I'm so excited to tell you about the new Scan Alert System that launched today! This is an excellent add-on the the DecisionPoint Diamonds subscription. If you want more symbols in front of you on the computer screen, this service will provide.
I run the same basic scans everyday and now you can get the raw results that I look at to pick out Diamonds in the Rough. I've saved a few obscure scans for myself. They are there in case the primary scans don't turn up anything. They aren't scans I use regularly and hence are not included in the Scan Alert System.
Right now you can get a free month of the Scan Alert System with the purchase of one month. Our free two-week trial is also available using coupon code DPTRIAL2. (P.S. If you don't have the DP Alert, you can get a free month if you add it to your subscription).
I noticed that two of today's selections are reporting earnings soon. I try to avoid that, but I really do like the charts. Use caution on entries before earnings.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": APD, GS, JPM and THS.
Runner-ups: HUM, FBRT, EA and VTR.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (7/26/2024):
Topic: DecisionPoint Diamond Mine (7/26/2024) LIVE Trading Room
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When: August 2, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine LIVE Trading Room
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Below is the latest free DecisionPoint Trading Room recording from 7/29. 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.
Air Products and Chemicals, Inc. (APD)
EARNINGS: 2024-08-01 (BMO) ** Reports Earnings Soon **
Air Products & Chemicals, Inc. engages in the manufacture and distribution of atmospheric gases. It operates through the following segments: Americas, Asia, Europe, Middle East and India, and Corporate and Other. The Americas, Asia, Europe, and Middle East and India segments focuses on producing and selling gases to customers, including those in refining, chemicals, metals, electronics, manufacturing, medical, and food industries. The Corporate and Other segment is involved in sales of cryogenic and gas processing equipment for air separation that is sold worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. The company was founded by Leonard Parker Pool on September 30, 1940 and is headquartered in Allentown, PA.
Predefined Scans Triggered: None.
APD is up +3.32% in after hours trading. The big double bottom caught my eye on the CandleGlance and I was happy to see that the rest of the chart is cooperating. It does report in a few days, but it is set up well. The RSI is positive and not at all overbought. There is a new PMO Crossover BUY Signal. Stochastics are rising in positive territory and relative strength lines are all angling higher. I set the stop below the pattern at 7.6% or $244.14.
This is mostly a range bound stock, but it sure looks ready to test the top of the channel for a nice tidy profit. The weekly RSI is positive and the weekly PMO is on the rise with this rising trend. The StockCharts Technical Rank (SCTR) could be better as right now it is outside the hot zone* above 70.
*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: 2024-10-15 (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: Elder Bar Turned Green and Parabolic SAR Buy Signals.
GS is up +0.06% in after hours trading. I saw a flag formation with a breakout from the flag's declining trend. It is under resistance, but I'm looking for a breakout based on the indicators. The RSI is positive and not overbought. The PMO is scooping back up for a PMO Surge. Stochastics are rising nicely in positive territory and relative strength is outstanding with all relative strength lines rising strongly. I still like the Financial sector as well. The stop is set below support at 7.5% or $467.74.
The weekly chart shows a strong rising price trend. The one problem is that it is very overbought based on the weekly RSI, but the weekly RSI just keeps rising. The weekly PMO also shows a surge above the signal line and we have a nice strong SCTR in the hot zone. Consider a 17% upside target to about $591.63.
J.P. Morgan Chase & Co. (JPM)
EARNINGS: 2024-10-11 (BMO)
Provides investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
Predefined Scans Triggered: Elder Bar Turned Green, P&F Ascending Triple Top Breakout, New CCI Buy Signals and P&F Double Top Breakout.
JPM is up +0.10% in after hours trading. Here we have another flag formation with a follow through upside breakout. It should see a breakout as the RSI is not overbought and the PMO has surged above the signal line. Stochastics are rising in positive territory and relative strength against the SPY is fantastic. It's even starting to show some leadership within the group based on the relative strength line against the group starting to rise. I've set the stop well below support at 7.4% or $199.26.
As with GS, JPM has a problem with an overbought weekly RSI. We do see it can get far more overbought so it isn't a huge worry. The weekly PMO is on a new Crossover BUY Signal and the SCTR is well within the hot zone. Consider a 17% upside target to $251.77.
TreeHouse Foods Inc. (THS)
EARNINGS: 2024-08-05 (BMO)
TreeHouse Foods, Inc. engages in the manufacture and distribution of private label packaged foods and beverages in North America. Its product portfolio includes snacking, beverages, and meal preparation products, available in shelf stable, refrigerated, frozen, and fresh formats. The company was founded on January 25, 2005 and is headquartered in Oak Brook, IL.
Predefined Scans Triggered: Elder Bar Turned Green, New CCI Buy Signals and Ichimoku Cloud Turned Green.
THS is down -0.05% in after hours trading. It does report next week. I liked the big basing pattern or rounded bottom out of the early April high. This is a reversal candidate so I'd probably keep my position size a little bit lower as the market itself is looking weaker. I'm looking for follow through on the breakout above the 200-day EMA. We didn't see it last time it broke above, but I think we'll see it soon. The RSI is not overbought and the PMO has surged above the signal line. Stochastics are rising in positive territory. It is showing good relative strength right now against the successful group and the SPY. The stop is set at 7% or $36.56.
As with many Consumer Staples stocks, this one is in a trading range. The good news is that it is bouncing off the bottom of the range. The weekly RSI is positive and not at all overbought and the weekly PMO is rising strongly. I'd like to see the SCTR in the hot zone, but it is at least seeing a little bit of a rise. If it can reach the top of this trading channel it would be quite a profit. I'm not counting on that, but I do see some good upside potential right now.
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 45% long, 3% 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