Well today's ETFs were easy to pick as they were the only decent ones that came through on my scans today. I did a perusal of our ETF Tracker on our website (You'll find the ChartList on the left hand side of the Blogs and Links page) to see if there were any others with promise. Unfortunately there were no good choices.
The market is still very weak but it is in snapback territory and could see a bit more upside before it's all through. I don't see a rousing rally ahead, but enough of one that I opted not to include any inverse ETFs today. None of them came through on my scans.
I'm not fully enamored with today's selections so take them with a grain of salt. Two of them are dependent on a falling Dollar and I'm not sure how much longer the Dollar will show weakness. It may be turning up right now so upside for CPER and SLV may be limited.
Interest rates do appear to be on the rise again so I included the interest rate hedge PFIX as a choice.
Reader Request Day is tomorrow! Get your symbols in before 1:00p PT to have them considered. I'll take longs or shorts!
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CPER, PFIX and SLV.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (3/7/2025):
Topic: DecisionPoint Diamond Mine (3/7/2025) LIVE Trading Room
Download and Recording Link
Passcode: March#7th
REGISTRATION for 3/14/2025:
When: March 14, 2025 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 3/10. 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.
United States Copper Fund (CPER)
EARNINGS: N/A
CPER tracks a rules-based index of copper futures contracts selected based on the shape of the copper futures curve. Click HERE for more information.
Predefined Scans Triggered: Filled Black Candles, P&F Double Top Breakout and P&F Bullish Triangle.
CPER is up +0.60% in after hours trading. Today saw a nice breakout form a messy trading range. It was a filled black candlestick so we could see a small decline before it makes its way higher, but I see this as a breakout with a mechanical pullback that should pave the way for a rally. We'll see. The RSI is positive and not overbought. The PMO is rising on a Crossover BUY Signal well above the zero line. Stochastics have turned up in positive territory. Relative strength is excellent. The stop is set beneath support at 7.2% or $28.04.
We have a nice base that has developed with a rounded bottom or even a non-textbook double bottom (typically double bottoms are reversal patterns and therefore should come at a low not a top). The weekly RSI is positive and not overbought yet. The weekly PMO is rising above the zero line on a Crossover BUY Signal. The StockCharts Technical Rank (SCTR) is at the top of the hot zone*. Consider a 17% upside target to about $35.36.
*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.
Simplify Interest Rate Hedge ETF (PFIX)
EARNINGS: N/A
PFIX is actively managed to provide a hedge against a sharp increase in long-term interest rates. The fund holds OTC interest rate options, US Treasurys, and US Treasury Inflation-Protected Securities (TIPS). Click HERE for more information.
Predefined Scans Triggered: P&F Low Pole and Entered Ichimoku Cloud.
PFIX is up +0.61% in after hours trading. I wish I'd found this one a bit sooner as the rally has been going on for some time. I like this bounce off support and the small breakout we saw today. The RSI is positive and not at all overbought. The PMO just had a positive Crossover BUY Signal. Stochastics are rising strongly. Relative strength is excellent. The stop is set beneath the 200-day EMA and could be set a bit deeper if you like. I've chosen 7.1% or $47.07.
As noted above it has bounced off a good area of support. The declining trend is still intact but the chart is beginning to mature bullishly. The weekly RSI just entered positive territory. The weekly PMO has decelerated and is getting ready to turn back up above the zero line. The SCTR is excellent at 98.3%. I'd look for a test of overhead resistance.
iShares Silver Trust (SLV)
EARNINGS: N/A
SLV tracks the silver spot price, less expenses and liabilities, using silver bullion held in London. Click HERE for more information.
Predefined Scans Triggered: New CCI Buy Signals.
SLV is up +0.07% in after hours trading. I didn't annotate it, but I see a large cup with handle coming out of the October high. Price is very near a breakout. The RSI is positive and not overbought. The PMO is on a new Crossover BUY Signal. Stocahstics are almost above 80 and relative strength is excellent. As long as the Dollar remains weak, SLV should have an easy time of it. If not, it will be slow going indeed. I've set the stop beneath support at 7.7% or $27.89.
We have a solid rising trend on the weekly chart. The weekly RSI is positive and not overbought. The weekly PMO has turned up and is nearing a Crossover BUY Signal. The OBV is rising with price. The SCTR is at the top of the hot zone. Consider a 17% upside target to about $35.36.
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 10% 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 2025 DecisionPoint.com
Watch the latest episode of DecisionPoint Trading Room with Carl Swenlin & 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