring devices and circuit protection.

The hydraulics segment offers hydraulics components, systems and services for industrial and mobile equipment.

The aerospace group is a supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use.

 The vehicle segment makes drivetrain, powertrain systems and critical components for cars, light trucks and commercial vehicles.

   Charts

  ETN's 12-month performance chart shows the stock up 70% versus a 35% gain for the stock market.

  Insiders were recent buyers using stock options at $56 to $81 a share.

  They were sellers at $114 to $148 a share.

  ETN's long-term chart shows the stock climbing from $46 in early 2016 to a peak at $105 by early 2020.

  The stock fell back $56 in 2020 due to the stock market sell off. However, ETN has since surged back getting to $150.

  ETN's daily chart shows the stock climbing from $120 to $149.

  The stock put down a flat base with two shakeouts to the downside.

  Thursday, it breaks out with a pick up in volume.

  The stock's CCI momentum indicator is solidly bullish.

   Earnings Outlook

  This year, analysts  predict a 47% jump in earnings to $6.25 a share from  the $4.24 the prior year.

  The stock has a price-earnings ratio of 24.

  Looking out to 2022, the Street expects a 10% rise in net to $6.88 a share from the anticipated $6.25 this year.

  Quarterly earnings will be strong.

  Net for the second quarter should leap 80% to $1.26 a share from the 70 cents the prior year.

  The highest estimate is at $1.28 a share.

  Profits for the third quarter should climb 31% to $1.54 a share from the $1.18 the previous year.   

Strategy Opinion:  TTD is targeting ETN for a move to $180 within the next few months, or sooner.

A protective stop can be placed near $145.

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  - 2

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

Micro Focus International (MFGP) - 6.39

Posts Loss for First Half, TTD Sees Drop to 5

  MFGP, based in Newbury, U.K., produces software for businesses. Annual revenues: $3 billion. MFGP's stock falls sharply Thursday and undercuts key support.

  So far today, MFGP is trading a heavy 4 million shares, eight times its average daily volume of 493,000 shares.

  TTD sees more on the downside.

  MFGP's decline came when the company reported a loss for the fiscal first half ending in April.

  MFGP's moved lower in the morning and undercut its key technical support.

  The stock then trended mostly sideways the rest of the day unable to rally.

  In after-hours trading, the stock was up 9 cents a share.

  Tape Action

  MFGP's tape action shows the recent block trades.

  One can see the price for the blocks falling from $7.53 in the prior session to as low as $6.34 late in the day.

  A key bearish trade came in the morning when a block of 7,457 shares (duplicated) crossed the tape at $6.89.

  That was down sharply from the prior block the day before at $7.53 on 22,931 shares.

  Business

  MiFGP produces software to build and operate an enterprise.

 The company is focused on enabling organizations to run and digitally transform its business with solutions  that include information and security.

 MFGP also offers Micro Focus software as a service and Micro Focus government solutions.

  Earnings:

  This fiscal year ending in October, analysts have been predicting an 8% rise in net to $1.66 a share from the $1.54 the prior year.

  Looking out to fiscal 2022 ending in Oct., the Street predicts a 1% decline in the to $1.64 a share.

Charts:  

  MFGP's daily chart shows the stock gapping lower and cutting below key support on heavy volume.

  Long-term, MFGP has been trending lower from an all-time peak at $43 set back in 2017.

Strategy Opinion: TTD  is targeting MFGP for a decline to $5 within the next few months, or sooner. A protective stop buy can be placed near $6.80.

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.)