I had difficulty yesterday finding ETFs and it appears readers were mostly stumped on what to request on the BUY side for stocks and ETFs. With so few requests coming in, I had to add two of my own.
One request I'm not covering was Palantir (PLTR). I'm bearish on the market and on Technology. The chart was looking toppy so I opted not to present it.
I did find two requests that have promise even with a tough market environment ahead. My two also look bullish enough to present. Overall I would consider limiting exposure and building your watch lists.
Looking at after hours trading on Apple (AAPL) and Amazon (AMZN), AAPL is struggling (down -1.14%) while AMZN is doing fabulous (up +8.22%). Not sure what this will mean for the market, but Technology seems at a disadvantage.
Stay alert and make sure your stops are in order. Might not be a bad idea to book some profits as well.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": APA, KRG, LBRT and MDLZ.
RECORDING LINK (7/14/2023):
Topic: DecisionPoint Diamond Mine (7/14/2023) LIVE Trading Room
Passcode: July#14th
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When: Aug 4, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (8/4/2023) LIVE Trading Room
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Here is the last recording from 7/31:
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.
APA Corporation (APA)
EARNINGS: 08/02/2023 (AMC) ** Reported Yesterday **
APA Corp. explores for oil and natural gas through its subsidiaries. It produces oil and gas with operations in the United States, Egypt and the United Kingdom, and exploration activities offshore in Suriname. The company was founded in 1954 and is headquartered in Houston, TX.
Predefined Scans Triggered: Elder Bar turned Green, New CCI Buy Signals, Moved Above Upper Keltner Channel, Moved Above Upper Price Channel, Parabolic SAR Buy Signals, P&F Double Top Breakout and P&F Triple Top Breakout.
APA is up +0.07% in after hours trading. Today saw a very strong breakout from overhead resistance. There was a PMO "Surge" above the signal line. The OBV is currently confirming the rally and we saw high volume on the breakout. Stochastics are above 80 and oscillating. Relative strength is improving for both the group and APA. The stop is set at 7.9% or $38.36.
I love the weekly chart. The weekly RSI is positive and not overbought and the weekly PMO is on a new Crossover BUY Signal. There is a bullish double-bottom pattern on price. The StockCharts Technical Rank (SCTR) just entered the hot zone*.
*If a stock/ETF 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.
Kite Realty Group Trust (KRG)
EARNINGS: 11/01/2023 (AMC)
Kite Realty Group Trust operates as a real estate investment trust. It engages in the ownership, operation, acquisition, development, and redevelopment of neighborhood and community shopping centers in selected markets in the United States. The company was founded on August 16, 2004 and is headquartered in Indianapolis, IN.
Predefined Scans Triggered: P&F Spread Triple Top Breakout and P&F Double Top Breakout.
KRG is unchanged in after hours trading. This is one of my selections. I will admit that KRG is overbought based on the RSI and even the location of the PMO. However, we saw an excellent breakout today and the PMO is about to trigger another Crossover BUY Signal. While an overbought RSI doesn't bode well, I do note that it remained overbought for nearly two weeks in July. Volume is coming in strong. Stochastics are rising strongly. The group is underperforming the market which is also somewhat concerning, but KRG has a great history of outperforming the group. It is also really picking up against the SPY. The stop was easy to set below support at 6.3% or $22.48.
Price has broken from a long-term trading channel. The weekly RSI is positive and the weekly PMO is on a Crossover BUY Signal. Neither are overbought. The SCTR is back in the hot zone. This could be considered an intermediate-term investment.
Liberty Oilfield Services Inc. (LBRT)
EARNINGS: 10/18/2023 (AMC)
Liberty Energy, Inc. engages in the provision of hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. The company was founded on December 21, 2016 and is headquartered in Denver, CO.
Predefined Scans Triggered: P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
LBRT is unchanged in after hours trading. It comes to us from the healthy Energy (XLE) sector. Price broke out slightly from overhead resistance. It's a tiny breakout, but a breakout nonetheless. The RSI is in positive territory and isn't overbought just yet. The PMO is definitely overbought, but still rising. If this rally continues steadily or if price consolidates, that could bring the PMO out of overbought territory. I also note a negative divergence with the OBV. That could be changed if more volume comes in on this breakout. Stochastics are strong and relative strength studies are very bullish. I've set the stop beneath the 20-day EMA at 6.3% or $15.54.
More overhead resistance is arriving at the late 2022 top, but I'm looking for a test of the 2022 high. The weekly RSI is positive and the weekly PMO is on a relatively new Crossover BUY Signal. The SCTR is in the hot zone. This could be considered an intermediate-term investment.
Mondelez International, Inc. (MDLZ)
EARNINGS: 10/31/2023 (AMC)
Mondelez International, Inc. engages in the manufacture and marketing of snack food and beverage products. It operates through the following geographical segments: Latin America, Asia, Middle East, and Africa, Europe, and North America. Its products include beverages, biscuits, chocolate, gum and candy, cheese and grocery, and meals. Its brands include, but are not limited to, Nabisco, Oreo, and LU biscuits, Cadbury, Cadbury Dairy Milk, and Milka chocolates, and Trident gum. The company was founded by James Lewis Kraft in 1903 is headquartered in Chicago, IL.
Predefined Scans Triggered: Hollow Red Candles.
MDLZ is down -0.41% in after hours trading. The one predefined scan that triggered was "Hollow Red Candles". These are bullish patterns and suggest upside tomorrow. Price broke from an intermediate-term trading channel, but hasn't done much. Based on the positive indicators, we should look for a continuation of the rally that brought price above resistance. The RSI is positive and the PMO is rising and is far from overbought. The OBV is confirming the rally. Stochastics turned up in positive territory and are rising. The group is performing alright, but I would look for the group to begin outperforming should the SPY continue to lose ground because this is a defensive group and sector. MDLZ is outperforming the group already.
The weekly chart is bullish, but the weekly PMO hasn't quite turned up yet so I'd keep this a short-term trade. The weekly RSI is positive and not overbought. The PMO is at least beginning to turn back up. I like that the SCTR has entered the hot zone above 70.
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 20% long, 0% short. Considering all three of these hedges.
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:
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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