There were a few themes today when I ran the scans but one in particular was clear...Financials. Banks were in the spotlight but interestingly most didn't show the relative strength against the group that I wanted to see. I did find you a Bank today though. I also added Investment Services and Life Insurance to the list.
Real Estate showed up a little bit. I found a Retail REIT that looks very good moving forward.
Keep your stops in play as the market may stumble here. Semiconductors took a breather today and that upset the market. It is still lined up to do well so I think there is still upside potential on the current rally. If they dive, the market will likely follow.
I also saw some Consumer Staples stocks and a few Utilities. Utilities interest me a great deal as they are reversing off a pullback. I have one Utility in the runner-ups (UGI). I have one Consumer Staple stock in runner-ups (TSN), but overbought SFM also looks good for the watch list.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CNO, CPF, MAC and VIRT.
Runner-ups: HTBI, GL, LNTH, TSN, SFM, CALX and UGI.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (10/11/2024):
Topic: DecisionPoint Diamond Mine (10/11/2024) LIVE Trading Room
Recording & Download Link
Passcode: October#11
REGISTRATION for 10/18/2024:
When: October 18, 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 10/14. 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.
CNO Financial Group Inc. (CNO)
EARNINGS: 2024-11-04 (AMC)
CNO Financial Group, Inc. is an insurance holding company, which engages in developing, marketing, and administering health insurance, annuity, individual life insurance and other insurance products. It operates through the following segments: Bankers Life, Washington National, and Colonial Penn. The Bankers Life segment markets and distributes medicare supplement insurance, interest-sensitive life insurance, traditional life insurance, fixed annuities and long-term care insurance products to the middle-income senior market through a dedicated field force of career agents and sales managers supported by a network of community-based sales offices. The Washington National segment markets and distributes supplemental health including specified disease, accident and hospital indemnity insurance products and life insurance to middle-income consumers at home and at the worksite. The Colonial Penn segment markets primarily graded benefit and simplified issue life insurance directly to customers in the senior middle-income market through television advertising, direct mail, the Internet and telemarketing. The company was founded in 1979 and is headquartered in Carmel, IN.
Predefined Scans Triggered: New 52-week Highs, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, Parabolic SAR Buy Signals, P&F Double Top Breakout and P&F Triple Top Breakout.
CNO is up +0.03% in after hours trading. Today saw a nice breakout to new 52-week highs out of a trading range. The RSI is not overbought yet and we have a nearing PMO Crossover BUY Signal well above the zero line. Stochastics are above 80 now and rising. The Life Insurance group has been hitting it out of the park. CNO is only now showing outperformance against the group and the SPY. There is more upside available here. The stop is set beneath prior lows at 6.6% or $33.43.
We have a solid rising trend on the weekly chart with a breakout from a trading range. Granted the weekly RSI is overbought right now, but it can hold those conditions. The weekly PMO is very strong and the StockCharts Technical Rank (SCTR) is in the hot zone* above 70. Consider a 17% upside target to about $41.89.
*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.
CPB, Inc. (CPF)
EARNINGS: 2024-10-30 (BMO)
Central Pacific Financial Corp. is a bank holding company, which engages in the provision of commercial banking services through its wholly owned subsidiary Central Pacific Bank. The firm offers wealth management, personal and business banking. It also provides loan services for commercial and industrial, real estate, and consumer. The company was founded on February 1, 1982 and is headquartered in Honolulu, HI.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Double Top Breakout and New 52-week Highs.
CPF is down -0.07% in after hours trading. The breakout to new 52-week highs was great. Price is currently in a rising trend channel and it has some time before it will hit the top of the channel. The RSI is not overbought and the PMO is nearing a Crossover BUY Signal well above the zero line. Stochastics just poked above 80. The group is taking off as we all know and it is expressed well by the relative strength line. CPF has been an overall leader within the group over time and is outperforming the SPY right now. The stop is set at support at 7.6% or $27.44.
This is a great breakout from a long-term trading range. The weekly RSI is overbought, but that hasn't bothered it for weeks. The weekly PMO is rising strongly well well above the zero line. The SCTR is in the hot zone. We should see follow through here. Consider a 17% upside target to about $34.75.
Macerich Co. (MAC)
EARNINGS: 2024-11-06 (BMO)
Macerich Co. operates as a real estate investment trust, which engages in the acquisition, ownership, development, redevelopment, management, and leasing of regional and community shopping centers located throughout the United States. The company was founded by Mace Siegel Dana K. Anderson, Arthur M. Coppola and Edward C. Coppola in 1964 and is headquartered in Santa Monica, CA.
Predefined Scans Triggered: Elder Bar Turned Green, Moved Above Upper Price Channel, P&F Double Top Breakout, P&F Triple Top Breakout, New 52-week Highs and Shooting Star.
MAC is up +1.63% in after hours trading. It is a bearish shooting star candlestick today, but based on after hours trading, I don't think we will see a decline tomorrow. I liked the breakout to 52-week highs coming out of a congestion zone that digested the prior rally. The RSI is not overbought so it has upside potential. The PMO looks toppy, but it has actually surged above the signal line. It is well above zero suggesting pure strength. Stochastics turned back up in positive territory and are nearing 80. The group is just starting to outperform right now. Considering this group hasn't been so great, MAC has been a clear outperformer. Imagine if this group gets going what is likely to happen to MAC. The stop is set beneath support at 7.1% or $17.06.
The one problem I see is overhead resistance is nearing on the weekly chart. Other than that it is a good chart. The weekly RSI is not overbought. The weekly PMO bottomed above the zero line and is on a Crossover BUY Signal. The SCTR is in the hot zone. Consider a 17% upside target to about $21.49.
Virtu Financial, Inc. (VIRT)
EARNINGS: 2024-10-24 (BMO)
Virtu Financial, Inc. engages in the provision of trading solutions and liquidity services. It operates through the following segments: Market Making, Execution Services and Corporate. The Market Making segment involves the cash, futures, and options markets across global equities, fixed income, currencies, cryptocurrencies, and commodities. The Execution Services segment includes agency-based, execution-only trading, workflow technology, and trading analytics. The Corporate segment consists of investments in financial services-oriented opportunities and maintains corporate overhead expenses and all other income and expenses that are not attributable to the other segments. The company was founded by Vincent J. Viola and Douglas A. Cifu in 2008 and is headquartered in New York, NY.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Double Top Breakout, New 52-week Highs and Stocks in a New Uptrend (ADX).
VIRT is down -0.60% in after hours trading. Here is another stock breaking to new 52-week highs. The RSI is getting a little overbought so we could see a pause here. The PMO is nearing a Crossover BUY Signal well above the zero line. Stochastics are above 80. The group is doing very well right now and VIRT is performing well against the group and the SPY. The stop is set near support at 7.5% or $30.71.
Overhead resistance is nearing unfortunately so that is another reason we may see a small pullback or pause. The overbought weekly RSI also implies this. The weekly PMO is rising well above the zero line and the SCTR is in the hot zone. I'm expecting a breakout here. Consider a 17% upside target to about $38.84.
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 55% 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