It appeared clear to me that it was time to be on the buy side instead of the short side after today's trading. My scans turned up hundreds of charts. I've narrowed it down for you by picking four "Diamonds in the Rough" and giving plenty of runner-ups.
Financials and Real Estate seemed to be the most represented. I don't trust the Real Estate sector right now so I opted not to include one. However, take what you will as far as scan representation. Banks clearly had a good day. I didn't include a Bank stock, but you can probably look to your favorites and find some nice charts.
We had some issues with logins last Friday. The problem has been fixed, but please let me know as soon as possible if you have any problems so I can get it corrected quickly.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": COTY, GS, NEE and VLTO.
Runner-ups: BSIG, CFG, FBNC, UNF, ALL, AXP, NI, FITB, PAHC and TSN.
RECORDING & DOWNLOAD LINK (4/19/2024):
Topic: DecisionPoint Diamond Mine (4/19/2024) LIVE Trading Room
Recording & Download Link HERE
Passcode: April#19
REGISTRATION for 4/26/2024:
When: Apr 26, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (4/26/2024) LIVE Trading Room
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Here is the latest recording from 4/22. 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.
Coty Inc. (COTY)
EARNINGS: 05/06/2024 (AMC)
Coty, Inc. engages in the manufacture, market, sale, and distribution of branded beauty products. It operates through the following segments: Prestige, Consumer Beauty, and Corporate. The company was founded by Francois Coty in 1904 and is headquartered in New York, NY.
Predefined Scans Triggered: None.
COTY is down -1.63% in after hours trading. We may get a better entry if profit taking continues from after hours. I liked the short-term breakout above resistance and the declining tops trendline. The RSI is positive now and there is a brand new PMO Crossover BUY Signal. Stochastics are rising strongly. Relative strength is positive for the group and COTY. I've set the stop below the first April bottom at 7.6% or $10.80.
Upside potential was one of the big reasons I chose COTY. It is in a trading range and is headed back to the top. The weekly RSI just hit positive territory and the weekly PMO is turning back up. The StockCharts Technical Rank (SCTR) is not in the hot zone* but it is headed there quickly.
*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.
Goldman Sachs Group, Inc. (GS)
EARNINGS: 07/15/2024 (BMO)
The Goldman Sachs Group, Inc. engages in the provision of financial services. It operates through the following business segments: Global Banking and Markets, Asset and Wealth Management, and Platform Solutions. The Global Banking and Markets segment includes investment banking, global investments, and equity and debt investments. The Asset and Wealth Management segment relates to the direct-to-consumer banking business which includes lending, deposit-taking, and investing. The Platform Solutions segment includes consumer platforms such as partnerships offering credit cards and point-of-sale financing, and transaction banking. The company was founded by Marcus Goldman in 1869 and is headquartered in New York, NY.
Predefined Scans Triggered: New CCI Buy Signals, New 52-week Highs, P&F Spread Triple Top Breakout, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel and P&F Double Top Breakout.
GS is up +0.12% in after hours trading. I liked today's breakout to new 52-week highs today. The RSI is positive and there is a PMO Crossover BUY Signal above the zero line. Stochastics just moved above 80. Relative strength is fantastic right now with relative strength lines moving almost vertically higher. The stop is set beneath support at 7.1% or $393.89.
The weekly chart suggests this could be an intermediate-term investment. The weekly RSI is positive and not yet overbought. The weekly PMO has surged or bottomed above the signal line. The SCTR is well within in the hot zone above 70. Consider a 17% upside target to $496.08.
NextEra Energy Inc. (NEE)
EARNINGS: 04/23/2024 (BMO)
NextEra Energy, Inc. engages in the provision of renewable energy. It operates through the following segments: FPL and NEER. The FPL segment involves the generation, transmission, distribution, and sale of electric energy in Florida. The NEER segment produces electricity from clean and renewable sources, including wind and solar. The company was founded on December 28, 1925 and is headquartered in Juno Beach, FL.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Moved Above Upper Price Channel and P&F Double Top Breakout.
NEE is up +0.45% in after hours trading. They reported this morning and rallied to a small breakout. The RSI is positive and not yet overbought. Even if it were to get overbought, we can see that it can maintain that based on March and into April. The PMO is flat above the zero line and just triggered a Crossover BUY Signal, this indicates pure strength. This is also a Utility which was our Sector to Watch last Friday. The OBV broke to a new high along with price. Stochastics are almost above 80. Relative strength is picking up for the group and NEE is outperforming the group and the SPY. The stop is set below support at 7.9% or $60.97.
The weekly chart is very bullish and favors an intermediate-term investment. The weekly RSI is positive and not overbought. The weekly PMO just moved above the zero line while on a Crossover BUY Signal. The SCTR is in the hot zone above 70. Upside potential is excellent should it return to 2022 highs.
Veralto Corp. (VLTO)
EARNINGS: N/A
Veralto Corp. engages in the provision of environmental and applied solutions. Its segments include Water Quality and Product Quality & Innovation. The Water Quality segment provides comprehensive portfolios of water analytics and differentiated water treatment solutions that enable the reliable delivery of safe drinking water by public and private utilities. The Product Quality & Innovation segment provides a broad set of solutions for brand owners and consumer packaged goods companies that enable speed to market as well as traceability and quality control of their products. The company was founded on October 26, 2022 and is headquartered in Waltham, MA.
Predefined Scans Triggered: New CCI Buy Signals, P&F Bullish Catapult, Moved Above Upper Keltner Channel, Stocks in a New Uptrend (ADX), Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
VLTO is up +3.73% in after hours trading. This one is relatively new as you'll see from the weekly chart. This breakout from the short-term trading channel looks excellent. The RSI is positive and not overbought. The PMO is rising on a Crossover BUY Signal that occurred above the zero line. Stochastics are rising and are near 80. We see great relative strength lines for the group and VLTO. I've set the stop beneath the 50-day EMA at 7.4% or $86.78.
The weekly chart doesn't have much information, but it does show us that despite the steep rising trend, the weekly RSI is not yet overbought. The OBV is confirming this rising trend. Consider an upside target of 17% or $109.65.
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 20% long, 0% short. All of these "Diamonds in the Rough" are on my radar.
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