After running my scans today there was one group that really stood out. Interestingly, I recall getting one of the symbols as a request during yesterday's DecisionPoint Trading Room. The strange thing is that it is barely holding positive relative strength against the SPY. Nonetheless, I had FOUR of these stocks come up and it is not a large industry group. Marine Transportation was prominent. I try not to present three stocks from the same group, but I was tempted today.
I included a Steel company today, Olympic Steel (ZEUS). The group looks like it may be ready to outperform more than it already is. Might want to keep an eye on your favorites in this group.
We're in the process of putting together a DP Scan Alert service. It is for those who want more symbols brought to their attention or are more "do-it-yourself". At the end of trading, we will run select Diamond scans as well as PMO Crossover scans and publish the results with links to the charts in a separate blog. We will also include Silver Crosses (20/50-EMA crossover) and Golden Crosses (50/200-EMA crossover) for the SP500 and Nasdaq 100. No commentary, just the scan results. Sound interesting? I hope so!
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": FRO, MCFT and ZEUS.
Runner-ups: DHT, INSW, TNP, ACAD, ATKR and VNT.
** JULY VACATION **
I will be in Europe 7/14 - 7/27 so there will not be any Diamonds reports or trading rooms during that time. All subscribers with active subscriptions on 7/27 will be compensated with two weeks added to their renewal date.
RECORDING LINK (4/14/2023):
Topic: DecisionPoint Diamond Mine (4/14/2023) LIVE Trading Room
Passcode: April@14th
REGISTRATION for 4/21/2023:
When: Apr 21, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (4/21/2023) LIVE Trading Room
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Here is the last recording (4/10):
Welcome to DecisionPoint 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.
Stop levels are all rounded down.
Frontline Ltd. (FRO)
EARNINGS: 05/31/2023 (BMO)
Frontline Plc is an international shipping company, which engages in the ownership and operation of oil and product tankers. It also offers the seaborne transportation of crude oil and oil products. The company was founded in 1985 and is headquartered in Limmasol, Cyprus.
Predefined Scans Triggered: None.
FRO is up +0.64% in after hours trading. Price is breaking out of a bullish falling wedge. The RSI is positive, rising and not overbought. The OBV has a positive divergence with price lows. The PMO is about to trigger a Crossover BUY Signal above the zero line. Stochastics are above 80 now. As noted in the opening, the group isn't performing particularly well against the SPY, but this stock and the other three I mentioned (DHT, INSW and TNP) are showing improved relative strength against the group and the SPY. The stop is set as close to gap support as I could get without it being too deep. It is set at 7.7% or $15.76.
The weekly chart had only one blemish and that is the weekly PMO which is on a SELL signal. However, it is already pulling up for a possible whipsaw BUY signal. The weekly RSI has been holding above net neutral (50) and the StockCharts Technical Rank (SCTR) has been in the "hot zone" above 70 since the beginning of 2022. This is a strong stock. An upside target of 17% would put price at $19.98.
*We call it the "hot zone" because it implies that the stock/ETF is in the top 30% of its "universe" (large-, mid-, small-caps and ETFs) as far as trend and condition, particularly in the intermediate and long terms.
MCBC Holdings, Inc. (MCFT)
EARNINGS: 05/10/2023 (BMO)
Mastercraft Boat Holdings, Inc. engages in the designing, manufacturing, and selling of boats. It operates through the following segments: MasterCraft, Crest, NauticStar, and Aviara. The MasterCraft segment offers recreational performance boats used for water skiing, wakeboarding, and wake surfing activities and general recreational boating under product brands, such as MasterCraft. The Crest segment produces pontoon boats at its Owosso, Michigan facility, which are used for general recreational boating. The NauticStar segment produces boats at its Amory, Mississippi facility, which are used for saltwater fishing and general recreational boating. The Aviara segment consists of the Aviara brand which manufactures luxury day boats. The company was founded in 1968 and is headquartered in Vonore, TN.
Predefined Scans Triggered: P&F Double Bottom Breakout.
MCFT is up +1.16% in after hours trading. You may recall this industry group was on the radar a week ago for Diamonds. Price is breaking out of a bullish falling wedge and overcame resistance at the 20-day EMA--next up is the 50-day EMA. The RSI is negative, but rising and should be above net neutral (50) on the next rally. The PMO has begun to rise and Stochastics are rising above net neutral (50). Relative strength studies are excellent. We even have another positive OBV divergence. The stop is set beneath support at 7.9% or $27.76.
The weekly RSI is back in positive territory and the PMO, although on a SELL signal is turning back up for a possible whipsaw BUY signal. The SCTR is a very strong 87.5%.
Olympic Steel, Inc. (ZEUS)
EARNINGS: 05/04/2023 (AMC)
Olympic Steel, Inc. engages in the processing, sale, and distribution of metal products. It operates through the following segments: Carbon Flat Products, Specialty Metals Flat Products, and Tubular and Pipe Products. The Carbon Flat Products segment includes large volumes of processed carbon and coated flat-rolled sheet, coil and plate products, and fabricated parts. The Specialty Metals Flat Products segment consists of processed aluminum and stainless flat-rolled sheet and coil products, flat bar products, and fabricated parts. The Tubular and Pipe Products segment covers metal tubing, pipes, bars, valves, and fittings and fabricated pressure parts. The company was founded by Sol Siegal and Sam Sigel in 1954 and is headquartered in Highland Hills, OH.
Predefined Scans Triggered: New CCI Buy Signals, Stocks in a New Uptrend (Aroon) and Moved Above Upper Price Channel.
ZEUS is unchanged in after hours trading. Price just broke out above overhead resistance today. The RSI is safely within positive territory. The PMO is about to generate a Crossover BUY Signal. The OBV is rising and thus confirming the current rising trend. Stochastics are above 80. The group hasn't broken to new relative highs, but we can see that ZEUS is a solid performer against the group and the SPY. The stop is set at 7.7% or $49.20.
The weekly RSI is positive and not overbought. The weekly PMO is accelerating its move higher. The SCTR couldn't be much higher. I think there is more upside and it would take price above those all-time highs. Consider an upside target around 17% or $62.37.
Don't forget, on Thursdays I look at reader-requested symbols, click HERE to send 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 am 30% long, 2% short.
I'm required to disclose if I currently own a stock I mention and/or may buy/short it within the next 72 hours.
"Technical Analysis is a windsock, not a crystal ball." - Carl Swenlin
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Watch the latest episode of DecisionPoint Trading Room 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."
Regarding BUY/SELL Signals: The signal status reported herein is based upon mechanical trading model signals and crossovers. They define the implied bias of the price index/stock based upon moving average relationships and momentum, but they do not necessarily call for a specific action. They are information flags that should prompt chart review. Further, they do not call for continuous buying or selling during the life of the signal. For example, a BUY signal will probably (but not necessarily) return the best results if action is taken soon after the signal is generated. Additional opportunities for buying may be found as price zigzags higher, but the trader must look for optimum entry points. Conversely, exit points to preserve gains (or minimize losses) may be evident before the model mechanically closes the signal.
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