** IMPORTANT NOTE: The Symbol Summary on StockCharts is not working so I don't have company data, predefined scans triggered or after hours trading information. You'll see blanks. **
Thank you to those who sent in reader requests for today. I found three I like and honestly I could have presented all of them today.
One thing I noticed, as I run my scans daily, is the lack of results. The market is hitting all-time highs and yet very few stocks are coming up in my bullish scans. However, I will also say that the bearish Diamond Dog Scan only turned up 27 results. That's not that many, certainly not enough to think about shorting.
Clearly the market continues to be propped up by mega-cap stocks. NVDA looks far better today as it begins to bust the bearish head and shoulders top. I told you that NVDA's luck would change as soon as I sold it! This was a shortened trading day, but it looks like NVDA could resume its rally higher. We'll know more on Friday although holiday trading is likely to skew things again.
I have an ETF for you today. I also have an Energy stock and a Financial stock. I feel these are two areas showing strength and I expect it to continue. Thanks again to readers who sent in some nice looking stock charts.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": AGD, MFC and SU.
Other requests: FNDE, TRTX, ATI, FCX and KALU.
RECORDING & DOWNLOAD LINK (6/28/2024):
Topic: DecisionPoint Diamond Mine (6/28/2024) LIVE Trading Room
Download & Recording Link HERE
Passcode: June#28th
REGISTRATION for 7/5/2024:
When: July 5, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (7/5/2024) LIVE Trading Room
Register in advance for this webinar HERE.
After registering, you will receive a confirmation email containing information about joining the webinar.
Below is the latest free DecisionPoint Trading Room recording from 7/1. You'll find these recordings posted on Mondays to our DP YouTube Channel. Be sure and subscribe HERE.
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.
Aberdeen Global Dynamic Dividend Fund (AGD)
EARNINGS: N/A
********
Predefined Scans Triggered: *****
Today saw a nice breakout from a bullish ascending triangle (flat top, rising bottoms). The RSI is positive and not yet overbought. The PMO is flat above the signal line which signifies pure strength. It is also on a new Crossover BUY Signal. Stochastics are rising above 80 and we see some improved relative strength against the SPY. I would also note that this ETF has a nice yield right now. I've put the stop well below support. You don't have to wait it out if this trade goes south. I like to affix a 6% to 8% stop level on nearly all of my investments, but I will exit if things really get out of hand to the downside. I've set this one at 6% or $9.24.
I will say that it is getting very close to strong overhead resistance and that could pose a problem. However, the indicators are very favorable with the weekly RSI positive and not quite overbought, the weekly PMO rising on a Crossover BUY Signal and a StockCharts Technical Rank (SCTR) that is in the hot zone* above 70. Consider a 17% upside target to about $11.51.
*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.
Manulife Financial Corp. (MFC)
EARNINGS: ***
******
Predefined Scans Triggered: ****
We have a nice breakout today on the chart and it is accompanied by strong indicators. The RSI is positive and not overbought yet. The PMO has cruised into a new Crossover BUY Signal and Stochastics are oscillating above 80. The industry group is not doing well at all which is really the only problem with the chart. It is doing just fine against the SPY and that is what counts most. It is also a clear leader within the group. I've set the stop beneath support at 7.9% or $24.71.
We have a very strong weekly chart as we see price moving to new all-time highs. The weekly PMO is getting a touch overbought, but it could handle that for a few weeks. The weekly PMO has surged above the signal line (bottom above the signal line) and the SCTR is in the hot zone above 70. Consider a 17% upside target around $31.39.
Suncor Energy, Inc. (SU)
EARNINGS: ****
*******
Predefined Scans Triggered: ****
It has been on a nice rally with Crude Oil and I think both Crude and the Energy sector as whole are still bullish so we should see more follow through. I like that the RSI is not at all overbought given the length of this rally. Additionally, the PMO is on a brand new Crossover BUY Signal and has moved above the zero line. Stochastics are now above 80 and rising. The industry group is suffering, but that should change as the sector finds its footing. SU is already outperforming the SPY on its own and should we fish from this group, this is a good selection as we are seeing nice outperformance against the industry group itself. The stop is set beneath support at 7.9% or $35.94.
This looks like a flag formation on the weekly chart. Price is holding above the 2022 high. The weekly RSI is positive and not overbought and the SCTR just entered the hot zone. Unfortunately, the PMO isn't cooperating yet. Consider a 17% upside target to about $48.77.
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 40% 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