I can see that readers are having an easier time finding stocks/ETFs than previously. I had a healthy number of requests to review today. Truth be told, every request had merit! Be sure and look at the list of other requests for more stock ideas.
I expanded my portfolio exposure to 40% today. I opted to take a small position in a number of stocks. I will likely ease further into the market tomorrow. I don't like to go "all in" at once, but know that I do plan on expanding exposure up to 65% or more depending on market technicals. I think we will be afforded an opportunity to get in on a decline or two. We have quite a few stocks to select from this week with "Diamonds in the Rough" and 'runners-up'.
I'm about ready to beta test our new DP Scan Alert System. You'll be receiving an email with details next week. If you haven't signed up to be a beta tester and would like to be one, send me an email.
Tomorrow is the Diamond Mine trading room. If you want to attend live, be sure and register below. The recording link will be in tomorrow's Diamonds Recap report.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": ADBE, ARRY, DASH and TGLS.
Other requests: AIQ, MA, ACEL, ELF, ACN, TAN, TARS, NOW, ORCL, VRT, MAMA, JNPR, MU, CRNX and AA.
RECORDING LINK (8/25/2023):
Topic: DecisionPoint Diamond Mine (8/25/2023) LIVE Trading Room
Passcode: August#25
REGISTRATION for 9/1/2023:
When: Sep 1, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (9/1/2023) 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 8/28:
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.
Adobe Systems, Inc. (ADBE)
EARNINGS: 09/14/2023 (AMC)
Adobe, Inc. engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat. The Digital Experience segment provides solutions, including analytics, social marketing, targeting, media optimization, digital experience management, and cross-channel campaign management, as well as premium video delivery and monetization. The Publishing and Advertising segment includes legacy products and services for eLearning solutions, technical document publishing, web application development, and high-end printing. The company was founded by Charles M. Geschke and John E. Warnock in December 1982 and is headquartered in San Jose, CA.
Predefined Scans Triggered: Moved Above Upper Keltner Channel, New 52-week Highs and P&F Double Top Breakout.
ADBE is down -0.01% in after hours trading. I like today's strong breakout on volume. Price has formed a nice cup shaped base. The RSI is positive and we have a new PMO Crossover BUY Signal today. Stochastics are above 80 and rising. Relative strength is improving across the board so we know we have a leader within the already outperforming Software group. The stop is set below the 20-day EMA a little more than halfway down the prior trading range at 7.7% or $516.27.
Other than an overbought weekly RSI, the weekly chart looks great. We know that overbought conditions can persist when a stock is in a bull market configuration so I'm forgiving that. This is lined up as an intermediate-term investment given the weekly PMO is surging above the signal line and the StockCharts Technical Rank (SCTR) is at the top of the hot zone*. Upside potential is over 25% should it recapture 2021 highs. It's not out of the realm of possibility.
*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.
Array Technologies Inc. (ARRY)
EARNINGS: 11/07/2023 (AMC)
Array Technologies, Inc. manufactures ground-mounting systems used in solar energy projects. The company sells its products to engineering, procurement and construction firms that build solar energy projects and to large solar developers, independent power producers and utilities, master supply agreements or multi-year procurement contracts. It has offices in Europe, Central America, and Australia. The company's products include DuraTrack and SmarTrack. Array Technologies was founded by Ronald P. Corio in 1989 and is headquartered in Albuquerque, NM.
Predefined Scans Triggered: New 52-week Highs and P&F Double Top Breakout.
ARRY is unchanged in after hours trading. The Solar ETF (TAN) is beginning to look bullish so I decided to pick this reader request as it is showing incredible leadership within the group based on relative performance. Price did close beneath resistance today and formed a long wick which could mean a decline tomorrow, enabling you to get in at a better price. This rally is almost straight up and down and could use a pullback. However, the RSI is still not yet overbought. The PMO is definitely overbought but rising so strongly, I imagine it will continue this way given the strong bull market this stock is in. Stochastics did top but are above 80. The stop is set below the prior August high at 7.2% or $23.07.
The weekly chart is excellent and does imply this could be considered an intermediate-term investment given the new weekly PMO BUY Signal that is on tap for tomorrow (weekly indicators don't go 'final' until after the close on Friday). The price breakout is extremely encouraging especially coming alongside a positive weekly RSI and SCTR at the top of the hot zone. Upside potential is quite high.
DoorDash Inc. (DASH)
EARNINGS: 11/02/2023 (AMC)
DoorDash, Inc. engages in the design, development, and operation of a food delivery and logistics platform. It serves consumers in the United States, Canada, and Australia. The company was founded by Andy Fang, Tony Xu, Stanley Tang, and Evan Moore on January 12, 2013, and is headquartered in San Francisco, CA.
Predefined Scans Triggered: New CCI Buy Signals and P&F Low Pole.
DASH is down -0.36% in after hours trading. It has enjoyed a rally alongside the market this week. I see a rather large bull flag on this chart and with the breakout from the 'flag' portion (which is a bullish falling wedge), the pattern has been confirmed. It suggests that we will see a rally the height of the flagpole. The RSI is positive and the PMO is nearing a Crossover BUY Signal. Stochastics are above 80 and rising. The group has been outperforming in the longer term, it's been performing in line with the SPY this past month. The stop could be set below support so I picked a stop halfway down the trading range at 7.8% or $77.56.
This bounce is actually coming off very strong support on the weekly chart. The weekly RSI is positive and rising, the weekly PMO is surging above the signal line and the SCTR is well within the hot zone. This could be considered for the intermediate-term timeframe.
Tecnoglass Inc. (TGLS)
EARNINGS: 11/02/2023 (BMO)
Tecnoglass, Inc. is a holding company, which engages in the design, manufacturing, distribution, marketing, and installation of architectural glass, windows and associated aluminum products for the global commercial and residential construction market. It operates through the following geographical segments: Colombia, United States, Panama, and Other. The company was founded in 1994 and is headquartered in Miami, FL.
Predefined Scans Triggered: None.
TGLS is up +0.54% in after hours trading. Another stock with a strong rally under its belt. The RSI has moved back above net neutral (50) and there is a new PMO Crossover BUY Signal. Volume is definitely coming in. Stochastics are above 80 and rising. The group is traveling in line with the SPY, but TGLS is outperforming both. Home Builders are seeing a nice rally so I would expect TGLS will continue this one. I've set the stop below support at 7.9% or $35.89.
This is a nice rebound after a huge decline. The weekly chart may be improving as far as the rising weekly RSI and decelerating weekly PMO, but given the mediocre SCTR, I would consider this a short-term horizon investment.
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 40% long, 0% short. All four of today's Diamonds in the Rough are possibilities for tomorrow's trading day.
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