Thank to all of the subscribers who sent in their symbol requests. I couldn't cover them all, but the ones I liked I have added to "Stocks to Review".
When I ran my scans today to search for a theme, I found none except that there are more Industrials and Real Estate is beginning to appear again. Nothing earthshaking here.
I will continue to caution you on opening any new positions. Today one of the requests is a very low-priced stock, so it is an easy way to nibble if you position size properly. I have pared my exposure down to 8% rather than add any new positions.
Don't forget to register for tomorrow's Diamond Mine trading room! The link is below and right here.
Quick announcement: Monday's DP Free Trading Room has been moved to Tuesday.
Today's "Diamonds in the Rough": AIG, CNI, HEI, HNRG and K.
Stocks to Review (No order): BGS, REYN, DEA, HIW, SRC, FHI, JXN, UCBI, ARNC, VNO, FOSL, ARCH, XRX, MOS and CP.
RECORDING LINK (2/11/2022):
Topic: DecisionPoint Diamond Mine (2/11/2022) LIVE Trading Room
Start Time: Feb 11, 2022 09:00 AM
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Access Passcode: Diamond@11
REGISTRATION FOR Friday 2/18 Diamond Mine:
When: Feb 18, 2022 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (2/18/2022) LIVE Trading Room
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Topic: DecisionPoint Trading Room
Start Time: Feb 14, 2022 09:00 AM
Meeting Recording Link.
Access Passcode: Valentine#14
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Welcome to DecisionPoint Daily Diamonds, wherein I highlight ten "Diamonds in the Rough" per week. These are selected from the results of my DecisionPoint Scans, which search for stocks that could benefit from the trend and condition of the market. Remember, these are not recommendations to buy or sell, but are the most interesting of the stocks that surfaced in my scans. My objective is to save you the work of the initial, tedious culling process, but you need to apply your own analysis to see if these stocks pique your interest as well. There are no guaranteed winners here!
"Predefined Scans Triggered" are taken from StockCharts.com using the "Symbol Summary" option instead of a "SharpChart" on the workbench.
American Intl Group, Inc. (AIG)
EARNINGS: 2/16/2022 (AMC) ** Reported Yesterday **
American International Group, Inc. engages in the provision of a range of property casualty insurance, life insurance, retirement products, and other financial services to commercial and individual customers. It operates through the following segments: General Insurance, Life and Retirement and Other Operations. The General Insurance segment consists of insurance businesses in North America and International business areas. The Life and Retirement segment includes Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets. The Other Operations segment covers income from assets held by the company and other corporate subsidiaries. The company was founded by Cornelius Vander Starr in 1919 and is headquartered in New York, NY.
Predefined Scans Triggered: Elder Bar Turned Green and P&F High Pole.
AIG is down -0.20% in after hours trading. I covered AIG on February 17th 2021. The stop was never hit so the position is up +41.9%. AIG reported earnings yesterday and given today's action, it apparently went over well with investors. After a sharp pullback to the 50-day EMA, price is rebounding. The RSI moved back into positive territory and is rising. The PMO just triggered a whipsaw BUY signal. Stochastics turned up in positive territory above net neutral (50). Relative strength is very good across the board. The stop can be set thinly below the 50-day EMA or you can deepen it to 10% where it would have to break below $56 to trigger.
The weekly RSI is positive and rising and the weekly PMO is nearing a crossover BUY signal. AIG is near all-time highs so consider a 14% upside target at around $70.
Canadian National Rail Co. (CNI)
EARNINGS: 4/25/2022 (AMC)
Canadian National Railway Co. engages in rail and related transportation business. The firm services include rail, intermodal, trucking, supply chain services, business development and maps and network. Its offers their services in automotive, coal, fertilizer, food and beverages, forest products, dimensional loads, grain, metals and minerals and petroleum and chemicals industries. The company was founded on June 6, 1919 and is headquartered in Montreal, Canada.
Predefined Scans Triggered: None.
CNI is down -0.49% in after hours trading. A reader brought this railroad and one other (CP listed in "Stocks to Review"). I like the railroads, but as I told him, their problem is they are slow movers, but in times like these, a slow mover might hold less risk. CNI's problem right now is overhead resistance at the September high. The indicators are bullish so I expect it to push past this level, but it is going to get tougher as there are two more areas of overhead resistance to contend with. We have a brand new IT Trend Model "Silver Cross" BUY signal as the 20-day EMA crossed above the 50-day EMA for a "silver cross". The PMO just hit positive territory and the RSI is positive. Stochastics are above 80 implying internal strength. The group is kicking it in high gear against the SPY and CNI tends to perform in line with the group. Right now strength is building. The stop can be set just below the trading range and 200-day EMA.
Price is nearing all-time highs once again so consider an upside target around $144. The weekly RSI is positive and rising. The weekly PMO isn't so sure yet, but it is decelerating.
Heico Corp. (HEI)
EARNINGS: 2/23/2022 (AMC) ** Reports on Wednesday **
HEICO Corp. engages in the manufacturing of electronic equipment for the aviation, defense, space, medical, telecommunications, and electronics industries. It operates through the Flight Support Group and Electronic Technologies Group segments. The Flight Support Group segment designs, manufactures, repairs, overhauls, and distributes jet engine and aircraft component replacement parts. The Electronic Technologies Group segment designs and manufactures electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels and indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers, photo detectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems, and memory products. The company was founded in 1957 and is headquartered in Hollywood, FL.
Predefined Scans Triggered: New CCI Buy Signals, Hollow Red Candles and P&F Double Top Breakout.
HEI is unchanged in after hours trading. In all honesty, I may open a position in Aerospace or the Defense industry based on the Russia-Ukraine unrest. When the Olympics are over, we will likely have a stand off with China regarding Taiwan. This area of the market could be very attractive. However, I will need more evidence I'm on track with this before opening a new position in this market.
I like the breakout above the 20/50-day EMAs. It is getting close to overhead resistance at the December highs, but I like the indicators so far. The RSI is flat but still positive. The PMO is on a BUY signal but may be decelerating its rise somewhat. Stochastics are very bullish. Relative strength has been with this industry group for almost three weeks (I'm surprised my scans didn't pick up these stocks). HEI is starting to outperform the group which means an increase in relative strength against the SPY. The stop can be set below the early February low.
HEI doesn't like this price level. When it has flirted with $150, it is eventually turned away. It has a good chance of breaking above it now. The RSI is positive and the PMO is rising toward a crossover BUY signal. Since it is at all-time highs, consider setting an upside target of 14% around $165.31.
Hallador Energy Co. (HNRG)
EARNINGS: 3/7/2022 (AMC)
Hallador Energy Co. engages in business through its subsidiary, Sunrise Coal, LLC, which produces coal in the Illinois Basin for the electric power generation industry. It also owns summit terminal, a transport facility on the Ohio River. The company was founded by David C. Hardie in 1951 and is headquartered in Terre Haute, IN.
Predefined Scans Triggered: None.
HNRG is down heavily -2.77% in after hours trading. Given the filled black candlestick, we could see that stick tomorrow. Price is up against overhead resistance at the late July high. Given it is so low-priced, I wouldn't consider buying this without using a 5-minute candlestick chart tomorrow. The other coal company requested was ARCH. I like Coal; it's certainly been outperforming. It may need to cool somewhat given the RSI is so overbought. However, I like the PMO configuration and Stochastics are suggesting internal strength. The stop is set at the early November low. I didn't want to set it much deeper.
The weekly chart looks very encouraging. The weekly RSI is positive and rising and the weekly PMO has just turned up on this week's strong rally. If it can reach the 2021 high that is a very large gain of over 37%.
Kellogg Co. (K)
EARNINGS: 5/5/2022 (BMO)
Kellogg Co. engages in the manufacturing, marketing, and distribution of ready-to-eat cereal and convenience foods. The firm markets cookies, crackers, crisps, and other convenience foods, under brands such as Kellogg's, Cheez-It, Pringles, and Austin to supermarkets in the U.S. It operates through the following geographical segments: North America, Europe, Latin America, and AMEA(Asia Middle East Africa). The company was founded by Will Keith Kellogg in 1906 and is headquartered in Battle Creek, MI.
Predefined Scans Triggered: None.
K is up +0.56% in after hours trading. I covered K in the April 23rd 2020 Diamonds Report. The position stopped out after being up over 13%. It seems to have paused at resistance at September top around $65. The RSI is positive and rising and the PMO just triggered a crossover BUY signal today. We almost saw a "silver cross" of the 20/50-EMAs. Stochastics are rising and should get above 80 soon... it is looking a bit toppy though. I like that bullish relative strength of the group and K. The stop can be set below strong support below the October low.
K is up against overhead resistance, but notice the rising bottoms with the flat top of resistance. That is a bullish ascending triangle in the long term. The weekly RSI is positive and the weekly PMO is turning up above its signal line which is especially bullish. K looks pretty good in the short term, but I like the intermediate-term chart best. A breakout above this resistance area would be very interesting. If we were in a market with a strong bullish bias I'd consider it, but I don't want anymore exposure right now.
Don't forget, on Thursdays I look at reader-requested symbols, click HERE to shoot me an email. I read every email I receive and try to answer them all!
Current Market Outlook:
Market Environment: It is important to consider the odds for success by assessing the market tides. The following chart uses different methodologies for objectively showing the depth and trend of participation for intermediate- and long-term time frames.
- The Silver Cross Index (SCI) shows the percentage of SPX stocks on IT Trend Model BUY signals (20-EMA > 50-EMA)
- The Golden Cross Index (GCI) shows the percentage of SPX stocks on LT Trend Model BUY signals (50-EMA > 200-EMA)
Don't forget that as a "Diamonds" member, you have access to our GCI/SCI curated ChartList on DecisionPoint.com. You'll find it under "Members Only" links on the left side on the Blogs and Links Page.
Here is the current chart:
Full Disclosure: I'm 8% invested and 92% is in 'cash', meaning in money markets and readily available to trade with.
I'm required to disclose if I currently own a stock and/or may buy it within the next 72 hours.
Good Luck and Good Trading!
- Erin
"Technical Analysis is a windsock, not a crystal ball." - Carl Swenlin
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Watch the latest episode of DecisionPoint with Carl & Erin Swenlin on Mondays 7:00p EST or on the DecisionPoint playlist on the StockCharts TV YouTube channel here!
NOTE: The stocks reported herein are from mechanical trading model scans that are based upon moving average relationships, momentum and volume. DecisionPoint analysis is then applied to get five selections from the scans. The selections given should prompt readers to do a chart review using their own analysis process. This letter is not a call for a specific action to buy, sell or short any of the stocks provided. There are NO sure things or guaranteed returns on the daily selection of "Diamonds in the Rough."
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
For more links, go to DecisionPoint.com