The scans were unanimous for today's theme. There were plenty of ETFs that cover this area of the market. I will reveal today's theme shortly.
I want to go over how my vacation will work now that it is upon us. DP Diamonds will not be published the next two weeks. This week I will hold the Diamond Mine trading room Friday, but that's it. Then I'm on vacation so no Recap will occur this week. By the time the market closes, I'll be on my way to the airport.
The DP Alert will continue as usual. Carl will be taking care of it while I am gone, but comments, etc will probably be abbreviated. I will be checking customer service emails, but response times will vary.
Back to today's theme! I had a plethora of international ETFs hit nearly every scan. I've chosen two, but have included others that I like in the "Runner-ups" list. They all had spectacular days so you may be able to take advantage on possible pullbacks. The final ETF is Copper (CPER).
If you have any questions about my time off, please email me. I will be adding two weeks to every Diamonds subscription as of 7/28.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CPER, EWL and PIN.
Runner-ups: CQQQ, EIDO, EWD, EWS, EWC, IBB, TAN and XT.
** JULY VACATION **
I will be in Europe 7/14 - 7/28 so there will not be any Diamonds reports or trading rooms during that time. I will hold an abbreviated Diamond Mine on July 14th, no Recap that day. All subscribers with active subscriptions on 7/28 will be compensated with two weeks added to their renewal date.
RECORDING LINK (7/7/2023):
Topic: DecisionPoint Diamond Mine (7/7/2023) LIVE Trading Room
Passcode: July@7th
REGISTRATION for 7/14/2023:
When: Jul 14, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (7/14/2023) LIVE Trading Room
Register in advance for this webinar HERE
After registering, you will receive a confirmation email containing information about joining the webinar.
Here is the last recording from 7/10:
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.
United States Copper Fund (CPER)
EARNINGS: N/A
CPER tracks a rules-based index of copper futures contracts selected based on the shape of the copper futures curve. Click HERE for more information.
Predefined Scans Triggered: Elder Bar Turned Green, Moved Above Ichimoku Cloud and Parabolic SAR Buy Signals.
CPER is up +0.37% in after hours trading. We have a reverse head and shoulders forming. If it is confirmed with a move above the blue dotted neckline, the minimum upside target would take price to the January high. I like the new PMO Crossover BUY Signal combined with a positive RSI that is not at all overbought. Stochastics just moved above net neutral (50) and relative strength is beginning to show. The stop doesn't have to be deep, it could even be tighter than what I've annotated if you wish. I've listed it at 5.2% or $22.53.
Other than the dismal StockCharts Technical Rank (SCTR) which is in the basement and well below the hot zone* above 70. The weekly RSI just moved into positive territory and the weekly PMO is turning back up. If it gets to the January high, it would be about an 11% gain, but if it can breakout there and get to 2022 highs, the target would be over 25%.
*If a stock is in the "hot zone" above 70, it implies that it is stronger than 70% of its universe (large-, mid-, small-caps and ETFs) primarily in the intermediate to long terms.
iShares MSCI Switzerland Capped ETF (EWL)
EARNINGS: N/A
EWL tracks a market-cap-weighted index of Swiss stocks. It captures 85% of the publicly available market, excluding small-caps. Click HERE for more information.
Predefined Scans Triggered: New CCI Buy Signals, Bullish MACD Crossovers, Moved Above Ichimoku Cloud, Parabolic SAR Buy Signals, P&F Double Top Breakout and P&F Bearish Signal Reversal.
EWL is down -0.21% in after hours trading. One of the reasons I picked this ETF was the distance between the 50-day EMA and 200-day EMA. Ultimately this implies EWL is in a bull market configuration. The 5-day EMA just popped above the 20-day EMA for a ST Trend Model BUY Signal. The PMO just triggered its own Crossover BUY Signal. The RSI is positive, rising and not overbought. Stochastics look bullish as they rise vertically. Notice that relative strength is angling higher. The stop can be set thinly at 4.4% or $44.55.
I like the bull flag on the weekly chart, particularly since it is being confirmed with this week's breakout. The weekly RSI is positive and rising. The weekly PMO is reversing out of a SELL signal. The SCTR is outside of the hot zone, but it is rising strongly toward it. Since it is already near all-time highs, consider an upside target of 16% or $54.06.
Invesco India ETF (PIN)
EARNINGS: N/A
PIN tracks an index of India-listed stocks, screened for yield and quality and weighted by market cap. Click HERE for more information.
Predefined Scans Triggered: New 52-week Highs, Moved Above Upper Bollinger Band and Moved Above Upper Price Channel.
PIN is down -2.27% in after hours trading so a better entry should be available tomorrow. Here we have another bullish flag formation. It was confirmed with yesterday's breakout. This could be filed under "winners that keep on winning". The EMAs are configured very positively and we see essentially two PMO Surges. Because this has been a consistent winner, the RSI is definitely overbought. Stochastics are strong above 80. This could be in for a pullback soon to form another bull flag. I wish I'd seen this chart sooner. The stop is set at 5.1% or $22.17.
The weekly chart is very positive and certainly could be considered an intermediate-term investment. The weekly RSI is positive and the weekly PMO is now in positive territory on a Crossover BUY Signal. The SCTR is in the hot zone above 70. Since it is close to all-time highs, consider an upside target around 16% or $27.10.
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 50% long, 0% 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
(c) Copyright 2023 DecisionPoint.com
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:
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
For more links, go to DecisionPoint.com