I would first like to thank all of you that have sent me words of encouragement since I revealed my mother was on hospice. We are praying for her peace right now.
In the meantime, I decided I wanted to get some "Diamonds in the Rough" out to you this week. A shot at normalcy. However, I will not be able to host the trading room on Friday, nor get a Diamonds Recap out on Friday. I'll be giving four picks today, three ETF picks Wednesday and three Reader Requests on Thursday. One way you could really help me out is to send your requests in. The more I have, the less likely I will have to branch out and do research on my own.
Again thank you for all of your kind thoughts and prayers.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CTKB, FFIV, IRT and NGVT.
Runner-ups: PLUS, AVB, MORN, ACIW, EQR, PJT and THRY.
RECORDING & DOWNLOAD LINK (3/29/2024):
Topic: DecisionPoint Diamond Mine (3/29/2024) LIVE Trading Room
Recording & Download LINK
Passcode: March#28
REGISTRATION for Friday Diamond Mine:
Canceled until further notice.
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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.
Cytek BioSciences Inc. (CTKB)
EARNINGS: 05/07/2024 (AMC)
Cytek Biosciences, Inc. is a life sciences technology company, which engages in the provision of cell analysis tools by leveraging novel technical approaches. Its products include Cytek Aurora CS, Cytek Aurora, Cytek Northern Lights, and Cytek NL-CLC. The company was founded by Wenbin Jiang and Ming Yan in 1992 and is headquartered in Fremont, CA.
Predefined Scans Triggered: P&F Double Bottom Breakdown and New CCI Buy Signals.
CTKB is unchanged in after hours trading. I like how it is beginning to base on top of support. There is a cup shape building here. The RSI isn't positive yet, but another day or two of rally will fix that. This is a boom or bust stock and carries more risk than some of our other picks. The PMO has triggered a Crossover BUY Signal and Stochastics are rising nicely. Relative strength is also working in its favor. The stop is set below those previous lows at 8% or $6.35.
The weekly chart is hit or miss. I like the bullish reverse head and shoulders pattern, but the rest of the indicators don't look good. Another reason why this holds more risk. It is also very low priced and that also carries some risk. The StockCharts Technical Rank (SCTR) doesn't look very healthy as it is outside the hot zone* above 70. Upside potential is very good if it reaches the neckline of the reverse head and shoulders pattern.
*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.
F5 Networks, Inc. (FFIV)
EARNINGS: 04/17/2024 (AMC)
F5, Inc. engages in the business of multi-cloud application services. Its products include F5 distributed cloud services, F5 NGINX, F5 BIG-IP, and F5 Systems. It operates through the following geographical segments: Americas, Europe, the Middle East, and Africa, and Asia Pacific. The company was founded on February 26, 1996 and is headquartered in Seattle, WA.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, P&F Double Top Breakout and P&F Triple Top Breakout.
FFIV is up +0.63% in after hours trading. What got me on this chart was the breakout combined with a PMO BUY Signal above the zero line. The RSI is positive and Stochastics have now reached above 80. Relative strength for the group is so so, but it is improving. FFIV is really outperforming the group so it is consequently outperforming the SPY. The stop doesn't need to be set too deeply. I've listed a 5.9% stop around $184.50.
I like the weekly chart all the way around. First and foremost is a weekly PMO Surge above the signal line. The RSI is also positive and not yet overbought. The SCTR, while not in the hot zone is very close to it. Upside potential is over 27%.
Independence Realty Trust, Inc. (IRT)
EARNINGS: 04/24/2024 (AMC)
Independence Realty Trust, Inc. is a real estate investment trust, which acquires, owns, operates, improves and manages multifamily apartment communities across non-gateway U.S. markets. It aims to provide stockholders risk-adjusted returns through diligent portfolio management, operational performance and consistent return of capital through distributions and capital appreciation. The company was founded on March 26, 2009 and is headquartered in Philadelphia, PA.
Predefined Scans Triggered: Moved Above Upper Keltner Channel, Moved Above Upper Price Channel and P&F Double Top Breakout.
IRT is down -0.30% in after hours trading. Today saw a strong breakout that followed a strong rally to resistance. The RSI is positive and not overbought. The PMO is flat above the zero line and is now on a Crossover BUY Signal, that implies strength. Stochastics are rising strongly toward 80. Relative strength is picking up for the group. IRT is a leader as far as relative strength against the group. It is beginning to outperform the SPY in a big way. The stop is set between the 20/50-day EMAs at 7.2% or $15.48.
We have a very strong weekly chart. 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 almost in the hot zone above 70.
Ingevity Corp. (NGVT)
EARNINGS: 05/01/2024 (AMC)
Ingevity Corp. engages in the manufacture of specialty chemicals and carbon materials. It operates through the following segments: Performance Chemicals and Performance Materials. The Performance Materials segment consists of automotive technologies and process purifications product families. Automotive technologies produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. Process purifications produce a number of activated carbon products for food, water, beverage and chemical purification applications. The Performance Chemicals segment primarily addresses applications in three product families: pavement technologies, oilfield technologies, and industrial specialties. The company was founded on March 27, 2015 and is headquartered in North Charleston, SC.
Predefined Scans Triggered: New CCI Buy Signals, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel and Parabolic SAR Buy Signals.
NGVT is unchanged in after hours trading. We don't have the breakout yet, but today's rally does suggest we will see follow through, it was a big rally. The RSI is positive and not overbought. There is a new PMO Crossover BUY Signal. The PMO is also flat above the zero line which implies pure strength. Stochastics are rising after reversing in positive territory. Relative strength is improving steadily for the group and NGVT. I've set the stop beneath the 50-day EMA at 7.8% or $45.33.
Again, a breakout here would be nice. It is strong overhead resistance so it may have to work at it. The weekly RSI is positive and not at all overbought. The weekly PMO is rising strongly on a Crossover BUY Signal. The SCTR is not in the hot zone above 70, but it is rising strongly. Upside potential is measured to the late 2023 top.
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