We got the snapback that I did not expect today as bargain hunters entered the arena. I don't believe this will last.
Readers came up empty. I had four requests, but I wasn't enamored of the charts. Three out of the four had declining PMOs. I have listed them for you under today's selections.
So I had to branch out on my own. The scans produced, but only on the short side so I found three shorting opportunities. I have to say nearly every stock that was picked up by the Diamond Dog Scan looked bearish enough to short. I could've presented any number of them. I've listed my runner-ups for your review too.
We'll see what Santa has in store! Based on some feedback, I believe I will cancel the Diamond Mine that is after Christmas. If the market looks interesting next week, I hold it, but for now let's plan on it not happening.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": SHORTS: AMN, EL and ENPH.
Runner-ups: SHORTS: AES, ACLS, CPRI, XRAY, THS and CVI.
Reader Requests: PYPL, GKOS, IMMR and BABA.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (12/13/2024):
Topic: DecisionPoint Diamond Mine (12/13/2024) LIVE Trading Room
Download & Recording Link
Passcode: December#13
REGISTRATION for 12/20/2024:
When: December 20, 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 12/16. 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.
AMN Healthcare Services, Inc. (AMN)
EARNINGS: 2025-02-20 (AMC)
AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to healthcare facilities across the nation. Its workforce solutions include managed services programs and recruitment process outsourcing. It operates through the following segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment includes travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions businesses. The Physician and Leadership Solutions segment offers locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement businesses. The Technology and Workforce Solutions segment focuses on language interpretation, vendor management systems, workforce optimization, recruitment process outsourcing, education, credentialing and flex pool management businesses. The company was founded on November 10, 1997 and is headquartered in Dallas, TX.
Predefined Scans Triggered: P&F Double Bottom Breakdown, P&F Descending Triple Bottom Breakdown and New 52-week Lows.
AMN is up +3.14% in after hours trading so you could get a better entry tomorrow on this dog. Today it broke down to new 52-week lows. It has already been in a terrible declining trend. The RSI is very negative and not really oversold yet. The PMO topped well beneath the zero line and is headed toward a Crossover SELL Signal. Stochastics are very weak below 20. Relative strength is showing weakness as all lines are trending lower. The stop is set arbitrarily at 7.2% or $24.60.
Price just continues to move lower in a solid declining trend. The weekly RSI is oversold, but can certainly get more so. The weekly PMO is spiraling lower very far beneath the zero line. The StockCharts Technical Rank (SCTR) is in the basement well outside of the hot zone*. Consider a 17% downside target to about $19.04.
*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.
Estee Lauder Cos. (EL)
EARNINGS: 2025-02-04 (BMO)
The Estée Lauder Companies, Inc. engages in the manufacture of skin care, makeup, fragrance and hair care products. It sells products under Estée Lauder, Clinique, Origins, MAC, Bobbi Brown, La Mer, Jo Malone London, Aveda and Too Faced. Its channels consist of department stores, multi-brand retailers, upscale perfumeries and pharmacies, and prestige salons and spas. The company was founded by Estee Lauder and Joseph Lauder in 1946 and is headquartered in New York, NY.
Predefined Scans Triggered: Bearish MACD Crossovers, P&F High Pole and Entered Ichimoku Cloud.
EL is up +0.01% in after hours trading. It is sliding fast after failing to overcome resistance at the September low. The RSI has entered negative territory and the PMO has topped and is headed for a Crossover SELL Signal. Stochastics are diving lower and we can quite a bit of volume on the selling based on the tumbling OBV. Relative strength is failing across the board. The stop was set as close to overhead resistance as I could get it at 7.8% or $80.52.
EL established a declining trend channel and it doesn't look ready to leave it at this point except to say that the weekly PMO is on a new Crossover BUY Signal. This doesn't look like a good signal now that price failed to overcome resistance. The SCTR is close to zero and the declining trend on the OBV is confirming the current decline. If it can get back to prior support, it would be an over 17% gain.
Enphase Energy Inc. (ENPH)
EARNINGS: 2025-02-04 (AMC)
Enphase Energy, Inc. is a global energy technology company, which engages in the business of designing, developing, manufacturing, and selling home energy solutions that manage energy generation, energy storage, control, and communications on one intelligent platform. It operates through the following geographical segments: the United States, the Netherlands, and Others. The company was founded by Raghuveer R. Belur and Martin Fornage in March 2006 and is headquartered in Fremont, CA.
Predefined Scans Triggered: P&F Double Bottom Breakdown and New CCI Sell Signals.
ENPH is up +0.30% in after hours trading. Price hit overhead resistance and failed to break out. This is an aggressive area of the market and I suspect it will really struggle should this decline get going. The RSI is negative and not yet oversold. The PMO has topped well beneath the zero line and Stochastics are below 20. ENPH isn't that poor a performer against the group so there may be some Renewable Energy stocks that look even worse. The group is not performing well and ENPH is underperforming the market. The stop is set as close to the 20-day EMA as I could get it at 7.7% or $70.86.
Price dropped from the prior trading range and hasn't recovered. The weekly RSI is negative and the weekly PMO is falling. The SCTR is almost at zero. There is a lot of weakness here. If it can challenge the prior low it would be an over 19% gain.
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
(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