The amount of results from Diamond Scans is thinning out. Two of my scans only turned up one symbol each. Consequently, I expanded the universe I was searching on (I usually only do SP1500, Dow 65 and NDX) and it did get me a few more symbols to look at.
Two of the stocks I liked today were OXM and RH. The problem is they are reporting earnings this week so I can't include them. Keep them on a watch list as they do look interesting.
You won't find any runner-ups as I simply didn't come up with enough choices today. Those selected were from four different sectors. While today's selections are very good, I have less confidence in them given the weakness coming into the market.
In general, it doesn't seem a good time to be adding to our portfolios given the market is weakening so be careful out there. I would make sure to set stops when you open a new position. It probably is a good idea to reevaluate your current stop levels.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": BLCO, BLK, CRSR and CWH.
Diamond Mine Trading Room:
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Topic: DecisionPoint Diamond Mine (12/6/2024) LIVE Trading Room
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Topic: DecisionPoint Diamond Mine LIVE 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.
Bausch & Lomb Corp. (BLCO)
EARNINGS: 2025-02-19 (BMO)
Bausch + Lomb Corp. develops, manufactures, and markets eye health products. It offers over-the-counter supplements, eye care products, ophthalmic pharmaceuticals, contact lenses, lens care, ophthalmic surgical devices, and instruments. The company operates its business through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals and Surgical. The Vision Care/Consumer Health Care segment includes both contact lens and consumer eye care businesses. The Ophthalmic Pharmaceuticals segment consists of a broad line of proprietary pharmaceutical products for post-operative treatments and treatments for a number of eye conditions, such as glaucoma, eye inflammation, ocular hypertension, dry eyes and retinal diseases. The Surgical segment consists of medical device equipment, consumables and instrumental tools and technologies for the treatment of corneal, cataracts, and vitreous and retinal eye conditions, and includes IOLs and delivery systems, phacoemulsification equipment and other surgical instruments and devices necessary for cataract surgery. Bausch + Lomb was founded by John Jacob Bausch and Henry Lomb in 1853 and is headquartered in Vaughan, Canada.
Predefined Scans Triggered: Moved Above Upper Bollinger Band and Moved Above Ichimoku Cloud.
BLCO is down -0.68% in after hours trading. I like this new rally that has taken out the declining trend in the short term. It looks like it's ready to head to the top of the trading channel. The RSI is positive and not overbought. The PMO is about to give us a Crossover BUY Signal. The OBV is showing a positive divergence going into this rally. Stochastics are now above 80. Relative strength for the group isn't great, but it isn't horrible either. BLCO is doing well against the group and most important of all relative strength windows, it is outperforming the SPY. I've set the stop below support at 7.8% or $19.03.
The weekly chart is positive. We're looking for new all-time highs here. The weekly RSI is positive and not overbought. The weekly PMO is surging above the signal line well above the zero line. The StockCharts Technical Rank (SCTR) is in the hot zone* above 70 so it is set up well for the intermediate term.
*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.
Blackrock, Inc. (BLK)
EARNINGS: 2025-01-10 (BMO)
Blackrock, Inc. engages in the provision of investment, advisory and risk management solutions. Its products include single-asset and multi-asset portfolios. The company was founded by Laurence Douglas Fink in 1988 and is headquartered in New York, NY.
Predefined Scans Triggered: Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), P&F double Top Breakout and New 52-week Highs.
BLK is up +0.75% in after hours trading. I like the new rally out of the declining trend. The personality of this stock seems to be leg up, pullback/consolidate, leg up, pullback/consolidate. We're on the next leg up. I'm looking for a breakout. The RSI is positive and not overbought. The PMO is closing in on a Crossover BUY Signal. Stochastics are almost to 80. The group has essentially been outperforming for months. BLK has seen the same outperformance against the SPY. It is really starting to outperform its group of late. I've set the stop beneath the 50-day EMA at 6.5% or $988.36.
Price has broken out of a long-term trading range and is headed higher. The weekly RSI is overbought right now, but it has been for quite a few weeks. The weekly PMO is still rising on a Crossover BUY Signal. The SCTR is in the hot zone right now. Consider a 17% upside target to about $1236.77.
Corsair Gaming Inc. (CRSR)
EARNINGS: 2025-02-11 (AMC)
Corsair Gaming, Inc. designs and supplies hardware components for personal computers. It operates through the Gamer and Creator Peripherals, and Gaming Components and Systems segments. The Gamer and Creator Peripherals segment offers gaming keyboards, mice, headsets, controllers, and gaming gear including capture cards, Stream Decks, USB microphones, studio accessories, and EpocCam software, as well as coaching and training services. The Gaming Components and Systems segment focuses on creating power supply units, or PSUs, cooling solutions, computer cases, DRAM modules, prebuilt, and custom-built gaming PCs. The company was founded by Andrew J. Paul in 1994 and is headquartered in Milpitas, CA.
Predefined Scans Triggered: Elder Bar Turned Blue.
CRSR is down -0.48% in after hours trading. This is a "boom or bust" reversal candidate. That carries extra risk as it could do very well or it could fall apart. I like the breakout from the prior trading range. The RSI is not overbought and the PMO is rising on a Crossover BUY Signal. The PMO is well above the zero line as well. Stochastics are oscillating around 80. The industry group is performing very well against the SPY. CRSR is outperforming its industry group slightly, but most importantly it is outperforming the SPY.The stop is set on the trading range at 7.9% or $7.33.
This is a very beat down stock but it is starting to show signs of life again. The weekly RSI just moved into positive territory. The weekly PMO is rising on a Crossover BUY Signal. It is well below the zero line, but it is beginning to pick up speed to the upside. The SCTR is not in the hot zone due to its beat down status. A trip to the next level of resistance would be a nice gain.
Camping World Holdings, Inc. (CWH)
EARNINGS: 2025-02-19 (AMC)
Camping World Holdings, Inc. operates as a retailer of recreational vehicles (RV) and related products and services. It operates through the following segments: Good Sam Services & Plans, and RV & Outdoor Retail. The Good Sam Services & Plans segment consists of programs, plans, and services that are geared towards protecting, insuring, and promoting the RV lifestyle. The RV & Outdoor Retail segment consists of all aspects of the company's RV dealership and retail operations. The company was founded in 1966 and is headquartered in Lincolnshire, IL.
Predefined Scans Triggered: P&F Double Top Breakout.
CWH is unchanged in after hours trading. It isn't my favorite chart as it is quite jagged in its sideways trading, but I'm looking for a breakout this time around. The RSI is not at all overbought. The PMO is rising after surging above the signal line twice. Stochastics are rising strongly. Relative strength for the group isn't all that great, but CWH is outperforming the SPY on its own and it is showing leadership within the group itself. The stop is set below the 50-day EMA at 7.6% or $22.98.
I do tend to shy away from trading range stocks, but this one has quite a bit of upside potential if it just gets to the top of the zone. The weekly RSI is positive and not overbought. The weekly PMO is on the rise above the zero line on a Crossover BUY Signal. The SCTR just entered the hot zone so I do think we will see it get to the top of this trading range.
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
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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