The scans did produce some good results, but not very many. I do not have any runner-ups for you today as I just wasn't enamored of enough charts to share more ideas. Be careful with your exposure.
I was tempted to go with shorts today and maybe I should have given we are in a declining trend in the market right now, but the last two days of rally tell me that a breakout isn't out of the question. If ETF Day comes up tomorrow on a decline, I'll see what I can find as inverses for hedges or I will just give you a stock or two if ETFs just don't find their way into my scan results.
Keep those stops in play and honor them. The market is so overdue for a big decline.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": BYRN, INVX, SPGI and UGI.
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.
Byrna Technologies Inc (BYRN)
EARNINGS: 2025-04-03 (BMO)
Byrna Technologies, Inc. is a less-lethal self-defense technology company, which engages in the business of developing, manufacturing, and selling innovative less-lethal personal security solutions. It operates through the following geographical segments: the United States, South Africa, Europe, South America, and Asia, and Canada. The company was founded on March 1, 2005 and is headquartered in Andover, MA.
Predefined Scans Triggered: Bearish Harami, P&F Triple Top Breakout and P&F Double Top Breakout.
BYRN is unchanged in after hours trading. This one came from the Diamond PMO Scan when I opened up the universe I was scanning. It had a terrible day, but I like the breakout followed by this snapback to support. It did well with earnings so we should see some upside here. The RSI is not overbought. The PMO is still rising toward a Crossover BUY Signal. Stochastics are rising. The group isn't performing very well, but BYRN is outperforming the group and the SPY. I've set the stop as close to the 20-day EMA as possible at 7.9% or $29.77.
I really like the weekly chart with its breakout above the 2021 high. The weekly RSI is positive and not yet overbought. The weekly PMO is rising and is reading very high at 35.37. The StockCharts Technical Rank (SCTR) is at the top of the hot zone*. Consider a 17% upside target to about $37.83.
*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.
Innovex International, Inc. (INVX)
EARNINGS: 2025-02-24 (AMC)
Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.
Predefined Scans Triggered: None.
INVX is unchanged in after hours trading. I see an elongated bull flag formation that has been confirmed with a breakout. It looks ready to form another flagpole. It is somewhat range bound, but I'm looking for a breakout primarily due to the very favorable PMO which is nearing a Crossover BUY Signal well above the zero line. The RSI is not at all overbought. Stochastics are rising strongly on this rally. Relative strength lines are all rising. The stop is set at the 50-day EMA at 7.9% or $15.63.
This is a stock that has been slumping for some time, but it did manage to form a bullish falling wedge and price is again trying to break away from it. The weekly RSI just turned up in positive territory. The weekly PMO is rising nicely toward the zero line. The SCTR isn't in the hot zone, but it is close enough. There is plenty of upside potential if it can breakout here.
S&P Global Inc. (SPGI)
EARNINGS: 2025-02-11 (BMO) ** Reported Today **
S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. The Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. The Ratings segment is involved in credit ratings, research, and analytics, offering investors and other market participants information, ratings, and benchmarks. The Commodity Insights segment focuses on information and benchmark prices for the commodity and energy markets. The Mobility segment offers solutions serving the full automotive value chain including vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies. The Engineering Solutions segment engages in advanced knowledge discovery technologies, research tools, and software-based engineering decision engines to advance innovation, maximize productivity, improve quality, and reduce risk. The company was founded by James H. McGraw and John A. Hill in 1917 and is headquartered in New York, NY.
Predefined Scans Triggered: Elder Bar Turned Green, New CCI Buy Signals, Moved Above Upper Keltner Channel, New 52-week Highs, Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, Parabolic SAR Buy Signals, P&F Double Top Breakout and Hanging Man.
SPGI is down -0.09% in after hours trading. Today's breakout on earnings looks good. Price even closed near the top of the candlestick. The RSI did just move into overbought territory, but it could get more overbought based on July and September. The PMO has surged (bottomed) above the signal line. Stochastics have turned up in positive territory. We see rising relative strength lines across the board. I've set the stop beneath the 50-day EMA at 6.5% or $505.37.
We can see how price has broken out of a trading range. The weekly RSI is positive and the weekly PMO is rising toward a Crossover BUY Signal. The SCTR is very close to the hot zone and is rising. Consider a 17% upside target to about $632.40.
UGI Corp Holding Co. (UGI)
EARNINGS: 2025-05-07 (AMC)
UGI Corp. is a holding company, which engages in the distribution, transportation, storing, and marketing of energy products and services. It operates through the following segments: AmeriGas Propane, UGI International, Midstream and Marketing, Utilities, and Corporate and Other. The AmeriGas Propane segment consists of the propane distribution business of AmeriGas Partners. The UGI International segment focuses on LPG distribution businesses conducted by its subsidiaries and affiliates. The Midstream and Marketing segment is involved in the energy-related businesses through its wholly owned subsidiary, Energy Services. The Utilities segment includes the natural gas and electricity distribution businesses directly and through its wholly owned subsidiaries. The Corporate and Other segment refers to the net expenses of captive general liability insurance company, corporate headquarters facility, and unallocated corporate and general expenses. The company was founded on June 1, 1882, and is headquartered in King of Prussia, PA.
Predefined Scans Triggered: Elder Bar Turned Green, Moved Above Upper Keltner Channel and P&F Double Top Breakout.
UGI is down -0.31% in after hours trading. On Friday I made Utilities my Sector to Watch so I was happy to see a Utility on the list today. We have a strong rising trend with a flat PMO above the signal line indicating pure strength. The RSI isn't quite overbought. There is a PMO Surge above the signal line. Stochastics have just ticked upward. The group is outperforming the SPY and UGI is showing excellent relative strength to the group and the SPY. I've set the stop as close to the 50-day EMA as possible at 8% or $29.56.
We have a nice cup shaped bottom with a rising trend. The weekly RSI is overbought so we could see a slow down on the rally, but given the very positive weekly PMO, it should continue its rising trend. The SCTR is well within the hot zone above 70. We have a strongly rising OBV.
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 15% 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