We didn't get much in the way of Reader Requests today. It's been quite light, but I'm going to keep Thursdays open for requests as always. I will always add some symbols of my own if I don't find candidates among requests. Today I was able to.
One of the symbols I almost included was Westrock (SW). The chart looks pretty good right now, but it is part of the Materials sector and that sector went bad first thing this week, setting up a bearish double top. I felt that was enough to put downside pressure on the stock. However, you should take a look.
The three I chose are from different sectors. Financials and Banks are still looking bullish so I included Nu Holdings (NU). Utilities are also reigniting so we have a stalwart from that sector, Southern Company (SO). Finally I chose a Real Estate sector stock Omega Healthcare Investments (OHI) that looks very promising.
Feel free to send in multiple symbols per week for Reader Request Day all week long.
Tomorrow is the Diamond Mine trading room! Hope to see you there. Registration information is below.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": NU, OHI and SO.
Other requests: WOLF, META, NOW, HFAC and SW.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (10/18/2024):
Topic: DecisionPoint Diamond Mine (10/18/2024) LIVE Trading Room
Recording & Download Link
Passcode: October#18
REGISTRATION for 10/25/2024:
When: October 25, 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 10/21. 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.
Nu Holdings Ltd. (NU)
EARNINGS: 2024-11-13 (AMC)
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
Predefined Scans Triggered: Stocks in a New Uptrend (Aroon)
NU is down -0.13% in after hours trading. I would've liked a breakout here, but it has already been on a pretty good run so we'll log this one as a possible winner that will keep on winning. Despite the long rally, the RSI is not overbought yet. The PMO is on a Crossover BUY Signal that occurred above the zero line. Stochastics are still rising above 80. Relative strength studies are very positive with strongly rising relative strength lines across the board. I like that it is outperforming its group and the group is doing very well. The stop is set around the 50-day EMA at 7.7% or $13.86.
Strong weekly chart based on the long-term rising trend that was only penetrated once with a strong upside reversal to follow. The weekly RSI is not overbought and the weekly PMO is on the rise toward a Crossover BUY Signal. The weekly PMO is also flat well above the zero line signaling pure strength in the intermediate term. The StockCharts Technical Rank (SCTR) is at the top of the hot zone*. Consider a 17% upside target to about $17.57.
*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.
Omega Healthcare Invs, Inc. (OHI)
EARNINGS: 2024-10-30 (AMC)
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.
Predefined Scans Triggered: Stocks in a New Uptrend (Aroon), P&F Ascending Triple Top Breakout, P&F Double Top Breakout and New 52-week Highs.
OHI is up +0.07% in after hours trading. The large bull flag caught my eye. The breakout from the flag implies we will see a rally the height of the flag. I don't know about that, but it certainly puts a bullish spin on the chart. We also have a breakout to new 52-week highs. The RSI is not overbought yet. The PMO is on a Crossover BUY Signal that occurred above the zero line. Stochastics look very bullish above 80. The group is slightly outperforming the SPY. If the group does well, OHI does well as it is showing great leadership against the group. It is consequently outperforming the SPY right now. The stop is set below support at 7.6% or $38.54.
Price is on a strong rising trend coming out of a long-term trading range. The weekly RSI is unfortunately overbought, but it has been for weeks. The weekly PMO has surged above the signal line suggesting more upside to come. The SCTR is in the hot zone. Consider a 17% upside target to about $48.81.
Southern Co. (SO)
EARNINGS: 2024-10-31 (BMO)
The Southern Co is a holding company, which engages in the generation and sale of electricity. It operates through the following segments: Traditional Electric Operating Companies, Southern Power, and Southern Company Gas. The Traditional Electric Operating Companies segment refers to vertically integrated utilities that own generation, transmission and distribution facilities, and supplies electric services in the states of Alabama, Georgia, Florida, and Mississippi. The Southern Power segment constructs, acquires, owns, and manages generation assets such as renewable energy projects and sells electricity in the wholesale market. The Southern Company Gas segment distributes natural gas through natural gas distribution facilities in the states of Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland. The company was founded on November 9, 1945, and is headquartered in Atlanta, GA.
Predefined Scans Triggered: P&F Ascending Triple Top Breakout, Elder Bar Turned Blue, P&F Double Top Breakout, Bearish Harami and New 52-week Highs.
SO is up +0.42% in after hours trading. I really like this stock for exposure to Utilities especially now while it is outperforming the group. Price broke from a trading range and appears ready to continue higher from here. After the breakout, we got a slight pullback to the breakout point and now a resumption of the rally. The RSI is not yet overbought. The PMO is on a Crossover BUY Signal that occurred well above the zero line. Stochastics are rising despite today's decline and reside above 80. Relative strength is good for the group and SO. The stop is set halfway down the previous trading range from August/September at 7.7% or $86.40.
We have a strong rally coming out of a trading range on the weekly chart too. Unfortunately here the RSI is overbought, but as with others, it has been maintaining this condition for weeks. The weekly PMO has surged above the signal line and the SCTR is in the hot zone. Consider a 17% upside target to about $109.52.
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 65% 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