I only had one reader send in requests for Reader Request Day and I would have to say that they did a great job picking as I could've selected any of the symbols presented. Be sure and email me your symbol requests any time during the week and I'll write them down for consideration on Thursdays.
One of the stocks is a Marine Transportation stock. They gave me two. I struggled with which to pick, but ultimately went with NAT versus DHT. DHT had a high flying day and I felt that we could see profit taking tomorrow, but intermediate term I think both would work well. With the port closures it seems that these stocks will find favor although I'm not sure why. Maybe it is similar to Railroad stocks doing very well during their strike. Feel free to email me if you have an answer. I noticed these stocks rocketed during COVID and that was a huge disruption of the supply chain. Both are oil tanker stocks.
Tomorrow is the Diamond Mine trading room so be sure and register to join our fun little group. Meet fellow traders or just be a fly on the wall. All are welcome!
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": DGII, FLR and NAT.
Other requests: DHT, EBS, TTEK and PCAR.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (9/27/2024):
Topic: DecisionPoint Diamond Mine (9/27/2024) LIVE Trading Room
Recording & Download Link
Passcode: September#27
REGISTRATION for 9/27/2024:
When: September 27, 2024 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine 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 9/30. 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.
Digi Intl Inc. (DGII)
EARNINGS: 2024-11-07 (AMC)
Digi International, Inc. engages in providing internet of things (IoT) sensing as a service solution. It operates through the IoT Products and Services, and IoT Solutions segments. The IoT Products and Services segment offers products and services that help original equipment manufacturers, enterprise, and government customers. The IoT Solutions segment includes managed network–as–a service business via acquisition of Ventus Wireless, LLC, and affiliated entities. The company was founded in 1985 and is headquartered in Hopkins, MN.
Predefined Scans Triggered: None.
DGII is unchanged in after hours trading. It is enjoying quite a rally right now but amazingly the RSI still isn't overbought so it could see even higher prices before profit taking. The PMO has just triggered a Crossover BUY Signal and Stochastics are holding above 80. I'm not thrilled that overhead resistance is so close, but that PMO tells me there is a high likelihood that it will break above that level, but it may see some consolidation or a pullback beforehand. The stop is set beneath the EMAs at 7.5% or $26.85.
We have a large bullish double bottom on the weekly chart and the minimum upside target would take price very close to the 2022-2023 highs. The weekly RSI is not overbought and the weekly PMO has surged above the signal line. The StockCharts Technical Rank (SCTR) is not yet in the hot zone* above 70, but it is very close. I have marked upside potential to account for the double bottom. Not sure we'll see this large gain. The double bottom still hasn't been confirmed with a break above the confirmation line (middle of the "W").
*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.
Fluor Corp. (FLR)
EARNINGS: 2024-11-08 (BMO)
Fluor Corp. is a holding company, which engages in the provision of engineering, procurement and construction (EPC), fabrication and modularization, and project management services. It operates through the following segments: Energy Solutions, Urban Solutions, Mission Solutions, and Other. The Energy Solutions segment focuses on energy transition markets, asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources. The Urban Solutions segment involves the provision of EPC, project management, and professional staffing services. The Mission Solutions segment includes the technical products to federal agencies and services to commercial nuclear clients. The Other segment consists of operations on AMECO, Stork and NuScale. The company was founded by John Simon Flour, Sr. in 1912 and is headquartered in Irving, TX.
Predefined Scans Triggered: Moved Above Ichimoku Cloud, Moved Above Upper Price Channel and New CCI Buy Signals.
FLR is down -1.10% in after hours trading so it appears we already have some profit taking. I liked today's rally which took out what was going to be a bearish double top in the very short term. Overhead resistance is nearing, but given the PMO is rising above the zero line, I'm looking for it to continue its move higher. Stochastics have started turning back up above 80. The group is seeing excellent relative strength and so is FLR. It is showing leadership against the group and the SPY. The stop is set beneath support at 7.9% or $45.17.
The weekly chart is very bullish as we see a strong and steady rising trend. The weekly RSI is not overbought and the weekly PMO just turned up. The SCTR is in the hot zone now. Consider a 17% upside target to $57.39.
Nordic American Tanker Shipping Ltd. (NAT)
EARNINGS: 2024-12-05 (BMO)
Nordic American Tankers Ltd. operates as an international tanker company. It owns and operates Suezmax crude oil tankers. The company was founded by Herbjorn Hansson on June 12, 1995 and is headquartered in Hamilton, Bermuda.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, P&F High Pole, Moved Above Upper Price Channel and Moved Above Upper Keltner Channel.
NAT is up +0.26% in after hours trading. I like the breakout rally out of the prior trading range. The rally has been going for some time but we don't see an overbought RSI yet. The PMO is rising above the zero line indicating strength. The OBV is rising strongly as volume continues to pour in. Stochastics are above 80. The industry group itself is struggling right now, but maybe this strike will change that. NAT is showing excellent strength against the group and the SPY. The stop is set at the prior low in late September at 7.9% or $3.49. You may want to explore the yield on this one. It can't be that high, but it likely is pretty good. Also this is a low priced stock so position size wisely.
The weekly RSI is in positive territory and is not at all overbought. The weekly PMO is nearing a Crossover BUY Signal and the SCTR is almost in the hot zone. It is range bound right now and if it did get to the top of the range it would be a tidy 15% gain, but I think we could get a breakout here. The SCTR is not in the hot zone presently, but it is on its way.
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 60% 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