With the holiday this week I wasn't surprised that I didn't get any reader requests so I was prepared to run the scans. The scans had some good stuff in there, but I am still feeling bearish about January so proceed with caution on expanding your portfolio.
I had two Semiconductors hit the list, but I don't like the industry group's chart very much as I see upside potential as likely limited. The two stocks were MXL and NVDA. I did include MXL as a runner-up for your viewing.
One of today's selections is a new issue so I don't have a great deal of data for analysis, but there is enough. It is a reversal candidate which I did want to avoid, but the rest of the chart looks very interesting.
Stay safe and enjoy the rest of your holiday! I will be doing a Recap tomorrow, but there will be no trading room. The DP Alert Weekly Wrap will also go out tomorrow.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CON, GM and NATL.
Runner-ups: MXL, JBT, EQH and PTEN.
Diamond Mine Trading Room:
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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.
Concentra Group Holdings Parent Inc. (CON)
EARNINGS: None Listed
Concentra Group Holdings Parent, Inc. provides occupational health services. The firm operates through the following segments: Occupational Health Centers, Onsite Health Clinics and Other Businesses. The Occupational Health Centers segment provides occupational health services at 547 health center facilities across the United States. The Onsite Health Clinics segment delivers occupational health services and/or employer-sponsored primary care services at an employer's workplace. The Other Businesses segment is comprised of several complementary services to core occupational health services offering and includes ocncentra telemed, concentra pharmacy and concentra medical compliance administration. The company was founded in 1979 is headquartered in Mechanicsburg, PA.
Predefined Scans Triggered: P&F High Pole.
CON is unchanged in after hours trading. This is a trading range play. Price is coming off the bottom of its trading range and is setting up a triple bottom formation. This is a reversal candidate so keep close tabs on it should the market take a turn for the worse. The RSI just moved into positive territory and the PMO is rising toward a Crossover BUY Signal. As a reversal candidate, the PMO is in negative territory. Tread carefully. Stochastics are now in positive territory. Relative strength is rising in all three windows. The stop is set beneath support at 7.7% or $19.01.
Not much to view on the weekly chart as the weekly PMO hasn't calculated yet. It is a neutral chart. It is range bound, but is coming off the bottom of the range. It did not have to test the support line before reversing. The StockCharts Technical Rank (SCTR) is not yet in the hot zone* but remember this is a reversal candidate.
*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.
General Motors Co. (GM)
EARNINGS: 2025-01-28 (BMO)
General Motors Co. engages in the designing, manufacturing, and selling of trucks, crossovers, cars, and automobile parts, and in providing software-enabled services and subscriptions. It operates through the following segments: GMNA, GMI, Cruise, and GM Financial. The company was founded by William C. Durant on September 16, 1908 and is headquartered in Detroit, MI.
Predefined Scans Triggered: Bullish MACD Crossovers.
GM is down -0.07% in after hours trading. We have an excellent reversal off strong support that suggests we will see it challenge prior highs. The RSI just moved into positive territory. The PMO is rising toward a Crossover BUY Signal. Stochastics are nearly above 80 and relative strength is going GM's way. The Autos industry group has been performing well mainly on the back of Tesla (TSLA). Looks like GM is ready to join in. The stop is set deeply because I wanted to get it as close to support as possible. I've set it at 8% or $49.84.
We have a nice rising trend that is not parabolic. This recent bounce preserved it. The weekly RSI is holding in positive territory and the SCTR is in the hot zone*. The weekly PMO is still in decline, but it has decelerated.
NCR Atleos Corp. (NATL)
EARNINGS: 2025-02-12 (AMC)
NCR Atleos Corp. engages in the provision of custom computer programming services. It operates under the following segments: Self-Service Banking, Payment and Network, and Telecommunications and Technology Segments. The Self-Service Banking segment includes financial solutions such as ATM hardware and software, installation, maintenance, and managed and professional services. The Payment and Network segment offers a network of ATMs and multi-functioning financial services kiosks. The Telecommunications and Technology Segment covers managed network and infrastructure services to enterprise clients. The company was founded in 1884 and is headquartered in Atlanta, GA.
Predefined Scans Triggered: New CCI Buy Signals, New 52-week Highs, Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
NATL is down -0.37% in after hours trading. Price is bouncing strongly off the top of a prior trading range. It is breaking out again likely ready to start a new trading range. The RSI is positive and not yet overbought. The PMO is nearing a Crossover BUY Signal above the zero line. Stochastics are now above 80. Relative strength for the group is neutral, but NATL is outperforming the group and the SPY right now. The stop is set beneath the 20-day EMA at 7.1% or $32.86.
We have a nice breakout to new all-time highs. The weekly RSI is a little bit overbought, but it will probably be getting more overbought on this breakout move. The weekly PMO is very positive. The SCTR is within the hot zone. Consider a 17% upside target to about $41.39.
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 35% 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)
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