There a clear theme in today's scan results across the board. One industry group made waves and it was reflected in the scans. I had a number of Bank stocks reach the scan results, a ton of them. I decided I didn't want to go "all in" on one industry group, but including a Bank stock today was a must.
Determining which one was based on PMO value (above the zero line) and excellent relative strength against the group. I found one and despite an over 5% gain today it is not overbought.
Real Estate has been on my radar and I found a stock within the sector to include today. Consumer Staples may make a comeback given weakness detected in the Magnificent 7 so I have a stock from that sector as well. Finally our last selection comes from the Energy sector. I am expected Crude Oil to continue its rally and this stock should benefit.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CFG, CHD, CUZ and MPC.
Runner-ups: AJG, FHI, PNC, TMUS and XOM.
RECORDING & DOWNLOAD LINK (3/1/2024):
Topic: DecisionPoint Diamond Mine (3/1/2024) LIVE Trading Room
Recording & Download LINK
Passcode: March#1st
REGISTRATION for 3/8/2024:
When: Mar 8, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (3/8/2024) LIVE Trading Room
Register in advance for this webinar HERE
After registering, you will receive a confirmation email containing information about joining the webinar.
Here is the latest recording from 3/4. Click HERE to subscribe to the DecisionPoint YouTube Channel to be notified when new content is available.
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.
Citizens Financial Group Inc. (CFG)
EARNINGS: 04/17/2024 (BMO)
Citizens Financial Group, Inc. engages in the provision of commercial banking services. It operates through the Consumer Banking and Commercial Banking segments. The Consumer Banking segment includes deposit products, mortgage and home equity lending, student loans, auto financing, credit cards, business loans, and wealth management and investment services. The Commercial Banking segment offers lending and leasing, trade financing, deposit and treasury management, foreign exchange and interest rate risk management, corporate finance and debt, and equity capital markets. The company was founded in 1828 and is headquartered in Providence, RI.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Moved Above Ichimoku Cloud and Moved Above Upper Price Channel.
CFG is unchanged in after hours trading. Today was a very strong rally, one of the biggest by all the banks I looked at today. This is a big bullish engulfing candlestick that implies tomorrow should be another advance. The RSI is not overbought despite today's big move. The PMO was already rising and it has now triggered a Crossover BUY Signal above the zero line suggesting new strength. The OBV is jumping higher on high volume moves. Stochastics are nearly above 80. You can see how relative strength was boosted by today's love given to Banks. This bodes well for the group. CFG has excellent relative strength against the group and consequently the SPY. The stop is set around the 50-day EMA at 7.4% or $31.11.
I like the look of this breakout on the weekly chart. We have a bullish double bottom pattern and I've marked upside potential to the minimum upside target of the pattern. The weekly RSI tells us that CFG is not overbought. The weekly PMO is beginning to accelerate on a Crossover BUY Signal. The StockCharts Technical Rank (SCTR) just edged into the hot zone* above 70.
*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.
Church & Dwight Co, Inc. (CHD)
EARNINGS: 04/26/2024 (BMO)
Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products, and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, and household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment sells personal care products, household and over-the-counter products in Canada, France, Australia, China, the United Kingdom, Mexico, and Brazil. The Specialty Products segment consists of sales to businesses which participated in different product areas, namely animal productivity, specialty chemicals, and specialty cleaners. The Corporate segment includes equity in earnings of affiliates from Armand and ArmaKleen in 2021, 2020 and 2019. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.
Predefined Scans Triggered: New CCI Buy Signals and Moved Above Upper Price Channel.
CHD is unchanged in after hours trading. I like the current rally and the flat PMO above the zero line that suggests pure strength. We have a new Crossover BUY Signal on the PMO. The RSI is not overbought and Stochastics are above 80. Relative strength could be better for the group, but I was okay with this since CHD is showing some strength against the SPY. The stop is set beneath support at 6.2% or $95.59.
Price is now up against strong resistance, but indicators and that daily chart suggest we'll get a breakout here. The weekly RSI is positive and not overbought. The weekly PMO is on a Crossover BUY Signal that occurred above the zero line. The SCTR is the only detractor here, but it isn't in the basement. I prefer them to read above 50 though. An upside target can be set for a 17% gain or $119.24.
Cousins Properties, Inc. (CUZ)
EARNINGS: 04/25/2024 (AMC)
Cousins Properties, Inc. engages in the development, acquisition, leasing and management of real estate assets. The firm invests in urban office towers located in Sunbelt markets. It operates through the Office and Non-Office segments. The company was founded by Thomas G. Cousins in 1958 and is headquartered in Atlanta, GA.
Predefined Scans Triggered: New CCI Buy Signals, Stocks in a New Uptrend (Aroon), Moved Above Ichimoku Cloud, Parabolic SAR Buy Signals, P&F Double Top Breakout and P&F Triple Top Breakout.
CUZ is unchanged in after hours trading. Price is making a comeback. I selected this one primarily due to the bullish reverse head and shoulders. It is also from the Sector to Watch this week. The RSI is not at all overbought and is in positive territory. The PMO just gave us a Crossover BUY Signal. It has been residing above the zero line for some time. Volume is coming in and today's candlestick is bullish engulfing. Stochastics are rising toward 80. The group is beginning to outperform and if you want a stock from the group, this one tends to hold a leadership role. It is performing well against the SPY right now. I've set the stop beneath the 200-day EMA at 7.3% or $22.00.
The weekly chart is good with the exception of the SCTR value. There is a large double bottom pattern in motion. I set upside potential to where the upside target is of the pattern. The weekly RSI is positive and not overbought. The weekly PMO is rising on a Crossover BUY Signal above the zero line.
Marathon Petroleum Corp. (MPC)
EARNINGS: 04/30/2024 (BMO)
Marathon Petroleum Corp. is an independent company, which engages in the refining, marketing, and transportation of petroleum products in the United States. It operates through the following segments: Refining and Marketing, and Midstream. The Refining and Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast and Midwest regions of the United States, purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals, and trucks that the company owns or operates. The Midstream segment transports, stores, distributes and markets crude oil and refined products principally for the Refining and Marketing segment via refining logistics assets, pipelines, terminals, towboats, and barges. It also gathers, processes, and transports natural gas, and gathers, transports, fractionates, stores, and markets NGLs. The company was founded in 1887 and is headquartered in Findlay, OH.
Predefined Scans Triggered: New 52-week Highs, Moved Above Upper Bollinger Band, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
MPC is unchanged in after hours trading. I liked the breakout in price above overhead resistance. The RSI is positive and not yet overbought. The PMO has flattened well above the zero line and triggered a new Crossover BUY Signal. Stochastics just moved above 80. Relative strength for the group isn't great, but MPC is a clear outperformer against both the group and especially the SPY. If Crude is going to do well, we should see MPC do the same. The stop is set at the 50-day EMA at 7.4% or $162.20.
The weekly chart is very strong with the exception of an overbought weekly RSI. The weekly PMO is very favorable as it is mostly flat above the zero line and is currently on a Crossover BUY Signal. It is not overbought. The SCTR is in the hot zone. Consider an upside target around 17% or $204.95.
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 60% 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 2024 DecisionPoint.com
Watch the latest episode of DecisionPoint Trading Room with Carl & Erin Swenlin Mondays on the DecisionPoint 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