DecisionPoint scans brought some interesting symbols to the table. I actually had a 'selection' to choose from. It wasn't a large selection, but it was enough to pull out a theme and offer you some good looking "Diamonds in the Rough".
I noted in the DecisionPoint Trading Room on Monday that the Healthcare sector (XLV) had formed a bearish double top and looked particularly bearish. Well that didn't prevent the scans from returning plenty of stocks within the sector. In particular, Pharma was a theme with scattered Biotechs. I feel I've offered you plenty of Biotechs the last few weeks. I do have a few listed in the "Runners-up" list.
I had Silver (SLV) come up in today's scan and could've easily included it (I still may include it tomorrow for ETF Day). Gold isn't doing so great, but the Silver chart is looking very interesting. Our ultrashort Silver position (ZSL) should be turned off from 8/2. I don't give sell signals, but I felt I should clarify this one.
I had someone ask me whether the new Scan Alert service was still on the way. It is definitely going to happen but we have so many back end issues to resolve, I can't easily provide the service yet. I'm looking for alternative ways to deliver the symbols as currently I could only provide the symbols without links to charts. I'm thinking that wouldn't be too useful to subscribers. If you are interested in being a beta tester for the new service, send me an email and I'll put you on the list.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": BLCO, COLL and VNT.
Runners-up: AXSM, HOLX, NOC, SLV, SUPN, EXPO, REPL and MRNA.
RECORDING LINK (8/18/2023):
Topic: DecisionPoint Diamond Mine (8/18/2023) LIVE Trading Room
Passcode: August#18
REGISTRATION for 8/25/2023:
When: Aug 25, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (8/25/2023) 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 8/21:
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.
Bausch & Lomb Corp. (BLCO)
EARNINGS: 11/01/2023 (BMO)
Bausch + Lomb Corp. develops, manufactures, and markets eye health products. It offers over-the-counter supplements, eye care products, ophthalmic pharmaceuticals, contact lenses, lens care, ophthalmic surgical devices, and instruments. The company operates its business through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals and Surgical. The Vision Care/Consumer Health Care segment includes both contact lens and consumer eye care businesses. The Ophthalmic Pharmaceuticals segment consists of a broad line of proprietary pharmaceutical products for post-operative treatments and treatments for a number of eye conditions, such as glaucoma, eye inflammation, ocular hypertension, dry eyes and retinal diseases. The Surgical segment consists of medical device equipment, consumables and instrumental tools and technologies for the treatment of corneal, cataracts, and vitreous and retinal eye conditions, and includes IOLs and delivery systems, phacoemulsification equipment and other surgical instruments and devices necessary for cataract surgery. Bausch + Lomb was founded by John Jacob Bausch and Henry Lomb in 1853 and is headquartered in Vaughan, Canada.
Predefined Scans Triggered: Entered Ichimoku Cloud and Shooting Star.
BLCO is unchanged in after hours trading. I see that this one was a pick at the end of March this year. While it didn't do spectacularly after being picked, it did see a nice bull market move. The stop was never hit. I like how the chart is shaping up again. Price turned back up before actually testing support at the 200-day EMA and $17.50 level. That is a good sign. The RSI is positive now and the PMO just triggered a Crossover BUY Signal today. The OBV is confirming the rally. Stochastics are now above net neutral (50) and rising. Relative strength for the group has been pretty good and it needs to be given the underperformance of the SPY. BLCO is a strong leader within the group right now so we will look for this winner to keep on winning. The stop is set at about the 200-day EMA at 7.9% or $17.90.
The weekly chart shows that BLCO is indeed a strong performer. The weekly RSI has stayed positive most of the year and currently is rising and not overbought. I don't like the weekly PMO but there hasn't been enough data to trust what it is doing. Still, I would label this a short-term trade due to its direction. The StockCharts Technical Rank (SCTR) is in 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.
Collegium Pharmaceutical, Inc. (COLL)
EARNINGS: 11/02/2023 (AMC)
Collegium Pharmaceutical, Inc. is a pharmaceutical company, which engages in development and planning to commercialize next generation, abuse-deterrent products for the treatment of patients suffering from chronic pain and other diseases. Its products include Xtampza ER, Nucynta ER and Nucynta IR, Belbuca, and Symproic. The company was founded by Michael Thomas Heffernan in April 2002 and is headquartered in Stoughton, MA.
Predefined Scans Triggered: P&F Double Top Breakout.
COLL is unchanged in after hours trading. Price has broken from a short-term declining trend and has pushed back above resistance at $24. I like that the EMAs are configured bullishly with the shortest duration on top and longest duration on the bottom. That sets up a bullish bias. The RSI is positive and not overbought. The PMO looks as if it had a surge after turning down on the short-term decline. Stochastics have been in positive territory during the pullback and are rising again suggesting internal strength. It has been performing better than the SPY even on its decline (tells you how bad the SPY has been performing). It is beginning to outperform the group now. The stop is set at the 50-day EMA at 5.8% or $22.87.
I like how the weekly chart is shaping up. Price reversed off strong support at the mid-2022 high and has plenty of upside potential. The weekly RSI is positive and the weekly PMO is nearing a Crossover BUY Signal. The SCTR is in the hot zone above 70. This could be considered a more intermediate-term investment.
Vontier Corporation (VNT)
EARNINGS: 11/02/2023 (BMO)
Vontier Corp. engages in the provision of critical technical equipment, components, software and services for manufacturing, and repair and servicing in the mobility infrastructure industry worldwide. It supplies solutions, spanning advanced environmental sensors, fueling equipment, field payment hardware, remote management and workflow software, vehicle tracking and fleet management software solutions for traffic light control and vehicle mechanics and technicians equipment. The company was founded in 2019 and is headquartered in Raleigh, NC.
Predefined Scans Triggered: Elder Bar Turned Green, Bullish MACD Crossovers, Parabolic SAR Buy Signals and Entered Ichimoku Cloud.
VNT is up +1.96% in after hours trading. I liked this chart right away as it shows brand new upside momentum and a nice reversal on support. I don't consider it a 'bottom fish' as the 50-day EMA is above the 200-day EMA. The short-term declining trend has been broken on this two days of strong rally. The RSI isn't yet above 50, but it is on the way. The PMO is on its way up in near-term oversold territory (I say 'near-term' because the actual oversold level would be -6 given the upper bound was previously +6). Stochastics are below 50, but rising quickly. The group is not impressive as far as relative strength, but VNT is outperforming the group and the SPY. I've set the stop lower than price support at this month's low. I opted to set it below the March/April highs at 7.6% or $27.78.
I didn't annotate the flat formation on this chart, but I'm sure you can see it. Price is bouncing off strong support at the 2022 mid-year high. The weekly RSI is positive and the SCTR has been in the hot zone most of the year. The weekly PMO does look like it's decelerating, but until it turns up, I'd consider this a short-term trade. Upside potential is over 23% if it gets to an all-time high.
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 10% long, 8% 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