It was a prosperous week for "Diamonds in the Rough". We had only one position showing a loss out of ten and we outperformed the SPY by 2.85%. Tuesday's picks showed the one loss but other three finished up 7.95%, 15.5% and 8.13%.
The big winner was Immunome Inc (IMNM) which was up 15.5% since Tuesday. The"Dud" was PBF Energy (PBF) which was of course the only "Diamond in the Rough" that I bought this week. We'll talk more about its chart, but know that I think the position is still viable.
Picking the Sector to Watch was fairly easy after the close. In the Diamond Mine trading room this morning, I was torn between Healthcare (XLV) and Materials (XLB). Turned out that XLB turned very overbought to finish the week so I decided to go with the breakout in Healthcare. I feel less certain about January and this is a defensive sector that could see good rotation.
The Industry Group to Watch was between Medical Supplies and Biotechnology. I love the Biotechs when Healthcare is performing well. There are many opportunities there.
I didn't pick XLB, but in the trading room, I did pick out an Industry Group to Watch within, Specialty Chemicals (Aluminum looks good too) with the following symbols looking interesting: DD, IFF, CF and SMG.
I didn't have time to run a scan at the end of the program, but we all decided in the trading room that we need to make time for that so I'll be adjusting my timing to leave time.
Have a great weekend and especially have a Merry Christmas! I'll see you next week!
Good Luck & Good Trading,
Erin
RECORDING & DOWNLOAD LINK (12/22/2023):
Topic: DecisionPoint Diamond Mine (12/22/2023) LIVE Trading Room
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When: Dec 29, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (12/29/2023) LIVE Trading Room
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Our latest DecisionPoint Trading Room recording (12/18, no recordings for 12/25 or 1/1):
A few items about the spreadsheet: I've put on the spreadsheet whether the RSI is positive (green) or negative (red). The PMO column tells you if it is rising (green) or falling (red). Finally I've added my own "Sparkle Factor" that gives you my assessment going forward, bullish (green), bearish (red) or neutral (gray). The Sparkle Factor is basically my thoughts on whether I expect it to rise or fall. A neutral means it could really go either way so it could be added to a watch list. If you're in a stock I consider "neutral" going forward, the ball is in your court.
Darling:
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.
Below are commentary and chart from Tuesday 12/19:
"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."
Here is today's chart:
This is one of the reasons I like the Biotechs when things are going right for Healthcare. This stock boomed today with a brand new breakout. It's incredibly overbought right now which would prevent me from entering right now, but a pullback could make this one very interesting. In the meantime, it does look like it could continue climbing based on the positive configuration of the PMO.
Don't forget, on Thursdays I look at reader-requested symbols, so shoot me an email at erin@decisionpoint.com. I read every email I receive and try to answer them all!
Dud:
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."
Here is today's chart:
I still like this pick and I am continuing to hold my position. Had price lost support at the $44 level I'd have second thoughts, but for now I believe the position is viable. Stochastics did turn down, but as long as it holds above 50-day EMA I'm happy. The rising PMO also keeps me in this position.
THIS WEEK's Performance:
DecisionPoint Market Scoreboard (Mechanical Trend Model Signals):
Click Here to view Carl's annotated "Under the Hood" ChartList!
Sector to Watch: Healthcare (XLV)
XLV saw a surge on the PMO or a bottom above the signal line. The RSI is positive and participation is robust (maybe a little too robust, but there is a little headroom still left). Price is about to breakout above the July high. The one thing I didn't care for in the trading room was Stochastics. They are flat; however, they are in positive territory and look like they want to rise so I'm okay with them now. Look for a breakout.
Industry Group to Watch: Biotechnology (IBB)
One of the reasons I like Biotechs is that I have "under the hood" indicators to confirm my bullish outlook. Today saw a powerful breakout from a bull flag. The flat suggests much higher prices ahead for this group. There is a PMO Surge and the RSI is positive and not overbought. Stochastics are flat but near 80. Relative strength continues to improve. The symbols I mined this morning were: AMGN, IBRX, REGN and ABBV (I love the ABBV chart but I'm already exposed to this sector, take a look, definitely a "Diamond in the Rough").
Go to our Under the Hood ChartList on DecisionPoint.com to get an in-depth view of all the sectors. On StockCharts.com you can find the Industry Summary.
Good Luck & Good Trading!
- Erin
erin@decisionpoint.com
Full Disclosure: I'm 80% long, 0% short.
Watch the latest episode of the DecisionPoint Trading Room with Carl & Erin Swenlin on Mondays 3:00p EST!
Technical Analysis is a windsock, not a crystal ball. --Carl Swenlin
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 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 selection of "diamonds in the rough."
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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