Thank you to those that submitted reader requests this week. I was definitely on board with the Energy theme that I found and consequently have two Energy stocks for your consideration. Well done, readers. I believe we are ready to see this sector rejuvenate with the new rally in Crude Oil.
The other requests were very interesting and one of the stocks I found particularly interesting primarily due to its upside potential on its current rally. The next level of overhead resistance doesn't arrive until we see an over 13% gain.
I think you'll find all of today's selections interesting, but I do think you should take a look at some of the other requests for comparison. I picked my favorites but maybe you have different ones.
Silver and two Gold Miners were also in the requests. I see some potential in Silver, but still am hesitant about Gold Miners. While the charts are bullish, I think the strong Dollar will make a rally difficult. We'll see.
Don't forget to register for tomorrow's Diamond Mine trading room! After today's reversal in the market I'll be very interested in seeing whether the late decline sees follow through in the morning.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": DTM, OXY and YOU.
Runner-ups: WES, CHWY, NEM, SLV, AEM, BILI, AMP and CGNX (presented on Monday).
RECORDING & DOWNLOAD LINK (6/14/2024):
Topic: DecisionPoint Diamond Mine (6/14/2024) LIVE Trading Room
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When: Jun 21, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (6/21/2024) LIVE Trading Room
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Here is the latest recording from 6/17. 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.
DT Midstream Inc. (DTM)
EARNINGS: 08/01/2024 (BMO)
DT Midstream, Inc. engages in the operation and development of natural gas midstream interstate and intrastate pipelines, storage and gathering systems, and compression, treatment and surface facilities. It operates through the Pipeline and Gathering segments. The Pipeline segment includes interstate pipelines, intrastate pipelines, storage systems, lateral pipelines including related treatment plants and compression and surface facilities. The Gatherings segment focuses on the gathering systems, related treatment plants, and compression and surface facilities. The company was founded on November 20, 2007, and is headquartered in Detroit, MI.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Keltner Channel, New 52-week Highs, Moved Above Upper Price Channel, Parabolic SAR Buy Signals and P&F Double Top Breakout.
DTM is down -0.03% in after hours trading. We have another breakout to new all-time highs. Energy may've been in decline but DTM bucked the trend and moved higher. It should benefit from a reviving Energy sector. The RSI is getting overbought so we could see a small pullback toward the last breakout point, but I doubt it will turn into a meaningful decline given the new PMO Crossover BUY Signal. Stochastics have also turned back up. Relative performance hasn't been great for the group but it is picking up. We have a leader here based on relative strength to the group. It is beginning to outperform the SPY. The stop is set at 7.6% or $64.19.
It has definitely been on a roll and based on the weekly chart, it could still move even higher. The one problem is the overbought weekly RSI, but given the strong bull market move, that condition is likely to persist. The weekly PMO is rising strongly. The StockCharts Technical Rank (SCTR) is near the top of the hot zone* above 70. Consider a 17% upside target around $81.28.
*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.
Occidental Petroleum Corp. (OXY)
EARNINGS: 07/31/2024 (AMC)
Occidental Petroleum Corp. engages in the exploration and production of oil and natural gas. It operates through the following segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment explores for, develops and produces oil and condensate, natural gas liquids, and natural gas. The Chemical segment manufactures and markets basic chemicals and vinyls. The Midstream and Marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, natural gas liquids, natural gas, carbon dioxide, and power. The company was founded in 1920 and is headquartered in Houston, TX.
Predefined Scans Triggered: New CCI Buy Signals.
OXY is up +0.22% in after hours trading. I really like the short-term bullish double bottom that has been confirmed with today's breakout move. The RSI has just now moved into positive territory. The PMO is on a new Crossover BUY Signal and Stochastics are making their way higher. Not surprisingly the group hasn't been performing well and neither has OXY against the SPY, but I believe we are going to see an upside reversal in Energy alongside a good Crude Oil trade. I do note that the declining tops on the relative strength line against the SPY was broken. If the group is going to turn around, this one is a big time leader within so it should see even more upside. The stop is set beneath support at 6.3% or $58.50.
It has been a trading range stock but it didn't have to test the bottom before reversing which is bullish. The weekly RSI just hit positive territory. The weekly PMO is on a Crossover SELL Signal, but that is due to the slump in Energy and this stock. That should change. The SCTR isn't in the hot zone, but it is on its way.
Clear Secure Inc. (YOU)
EARNINGS: 07/31/2024 (BMO)
Clear Secure, Inc. is an identity company, which engages in developing biometric identity verification technology platforms. Its identity platform connects passengers to the cards in their wallet transforming the way passengers live, work, and travel, and focuses on providing verification in several areas, such as events, healthcare, and sporting stadiums. It offers secured biometric identity verification to its customers from different industries through its CLEAR brand. The company was founded by Caryn Seidman-Becker and Kenneth Cornick in 2010 and is headquartered in New York, NY.
Predefined Scans Triggered: Moved Above Ichimoku Cloud and P&F Double Top Breakout.
YOU is unchanged in after hours trading. I like this reverse head and shoulders basing pattern that suggests we will see a move to the upside target at $21.50. It would be the minimum upside target so we could get even more follow through. The left shoulder is a little wonky, but I believe it counts. The RSI is not overbought and the PMO is on a Crossover BUY Signal. It just moved above the zero line. We have a Silver Cross of the 20/50-day EMAs arriving soon as well. Stochastics are above 80. In this case, relative strength is positive across the board. The stop is set beneath the right shoulder at 7.3% or $17.41.
Price is rising new its all-time lows so this is a reversal play. The weekly RSI just hit positive territory and the weekly PMO is now on a Crossover BUY Signal. The SCTR isn't in the hot zone, but it is rising quickly toward it.
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 "Under the Hood" 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 48% 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