During today's Diamond Mine trading room, I ran a handful of scans and was able to find some interesting prospects for moving into next week. I'm still not convinced the market will rally next week, but these stocks are poised to do well with or without the market.
Despite having a bearish outlook, it was clear that today's "Sector to Watch" should be Technology (XLK). I'll explain why later. The "Industry Group to Watch" was narrowed to two, Computer Services and Telecom Equipment. I voted for the former due to topping Stochastics on Telecom, but you can review CTSH and PSFE from Telecom Equipment.
The scan results that I liked in today's trading room were: KIE, AVAV, MTN, NTCT, ORLY and DASH.
Have a great three-day weekend! We will not be holding the DecisionPoint Trading Room on Monday due to the holiday.
Good Luck & Good Trading,
Erin
RECORDING & DOWNLOAD LINK (1/12/2024):
Topic: DecisionPoint Diamond Mine (1/12/2024) LIVE Trading Room
Recording & Download Link HERE.
Passcode: January#12
REGISTRATION for 1/19/2024:
When: Jan 19, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (1/19/2024) LIVE Trading Room
Register in advance for this webinar HERE.
After registering, you will receive a confirmation email containing information about joining the webinar.
Our latest DecisionPoint Trading Room recording was not posted to YouTube, below you will find the recording and download link (recording will be removed on 1/22):
Recording & Download Link HERE.
Passcode: January#8
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:
Global X Uranium ETF (URA)
EARNINGS: N/A
URA tracks a market-cap-weighted index of companies involved in uranium mining and the production of nuclear components.
Below are the commentary and chart from Thursday, 1/11:
"URA is up +1.50% in after hours trading. The rally has kicked into gear. Yesterday I didn't include URA due to the bearish filled black candlestick. Apparently that wasn't a problem. The breakout looks great and new 52-week highs are being made. The RSI is positive and not yet overbought. The PMO has just generated a Crossover BUY Signal and Stochastics are above 80 rising strongly. This ETF has been outperforming the market this year. The stop is set halfway down the prior trading range at 6.1% or $27.59."
Here is today's chart:
Excellent day for Uranium which propelled it to be this week's "Darling". It is incredibly overbought, but the chart is extremely positive. I'd be interested in getting in on a pullback though. The set up was nice with a breakout and a bullish conclusion to the bearish filled black candlestick. I didn't expect today's explosion, but it does suggest we will see some follow through.
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:
United Airlines Holdings Inc. (UAL)
EARNINGS: 01/22/2024 (AMC)
United Airlines Holdings, Inc. is a holding company, which engages in the provision of transportation services. It operates through the following geographical segments: Domestic, Atlantic, Pacific, and Latin America. The company was founded on December 30, 1968 and is headquartered in Chicago, IL.
Below are the commentary and chart from Tuesday, 1/9:
"UAL is up +0.34% in after hours trading. Price broke out briefly today, but closed beneath resistance. I see a breakout in its future. The RSI is positive and not overbought yet. The PMO is nearing a Crossover BUY Signal above the zero line. Stochastics are rising strongly and should get above 80 soon. Relative strength is beginning to pick up for the Airlines and UAL is typically a leader amongst the group based on relative strength. The stop is set beneath the 50-day EMA around 6.5% or $40.70."
Here is today's chart:
I shouldn't have picked this one based on the news regarding the door on 737s. I thought it would only affect Boeing, but I have a feeling it echoed. I also heard that Delta Airlines (DAL) reported poor earnings and that could have echoed to UAL as well. The set up was excellent so outside influences clearly had their way with the stock. Sometimes these circumstances are unavoidable.
THIS WEEK's Performance:
DecisionPoint Market Scoreboard (Mechanical Trend Model Signals):
Click Here to view Carl's annotated "Under the Hood" ChartList!
Sector to Watch: Technology (XLK)
While I am feeling uncertain about the future of the market right now, I had to pick XLK. It has everything going the right way in my opinion. The RSI is positive and not overbought. The PMO is beginning to rise above the zero line. While I don't like the bearish bias in the intermediate term based on the Silver Cross Index being below its moving average, but I do like the improvement in stocks above their 20-day EMAs. Stochastics are rising and near 80 and relative performance is picking up for the group. I would keep XLK on the radar, but I'm not advising expanding exposure.
Industry Group to Watch: Computer Services ($DJUSDV)
We saw an incredible breakout today in this group. We could very well see a pullback toward the breakout point before it gets going again. The PMO has just turned up well above the zero line. Stochastics are rising strongly and relative strength is really picking up for the group. The symbols I found in this group were SATS and PANW.
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 75% 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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