I didn't realize this week was shortened until I'd already set the date for the Diamond Mine to Friday morning. The trading room will be moved to Thursday this week. As you can see you are getting a Monday report. We are basically moving everything back a day so tomorrow will be ETF Day and Wednesday will be Reader Request Day so get those requests in early! Thursday morning we will have the Diamond Mine and the Diamonds Recap will be published on Thursday as well.
For those of you who subscribe to the DP Alert, the Weekly/Monthly Wrap will be going out on Thursday instead of Friday.
The scans were plentiful today with selections from most sectors. Not surprisingly we had very few Real Estate stocks come in based on poor performance. Past that I didn't really ferret out a theme for today.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": AR, TTD, TTMI and ZBRA.
Runner-ups: CINF, MHK, TREX, FSS, HCC and TDG.
RECORDING & DOWNLOAD LINK (3/22/2024):
Topic: DecisionPoint Diamond Mine (3/22/2024) LIVE Trading Room
Recording & Download Link
Passcode: March#22
REGISTRATION for 3/28/2024 (THURSDAY):
When: Mar 28, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (3/28/2024) LIVE Trading Room
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Here is the latest recording from 3/25. 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.
Antero Resources Corp. (AR)
EARNINGS: 04/24/2024 (AMC)
Antero Resources Corp. engages in the development, production, exploration, and acquisition of natural gas. It operates through the following segments: Exploration and Production, Marketing, and Equity Method Investment in Antero Midstream. The Exploration and Production segment deals with the development and production of natural gas, NGLs, and oil. The Marketing segment refers to marketing and utilization of excess firm transportation capacity. The Equity Method Investment in Antero Midstream segment represents midstream services. The company was founded by Paul M. Rady and Glen C. Warren, Jr. in June 2002 and is headquartered in Denver, CO.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, Parabolic SAR Buy Signals and P&F Low Pole.
AR is down -0.15% in after hours trading. I liked this chart best of all today. Mainly I like it because of the breakout move and the upcoming "golden cross" of the 50/200-day EMAs. We have a PMO that has been running flat above the zero line and has triggered a Crossover BUY Signal. The RSI is getting overbought, so the rally could consolidate a bit before it moves back up, but it looks like we should still see some upside follow through on this breakout. The OBV is confirming the move as volume begins pouring in. Stochastics are rising above 80. Relative strength is picking up for AR and it is already in a good group. The stop is set at 7.4% below support around $25.42.
I have annotated a complex double bottom pattern on the weekly chart. The RSI is positive and not yet overbought. The weekly PMO is rising above the zero line on a Crossover BUY Signal. The StockChart Technical Rank (SCTR) isn't in the hot zone* yet, but it is on its way. Based on the double bottom's minimum upside target, I have the upside target set to that level.
*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.
Trade Desk Inc. (TTD)
EARNINGS: 05/08/2024 (AMC)
The Trade Desk, Inc. engages in the provision of a self-service and cloud-based ad-buying platform. It operates through the United States and International geographical segments. The firm offers omnichannel advertising, audience targeting, solutions for identity, application programming interface (API), custom, and programmatic, measurement and optimization. The company was founded by Jeffrey Terry Green and David Pickles in November 2009 and is headquartered in Ventura, CA.
Predefined Scans Triggered: Stocks in a New Downtrend (Aroon), Moved Above Upper Keltner Channel, Ichimoku Cloud Turned Green, Moved Above Upper Price Channel and P&F Double Top Breakout.
TTD is up +0.15% in after hours trading. Today saw a strong breakout from the trading range established after earnings. Price was much higher intraday back in February which offers lots of upside potential. We see a positive and not overbought RSI. The PMO is on a new Crossover BUY Signal well above the zero line. Stochastics are above 80. The group isn't performing that well, but still is seeing a rising trend on relative strength. TTD is showing very good relative strength against both the group and the SPY. I've set the stop below the 20-day EMA at 7.5% or $80.98.
I like the weekly indicators even though I don't like overhead resistance nearing. The weekly RSI is positive and not overbought. The weekly PMO is rising above the zero line on a Crossover BUY Signal. The SCTR is just about in the hot zone above 70. I think we could see all-time highs once again.
TTM Technologies, Inc. (TTMI)
EARNINGS: 05/01/2024 (BMO)
TTM Technologies, Inc. engages in the manufacture and sale of printed circuit boards and backplane assemblies. It operates through the Printed Circuit Board and RF&S Components segments. The Printed Circuit Board segment consists of fifteen domestic PCB and sub-system plants, five PCB fabrication plants in China, and one in Canada. The RF&S Components segment consists of one domestic RF component plant and one RF component plant in China. The company offers products such as backplanes, system integration, chassis assemblies, integrated circuit substrates and chips, and engineering services. The company was founded on March 20, 1978 and is headquartered in Santa Ana, CA.
Predefined Scans Triggered: Bullish MACD Crossovers and Moved Above Ichimoku Cloud.
TTMI is up +0.32% in after hours trading. It had an incredible rally today so I wouldn't be surprised if it had a mechanical pullback tomorrow which would offer a better entry. This is a "V" bottom and the pattern implies we'll see a breakout above the February top. The RSI is above net neutral (50) and is not at all overbought yet. There is a new PMO Crossover BUY Signal on the chart and Stochastics are rising vertically toward 80. The group has really been outperforming. TTMI is just beginning to outperform both the group and the SPY. The stop is set beneath the 200-day EMA at 7.1% or $14.30.
I'm not enamored with the weekly chart as it does show TTMI tends to travel in a sideways trading range. It should reach the top, but I'd like to see it breakout from there to give us a 17% upside target at $18.02. The weekly RSI just moved into positive territory. The weekly PMO has whipsawed back into a Crossover BUY Signal above the zero line. The SCTR is not in the hot zone, but it is rising quickly.
Zebra Technologies Corp. (ZBRA)
EARNINGS: 04/30/2024 (BMO)
Zebra Technologies Corp. engages in the design, manufacture, and sale of automatic identification and data capture products. Its products include mobile computers, barcode scanners, radio frequency identification devices readers, specialty printers for barcode labeling and personal identification, real-time location systems, accessories and supplies, such as self-adhesive labels and other consumables, and software utilities and applications. It also provides services such as maintenance, technical support, repair, and managed and professional services, including cloud-based subscriptions. It operates through Asset Intelligence and Tracking and Enterprise Visibility and Mobility segments. The Asset Intelligence and Tracking segment is involved in barcode and card printing, location solutions, supplies, and services. The Enterprise Visibility and Mobility segment focuses on mobile computing, data capture, and RFID. The company was founded by Edward L. Kaplan and Gerhard Cless in 1969 and is headquartered in Lincolnshire, IL.
Predefined Scans Triggered: Ichimoku Cloud Turned Green, Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Double Top Breakout and P&F Triple Top Breakout.
ZBRA is down -0.34% in after hours trading. It had a strong breakout rally today. This is what triggered the PMO Crossover BUY Signal. The PMO has been flattening above the zero line and that implies pure strength. The RSI is not overbought. Stochastics are back above 80 and relative strength is rising for the group. We're also seeing outperformance by ZBRA versus the group and the SPY. I set the stop beneath support at 7.8% or $274.70.
A reverse head and shoulders pattern caught my eye on the weekly chart. The rally took price above the neckline and implies more upside to go. I believe the upside target of the pattern would put price right on overhead resistance. The weekly RSI is not overbought and the weekly PMO is showing strength as it moves higher above the zero line. The SCTR has just entered the hot zone.
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 65% 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
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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