Thank you this week to all who provided symbols for today. You all have a very good eye right now on picking stocks for review. It was difficult to choose so I opted to try and use symbols from three different subscribers. Although I must say that one of the symbols, ANNX, was chosen by two separate people. I had to pick it not only for that reason, but the chart looks pretty good so it isn't surprising that two people requested it.
I liked the upside potential of today's stocks as well. They have room for much expansion.
The market doesn't want to go down as rate cuts are imminent, but I wouldn't be surprised if we saw some chop headed into the actual announcement next week.
Tomorrow is the Diamond Mine trading room! Hope to see you there! Registration information is below the Diamonds logo below.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": ANNX, BX and CCO.
Other requests: ROKU, CPRX, ALC, YY, NOW, SMMT, UEC, ARLP, WULF and BTC.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (9/6/2024):
Topic: DecisionPoint Diamond Mine (9/6/2024) LIVE Trading Room
Recording & Download Link
Passcode: September#6
REGISTRATION for 9/13/2024:
When: September 13, 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 9/9. 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.
Annexon Inc. (ANNX)
EARNINGS: 2024-11-14 (BMO)
Annexon, Inc. is a clinical-stage biopharmaceutical company, which develops a pipeline of novel therapies for patients with classical complement-mediated disorders of the body, eye and brain. It offers drugs that control or target huntington's and alzheimer's disease, multiple sclerosis, glaucoma, parkinson's disease, and spinal muscular atrophy. The company was founded by Ben Barres and Arnon Rosenthal on March 3, 2011 and is headquartered in Brisbane, CA.
Predefined Scans Triggered: Moved Above Upper Bollinger Band and Moved Above Upper Price Channel.
ANNX is up +1.49% in after hours trading. It hasn't quite broken out of the trading range, but it did close above the July high. It was a strong performance today. The chart is set up for follow through. The RSI is rising and is not overbought. There is a new PMO BUY Signal above the zero line that implies strength. Stochastics show internal strength as they are above 80. The Pharma group isn't performing well, but that didn't stop ANNX from rallying strongly out of the last low. It is a clearly outperforming both the group and the SPY. It was tough to set the stop given today's big move, but I opted to set it at 7.8% or $6.20. It is a low-priced stock so position size wisely.
I like upside potential. It doesn't have to travel that high to get us a good profit. The weekly RSI is positive and not overbought. The weekly PMO is nearing a Crossover BUY Signal. I really like the high StockCharts Technical Rank (SCTR) that has put it in the hot zone*.
*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.
Blackstone Group Inc. (BX)
EARNINGS: 2024-10-17 (BMO)
Blackstone, Inc. engages in the provision of investment and fund management services. It operates through the following segments: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions. The Real Estate segment includes management of opportunistic real estate funds, Core+ real estate funds, high-yield real estate debt funds, and liquid real estate debt funds. The Private Equity segment consists of management of flagship corporate private equity funds, sector and geographically focused corporate private equity funds, core private equity funds, an opportunistic investment platform, a secondary fund of funds business, infrastructure-focused funds, a life sciences investment platform, a growth equity investment platform, a multi-asset investment program for eligible high net worth investors and a capital markets services business. The Credit and Insurance segment refers to Blackstone Credit, which is organized into two overarching strategies: private credit which includes mezzanine direct lending funds, private placement strategies, stressed and distressed strategies and energy strategies, and liquid credit which consists of CLOs, closed-ended funds, open ended funds and separately managed accounts. In addition, the segment includes an insurer-focused platform, an asset-based finance platform, and publicly traded master limited partnership investment platform. The Hedge Fund Solutions segment focuses on Blackstone Alternative Asset Management, which manages a broad range of commingled and customized hedge fund of fund solutions. It also includes a GP Stakes business and investment platforms that invest directly, as well as investment platforms that seed new hedge fund businesses and create alternative solutions through daily liquidity products. The company was founded by Stephen Allen Schwarzman in 1985 and is headquartered in New York, NY.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, P&F Ascending Triple Top Breakout, New CCI Buy Signals, P&F Double Top Breakout and New 52-week Highs.
BX is down -0.01% in after hours trading. The breakout sold me on this one. It is clean and strong. The indicators have shaped up nicely too. The RSI is not yet overbought and the PMO is on a new Crossover BUY Signal well above the zero line. The PMO is also flattening above the zero line which indicates pure strength. The OBV broke to a new high with price. Stochastics are rising above 80. Relative strength is pretty good for the group although of late it hasn't been outperforming. BX is a leader in this are based on relative strength against the group. It is performing very well against the SPY right now. I've set the stop at the 50-day EMA at 7.6% or $135.36.
We see that BX is making new all-time highs and looks poised to continue to rise after breaking out above the 2021 high. The weekly RSI is positive and not overbought. The weekly PMO is on the rise after a Crossover BUY Signal well above the zero line. The SCTR also happens to be in the hot zone above 70. Consider a 17% upside target to about $171.41.
Clear Channel Outdoor Holdings Inc. (CCO)
EARNINGS: 2024-11-06 (BMO)
Clear Channel Outdoor Holdings, Inc. engages in the provision of outdoor advertising solutions. It operates through the following segments: America, Airports, Europe-North, and Other. The America segment serves U.S. operations excluding airports. The Airports segment focuses on out-of-home advertising around and within airports in the U.S. and Caribbean. The Europe-North segment consists of Northern and Central Europe, including the U.K., Sweden, Belgium, Norway, Finland, the Netherlands, Denmark, Ireland, Poland, Estonia, Latvia, and Lithuania. The Other segment deals with the operations in Latin America and Singapore. The firm's products include billboards, street furniture, and transit advertising in traditional and digital formats. The company was founded in 1995 and is headquartered in San Antonio, TX.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Moved Above Ichimoku Cloud, Elder Bar Turned Green, Improving Chaikin Money Flow and Moved Above Upper Price Channel.
CCO is up +0.60% in after hours trading. Today saw a healthy breakout above the May top. It is on a nice rising trend right now. There is a brand new Silver Cross IT Trend Model BUY Signal as the 20-day EMA crossed above the 50-day EMA. The RSI is not overbought so it can accommodate more upside price movement. The PMO is rising above the zero line on a Crossover BUY Signal. Stochastic have moved above 80. The group is performing alright, but not that great near-term. We are seeing outperformance against the group and the SPY though so that's just fine. The stop is set beneath support at 7.8% or $1.50. This is very low-priced so be very careful on position sizing. I prefer to stay away from stocks priced this low.
The low price makes this one a Boom or Bust type of stock. It has been in a trading range for some time but the last lows didn't test the bottom of the range which is bullish. It looks primed to go back to the top of the trading range. The weekly RSI is positive and the weekly PMO is nearing a Crossover BUY Signal above the zero line. The SCTR is almost in the hot zone.
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 20% 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