Ticker Tape Digest

Wednesday - July 21, 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 - July 21, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  8

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Good number of breakouts, but selective.

Stock market  -  Major averages rally and are bullish in all time zones.

Comment -  Aggressive bulls can be venturesome. Large list of earnings coming. So, one must be alert.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  TZOO, IPG, OFG, WRLD and FCFS.

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

Middleby Corp. (MIDD) - 187.13, up 1.58 - Breakpoint 185.68

Net To Soar 63% This Year, TTD Targets 215

  MIDD, based in Elgin, Il., sells foodservice equipment. Annual revenues: $2.5 billion. MIDD's stock moves higher Wednesday and breaks out from its 13-week, cup-and-handle base.

  So far today, MIDD is trading 500,084 shares. Its average daily volume of 560,000 shares.

  TTD sees potential for more on the upside.

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

  The stock reached an intraday high in the morning at $188.36.

  MIDD then pulled back and trended sideways the rest of the day.

  The stock was unchanged in after-hours trading.

    Tape Action

  MIDD's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $185.55 in the prior session to as high as $187.77.

  A key bullish trade came in the morning when a block of 2,906 shares crossed the tape at $186.24.

  That was up from the prior block at $185.55 on a big 117,908 shares.

  Then near the close a big block of 118,282 a shares crossed at $187.13.

  That was up from the prior block at $186.98 on 500 shares.

  Business

  MIDD makes foodservice equipment.

  Its segments include the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group.

  The food processing equipment group offers a portfolio of processing solutions for customers producing pre-cooked meat products.

  Residential Kitchen Equipment Group makes kitchen equipment for the residential market.  

  Charts

  MIDD's 12-month performance chart shows the stock up 110% versus a 30% gain for the stock market.

  Insiders have not done any recent selling or buying.

  MIDD's long-term chart shows the stock climbing from $79.11 back in February of 2016 to $150.87 by early 2017.

  The stock then trended sideways but fell in early 2020 to $41.73.

 However,  since then MIDD has surged to $187. 

  MIDD's daily chart shows the stock rising to around $185 in late April.

  The stock pulled back and over the next several months formed a classic cup-and-handle base.

  The breakout clears the base with modest volume.

  The stock's CCI momentum indicator is bullish.

  Earnings Outlook

  This year, MIDD's earnings are projected to jump 63% to $8.08 a share from $4.96 the prior year.

  The stock has a price-earnings ratio of 23.

  Looking out to 2022, the Street predicts a 14% rise in net to $9.17 a share from the anticipated $8.08 this year.

  Quarterly net will be strong.

  Profits for the second quarter should leap 271% to $2.04 a share from the 55 cents the prior year.

  The highest estimate on the Street is at $2.22 a share.

  Going out to the third quarter, net should climb 54% to $2.07 a share from the $1.34 the previous year.

Strategy Opinion:  TTD is targeting MIDD for a move to $215 within the next few months, or sooner.

A protective stop can be placed near $180.

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 as stock market stages rebound. Bears be alert as earnings will now be reported.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Cyteir Therapeutics Inc.  (CYT) - 14.57

Loss Seen This Year and Next, TTD Sees Drop to 11

  CYT, based in Golden Valley, Min., is a biotech firm working on treatments for cancer. Annual revenues: Nil.

  CYT's stock falls sharply Wednesday and undercuts key technical support.

  TTD sees more on the downside.

  CYT's stock moved lower in the morning and undercut its support line.

  The stock fell to an intraday low of $14 in the afternoon. It then trended sideways the rest of the day.

  In after-hours trading, CYT was up 43 cents a share.

   Tape Action

  CYT's tape action shows the recent block trades.

  One can see the price for the blocks falling from $16.50 in the morning to as low as $14.54 in the afternoon.

  A key bearish trade came in the afternoon when a block of 16,400 shares crossed the tape at$14.69.

  That was down sharply from the prior block at $16.50 on 2,000 shares.

    Business

  CYT is developing precision oncology medicines that inhibit deoxyribonucleic acid damage repair and cause cancer cell death through a therapeutic strategy known as synthetic lethality.

 The company's pipeline includes CYT-0851 and CYT-1853. Its lead program, CYT-0851, is an oral, once-daily, small molecule inhibitor of RAD51-mediated homologous recombination.

 Earnings:

  This year, the Street predicts a loss of $1.60 a share. There was no comparable results from the prior year.

  Looking to 2022, analysts expect a loss of $1.75 a share.

  For the upcoming second quarter, they see a loss of $1.46 a share.

Charts:  

  CYT's stock came public in June at $16.50 a share. It rose to a peak at $23.10 by late June.

  However, since then the stock has fallen sharply and Wednesday undercuts key technical support.

Strategy Opinion: TTD  is targeting CYT for a decline to $11 within the next few months, or sooner. A protective stop buy can be placed near $15.50.

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.)