It is Reader Request Day and I did get three people to submit requests today. I have one symbol from each of them. It is very difficult to find good charts as the market has been weak, but there are clearly some good charts as readers were able to find them. Good job, readers!
I still don't like what I'm seeing from the market right now. There are important jobs reports out tomorrow and that could sway the market if results are considered 'good', but I have a feeling they are going to suggest we are economically not in a good place right now and that will pressure the market downward.
Be sure and set your stops. You may want to tighten them up given market weakness, but primarily you should have them set.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": COGT, LBTYA and NNN.
Other requests: ACLX, MKTX, CEPU, BBDO, CPB, PRAX and SJ.TO.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (8/30/2024):
Topic: DecisionPoint Diamond Mine (8/30/2024) LIVE Trading Room
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Passcode: August#30
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When: September 6, 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 8/26 (No recording 9/2). 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.
Cogent Biosciences, Inc (COGT)
EARNINGS: 2024-10-31 (BMO)
Cogent Biosciences, Inc. is a biotechnology company, which engages in the development of precision therapies for genetically defined diseases. It focuses on CGT9486, a selective tyrosine kinase inhibitor that is designed to potently inhibit the KIT D816V mutation as well as other mutations in KIT exon 17. The company was founded by Charles Wilson and Dario Campana in March 2014 and is headquartered in Waltham, MA.
Predefined Scans Triggered: Elder Bar Turned Blue, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
COGT is unchanged in after hours trading. It is on a solid rally after breaking out from a trading channel. The EMAs are positively configured. The RSI has moved out of overbought territory. The PMO is rising above the zero line on a Crossover BUY Signal. Stochastics did move below 80 on today's decline so a better entry may be available. The group is holding its own against the SPY, but COGT is outperforming both the group and the SPY with no trouble. I set the stop arbitrarily at 7.9% or $10.35.
The breakout looks very good on the weekly chart and there is plenty of upside potential. The weekly RSI is positive and not yet overbought. The weekly PMO is rising on a Crossover BUY Signal above the zero line. The StockCharts Technical Rank (SCTR) is at the top of 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.
Liberty Global Ltd. (LBTYA)
EARNINGS: 2024-10-31 (AMC)
Liberty Global Ltd. engages in the provision of communications services. It offers broadband, video, and mobile communication solutions. It operates through the following segments: Sunrise, Telenet, VM Ireland, and Central and Other. The company was founded on July 27, 2022, and is headquartered in Hamilton, Bermuda.
Predefined Scans Triggered: New 52-week Highs and Shooting Star.
LBTYA is unchanged in after hours trading. It does have a bearish shooting star candlestick so we could see a day of consolidation or slight pullback to support tomorrow. Past that it looks very good on this breakout. The RSI is not yet overbought and the PMO is picking up speed on a Crossover BUY Signal. Stochastics are holding above 80. The group isn't doing that great, but it is holding its own against the SPY. LBTYA is showing improved relative strength against both the group and the SPY. The stop is set near the 50-day EMA at 7.6% or $18.74.
It has hit long-term overhead resistance so we are counting on a breakout here. The indicators suggest we'll get it. The weekly RSI is rising and is not overbought. The weekly PMO is accelerating higher above the zero line on a Crossover BUY Signal. The SCTR has just reentered the hot zone. If we get the breakout, I'm looking at a 21% upside target.
National Retail Properties Inc. (NNN)
EARNINGS: 2024-10-30 (BMO)
NNN REIT, Inc. is a real estate investment trust, which engages in investing in properties subject to long-term net leases. It acquires, owns, invests in, and develops properties that are leased to retail tenants under long-term net leases and held for investment. The company was founded on August 8, 1984 and is headquartered in Orlando, FL.
Predefined Scans Triggered: New 52-week Highs, P&F Double Top Breakout and P&F Triple Top Breakout.
NNN is up +0.21% in after hours trading. I like the breakout with the mechanical pullback. Price stayed above support on the pullback. The RSI is not overbought yet. The PMO is rising on a Crossover BUY Signal well above the zero line. PMOs over +2 are very good. The OBV line has been confirming the rally out of the April low. Stochastics are oscillating above 80. The group is doing very well in the lower interest rate environment. It is also outperforming the SPY. It is just beginning to show leadership among its peers. The stop is set beneath support at 7.9% or $44.11.
This looks like a very good breakout from a long-term trading range. The weekly RSI did just move into overbought territory so that could pose a problem as it generally doesn't get overbought. The weekly PMO is rising nicely on a Crossover BUY Signal. The SCTR just entered the hot zone above 70. Consider a 17% upside target to about $56.04.
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
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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