While I didn't receive too many requests today, the ones I did receive could've all been selected. Pickings are good right now as the market rallies strongly. While I didn't use any of my scans today, I did note that I had a pretty good amount of results available on all of them. All of this is indicative of a strong bull market.
Don't forget that tomorrow is the Diamond Mine trading room. You can register below or use the recording/download link afterward. Recordings are only available for two weeks so download it in a timely manner.
For those unfamiliar, in the Diamond Mine I do a complete market overview. I then tease out a Sector to Watch and an Industry Group to Watch. Finally, I determine a few symbols of interest within that Industry Group to Watch. I then cover symbol requests until the end of the meeting, leaving a little bit of time at the end to run a scan and find more symbols. The Friday Recap gives you a light overview of what occurred in the trading room that morning.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": IDYA, LYV and WRK.
Other Requests: LABU, TDOC, ARES, CABA, ESRT, LNTH, MIRM and TTMI.
RECORDING & DOWNLOAD LINK (12/8/2023):
Topic: DecisionPoint Diamond Mine (12/8/2023) LIVE Trading Room
Passcode: December#8
REGISTRATION for 12/15/2023:
When: Dec 15, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (12/15/2023) 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 12/4, no recording on 12/11:
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.
IDEAYA Biosciences, Inc. (IDYA)
EARNINGS: 03/05/2024 (BMO)
IDEAYA Biosciences, Inc. engages in the research and development of oncology-focused precision medicine. The firm focuses on the targeted therapeutics for patients selected using molecular diagnostics. Its product candidate, IDE196, is a protein kinase C inhibitor for genetically-defined cancers having GNAQ or GNA11 gene mutations. The company was founded by Yujiro S. Hata and Jeffrey Hager in June 2015 and is headquartered in South San Francisco, CA.
Predefined Scans Triggered: Moved Above Upper Keltner Channel, New 52-week Highs, Ichimoku Cloud Turned Green, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
IDYA is unchanged in after hours trading. Today it broke out to new 52-week highs. It's been in a nice rising trend. The RSI is positive and not quite overbought yet. One of the reasons I picked it was the whipsaw PMO Crossover BUY Signal. This move is just getting started based on the PMO. Stochastics are above 80 and relative strength is rising for the group and IDYA against the SPY. The stop is set half way down into the prior trading range at 7.7% or $31.58.
The weekly chart shows us that this breakout was also to new all-time highs. The main problem with the weekly chart is the weekly RSI is overbought. Past that it looks great. There is a new PMO Crossover BUY Signal and the StockCharts Technical Rank (SCTR) is well within the hot zone* above 70. Consider a 17% upside target to start that would take price to $40.04.
*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.
Live Nation Entertainment, Inc. (LYV)
EARNINGS: 02/22/2024 (AMC)
Live Nation Entertainment, Inc. operates as an entertainment company. The firm engages in producing, marketing, and selling live concerts for artists via its global concert pipe. It operates through the following segments: Concerts, Sponsorship and Advertising, and Ticketing. The Concerts segment is involved in the promotion of live music events in owned or operated venues and in rented third-party venues. The Sponsorship and Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national, and local sponsorships and placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related content, and ads across its distribution network of venues, events, and websites. The Ticketing segment is involved in the management of the global ticketing operations, including providing ticketing software and services to clients, and consumers with a marketplace, both online and mobile, for tickets and event information. The Ticketing segment also operates the firm's primary ticketing website, www.ticketmaster.com. The company was founded in 1996 and is headquartered in Beverly Hills, CA.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Keltner Channel, Stocks in a New Uptrend (ADX), Moved Above Upper Bollinger Band, Moved Above Upper Price Channel and P&F Double Top Breakout.
LYV is unchanged in after hours trading. Today's breakout was impressive and suggests to me we should see follow through. This is especially so given the positive indicators. The RSI is positive and not yet overbought. The PMO is rising on a Crossover BUY Signal. Stochastics are now above 80. Relative strength is about even for the group, but LYV is outperforming both the group and the SPY in a big way. The stop is set around the 20-day EMA at 7.1% or $86.46.
The weekly chart is shaping up nicely. The only issue is the SCTR which isn't in the hot zone. However, it is rising strongly. The weekly RSI is positive and not overbought. The weekly PMO is on a newish Crossover BUY Signal. I've marked upside potential at about 38% should it reach all-time highs again.
WestRock Co. (WRK)
EARNINGS: 02/01/2024 (BMO)
WestRock Co. engages in the provision of fiber-based paper and packaging solutions. It operates through the following segments: Corrugated Packaging, Consumer Packaging, Global Paper, and Distribution. The Corrugated Packaging segment consists of the sale of containers and other products including displays. The Consumer Packaging segment involves the packaging products such as folding cartons, interior partitions, inserts, and labels. The Global Paper segment focuses on commercial paper operations and generates its revenues primarily from the sale of containerboard, paperboard, and specialty grades to external customers. The Distribution segment distributes packaging materials and other specialty packaging products, including stretch film, void fill, carton sealing tape, and other specialty tapes. The company was founded on March 6, 2015 and is headquartered in Atlanta, GA.
Predefined Scans Triggered: New CCI Buy Signals, New 52-week Highs, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
WRK is down -0.90% in after hours trading. We have a confirmed breakout from a bullish flag formation. A flag formation tells us that the next leg up should be the height of the flagpole. That would put price at $48, but I think it can go further. The RSI is overbought right now so we could see some consolidation on this breakout, but ultimately I see it moving higher. The PMO has surged above the signal line and Stochastics are above 80. Relative strength is improving across the board. The stop is set below the 20-day EMA at 7.5% or $39.91.
The weekly chart also suggests this stock is overbought right now, but the weekly PMO is not yet overbought and is rising. The SCTR is also at the top of the hot zone. Over time, I would expect to see all-time highs tested.
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'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 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