Reader Request Day came in very light today so I opted to run some of my scans to see what I could add. I was thoroughly unimpressed with the results. The market may be inching higher, but broad market selections are getting scarce. We see weakness internally in the DP Alert and it tells us that longs will be difficult to make money on. Nevertheless, I have to present to you some good options and I believe what we have today is interesting.
One subscriber choice was generated as a question for how long to hold, not necessarily to buy. I think the chart has merit and we should see some more upside, but it is near resistance and may be ready to pullback or pause a little bit. We'll discuss.
Another is from the Biotech space which I still like quite a bit. This was a good selection for more upside right away in my opinion, whereas the other one may need some time to percolate.
My choice is Boyd Gaming (BYD) which came through on the Surge Scan. It is performing well right now and looks as if it will continue to outperform.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": BYD, FTAI and TVTX.
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.
Boyd Gaming Corp. (BYD)
EARNINGS: 2025-02-06 (AMC) ** Reported Today **
Boyd Gaming Corp. is a multi-jurisdictional gaming company, which engages in the management and operation of gaming and entertainment properties. It operates through the following segments: Las Vegas Locals, Downtown Las Vegas, Midwest and South, and Online. The Las Vegas Locals segment consists of eight casinos that primarily serve the resident population in the Las Vegas metropolitan area. The Downtown Las Vegas segment refers to the following casinos: California Hotel and Casino, Fremont Hotel and Casino, and Main Street Station Hotel and Casino. The Midwest and South segment includes four land-based casinos, six dockside riverboat casinos, three racinos, and four barge-based casinos that operate in nine states in the Midwest and southern United States. The Online segment includes the operating results of online gaming operations. The company was founded by William Samuel Boyd and Sam Boyd on January 1, 1975 and is headquartered in Las Vegas, NV.
Predefined Scans Triggered: Elder Bar Turned Green, Improving Chaikin Money Flow, New CCI Buy Signals and New 52-week Highs.
BYD is up +2.46% in after hours trading. It just reported earnings after the bell today and it did very well leading into them. After hours trading suggests we will continue to see followthrough. I like the breakout from the sideways trading range to a new 52-week high. The RSI is not yet overbought and the PMO has surged above the signal line. Stochastics turned up on the rally. The group hasn't been performing very well, but BYD is most importantly outperforming the SPY and it also happens to be outperforming the industry group which accounts for its good performance against the SPY. The stop is set beneath the 50-day EMA at 6.9% or $73.14.
We see a strong intermediate-term rising trend that has now taken price out of a trading range. The weekly PMO is getting a bit overbought, but this one can hold those conditions. The weekly PMO has surged above the signal line and the StockCharts Technical Rank (SCTR) is in the hot zone* above 70. Consider a 17% upside target to $91.93.
*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.
FTAI Aviation Ltd. (FTAI)
EARNINGS: N/A
FTAI Aviation Ltd. manufactures, sells, and leases aerospace products. It operates through the Aviation Leasing and Aerospace Products segments. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded on October 23, 2013 and is headquartered in New York, NY.
Predefined Scans Triggered: Filled Black Candles, P&F Triple Top Breakout and P&F Double Top Breakout.
FTAI is up +0.54% in after hours trading. We have a nice rebound after a perilous drop on disparaging news about engine leases according to this subscriber. Analysts are still good with it and it was showcased on Fast Money. I'd still be careful with this one. That's a pretty terrible P/E! The technicals do look good on the chart right now and suggests it will recoup its losses. The RSI is just now in positive territory. The PMO is on a Crossover BUY Signal (though it is very far below the zero line). Stochastics are rising strongly. I am concerned about overhead resistance holding this one back a bit near-term, but technicals sure call for a breakout. We can see that it is currently outperforming the SPY on this excellent rally. It is a filled black candlestick today so you may get a better entry if you want to take a chance on this one. The stop is set about as deep as I can get on the chart without going over 8%. I've opted to set it at 7.7% or $109.66.
This one was overdue for that dastardly decline as it was traveling in a parabolic rally. It has since found its footing and looks as though it could recoup much of the prior losses. The weekly RSI is negative, but rising. The weekly PMO is trying to decelerate from the perilous decline. I'm not thrilled with this choice, but I would say that I would hold it a bit longer and stay true to the 7.7% stop or an 8% stop. I set the upside target to the prior high that I've pointed out on the price chart.
Travere Therapeutics, Inc. (TVTX)
EARNINGS: 2025-02-13 (BMO) ** Reports next Thursday **
Travere Therapeutics, Inc. is a biopharmaceutical company. It engages in the identification, development, commercialization, and distribution of therapies to people living with rare diseases. The firm's products include Chenodal, Cholbam, and Thiola. The company was founded by Martin Shkreli on February 7, 2008 and is headquartered in San Diego, CA.
Predefined Scans Triggered: Elder Bar Turned Green, New 52-week Highs and P&F Double Top Breakout.
TVTX is up +2.15% in after hours trading. I really liked today's breakout from a congestion zone. It has now broken out above two strong levels of overhead resistance. The RSI is positive and not at all overbought. The PMO is making its way higher above the zero line. Stochastics are above 80. Relative strength studies are very positive with all three relative strength lines rising. I'd have liked to have set the stop below the congestion zone, but it would be too deep. I chose 7.8% or $20.15.
Price is in a nice rising trend and broke out into a new trading range. The weekly RSI is overbought, but it has handled these conditions before. Still it is a heads up that it may consolidate soon. The weekly PMO is on a new Crossover BUY Signal. The SCTR is at the top of the hot zone. There is plenty of upside potential on this one.
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 50% 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.
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Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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