The scans came through today with plenty of choices, maybe too many choices. It took me much longer to go through the review process, but I believe I have some good choices for you.
I didn't present Sunrun (RUN), but I wanted to. I didn't because I had already mentioned it on Friday and it is overbought. No doubt about that. Still I think there is a lot of upside potential. Be sure to take a look at that chart.
Energy made an appearance in today's scans and I picked out my favorite. It is running a little bit hot, but I liked the configuration and relative strength.
Another theme I noticed was Marine Transportation. I didn't have that many stocks from this area, but the charts look good so I selected one for today.
I recommend taking a look at all of the "Diamonds in the Rough" and the Runner-ups if you are looking to add to your portfolio right now. I need an Energy stock so I might just add today's PBF.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": HLIT, IMNM, PBF and TRMD.
Runner-ups: AVNS, PXD, EQT, SSTK, WFRD, SU, YY, MCW, RUN, PDFS, CEG and ASC.
RECORDING LINK (12/15/2023):
Topic: DecisionPoint Diamond Mine (12/15/2023) LIVE Trading Room
Passcode: December#15
REGISTRATION for 12/22/2023:
When: Dec 22, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (12/22/2023) LIVE Trading Room
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Here is the last recording from 12/18:
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.
Harmonic, Inc. (HLIT)
EARNINGS: 01/29/2024 (AMC)
Harmonic, Inc. engages in the development and sale of video delivery software, products, system solutions, and services. It operates through the Video and Cable Access segments. The Video segment sells video processing and production and playout services to cable operators, satellite and telecommunications pay-TV service providers, and broadcast and media companies. The Cable Access segment offers solutions to cable operators. The company was founded in June 1988 and is headquartered in San Jose, CA.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Price Channel and P&F Double Top Breakout.
HLIT is unchanged in after hours trading. This is a reversal candidate. The only thing left is for the 5/20/50-day EMAs to get back above the 200-day EMA. It had a tiny breakout today. The PMO turned up and triggered a Crossover BUY Signal above the zero line which suggests pure strength. The RSI is positive and not overbought. The OBV is rising to confirm the rally. Stochastics are above 80 now suggesting internal strength. I would like to see the industry group outperforming, but HLIT is outperforming the SPY so it passes my test. The stop is set at the 50-day EMA at 7.2% or $10.62.
I really like the weekly chart minus the StockCharts Technical Rank (SCTR) which is not in the hot zone* nor rising much. The weekly RSI is negative but just about ready to pop into positive territory. The weekly PMO is rising on a Crossover BUY Signal. If it can overcome resistance, I'm looking for a possible move up to $16.
*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.
Immunome Inc. (IMNM)
EARNINGS: 03/14/2024 (BMO)
Immunome, Inc. is a biopharmaceutical company, which engages in the discovery and development of antibody therapeutics products. It also focuses on oncology and infectious disease areas. The company was founded by Scott K. Dessain and Gregory P. Licholai on March 2, 2006 and is headquartered in Exton, PA.
Predefined Scans Triggered: New CCI Buy Signals and Entered Ichimoku Cloud.
IMNM is unchanged in after hours trading. The reason this one caught my eye was the breakout from the bullish falling wedge. I wish I'd seen this chart yesterday on the first hint of a breakout. The RSI is rising and is nowhere near overbought. The PMO just gave us a new Crossover BUY Signal. Stochastics are rising strongly toward 80 and relative strength is showing improvement for both the group and IMNM. Notice that the OBV is making a move higher as well as volume is pouring in. The stop is set arbitrarily at 7.4% or $7.52.
The weekly chart is mixed. I didn't annotate it, but we have rising bottoms and a flat price top. That is a bullish ascending wedge formation. The weekly RSI is positive, but the weekly PMO is still in decline. I do note that the SCTR is very near the hot zone. If price can reach overhead resistance it would be a 21%+ gain.
PBF Energy Inc. (PBF)
EARNINGS: 02/15/2024 (BMO)
PBF Energy, Inc. engages in the operation of a petroleum refinery and supplies unbranded transportation fuels, heating oil, petrochemical feed stocks, lubricants, and other petroleum products in the United States. It operates through the Refining and Logistics segments. The Refining segment involves refining crude oil and other feed stocks into petroleum products. The Logistics segment includes owning, leasing, operation, development, and acquisition of crude oil and refined petroleum products terminals, pipelines, storage facilities, and logistics assets. The company was founded on March 1, 2008 and is headquartered in Parsippany, NJ.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Keltner Channel, Moved Above Upper Price Channel and Entered Ichimoku Cloud.
PBF is up +0.21% in after hours trading. It had a giant rally day today that broke price above the prior congestion area. Price also pushed well past the 50-day EMA. The RSI is positive, rising and not overbought. The PMO just gave us a Crossover BUY Signal. This looks like new strength not diminishing weakness. I spot a positive divergence between OBV bottoms and price lows. Stochastics are rising strongly toward 80. Relative strength is on the rise for both the group and stock. I've set the stop beneath the 200-day EMA at 7.8% or $43.22.
The weekly chart is improving. The weekly RSI just moved into positive territory and the weekly PMO is beginning to decelerate in preparation for an upside reversal. The SCTR is rising strongly albeit it is not in the hot zone yet. If PBF can recapture prior 2023 highs, it would mean an over 20% gain.
Torm Plc (TRMD)
EARNINGS: 05/08/2024 (BMO)
TORM Plc engages in the business of transporting clean and dirty petroleum products. It operates under the Tanker and Marine Exhaust segments. The Tanker segment focuses on the transportation of refined oil products such as gasoline, jet fuel, and naphtha. The Marine Exhaust segment includes developing and producing advanced and green marine equipment. The company was founded by Ditlev E. Torm and Christian Schmiegelow in 1889 and is headquartered in London, the United Kingdom.
Predefined Scans Triggered: Bullish MACD Crossovers.
TRMD is up +0.27% in after hours trading. This one was a "Diamond in the Rough" back in September. After correcting, TRMD is now on its way back up to capture prior highs. The RSI is in positive territory and isn't overbought. The PMO has been rising and is now nearing a Crossover BUY Signal. Stochastics are very bullish and nearing territory above 80. The stop is set below the 50-day EMA at 6.2% or $27.91.
I'm not sure what is wrong with the weekly PMO on this chart, but what we do know is that the weekly PMO (10.13) is above its signal line (10.03). The weekly RSI looks good as it reverses higher in positive territory. The SCTR isn't in the hot zone, but it has reversed higher and is quite close to it. I would consider a 17% upside target around $34.82.
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 80% long, 0% short. I may add PBF this week.
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 3:00p 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