I have one reader that deserves a gold star today on his homework for Reader Request Day. He was the only reader to submit requests and he did a great job. So much so that I didn't add any of my own today. All three are "Diamond in the Rough" material.
We have a Biotech, Financial and a Semiconductor to fill out today's three. Don't forget to send in your requests! We only have a few more Reader Request Days left.
Tomorrow is the Diamond Mine trading room so be sure to register below.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": AMGN, CRF and NVMI.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (5/23/2025):
Topic: DecisionPoint Diamond Mine (5/23/2025) LIVE Trading Room
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Passcode: May#23rd
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When: May 30, 2025 09:00 AM Pacific Time (US and Canada)
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.
Amgen, Inc. (AMGN)
EARNINGS: 2025-08-05 (AMC)
Amgen, Inc. is a biotechnology company, which engages in the discovery, development, manufacture, and marketing of human therapeutics. The company was founded by William K. Bowes, Jr., Franklin Pitcher Johnson, Jr., George B. Rathmann, and Joseph Rubinfeld on April 8, 1980 and is headquartered in Thousand Oaks, CA.
Predefined Scans Triggered: New CCI Buy Signals.
AMGN is down -0.23% in after hours trading. The large bullish falling wedge got my attention on this one. We have now gotten the requisite breakout from the pattern. Usually you'll see follow-through. The RSI has just moved into positive territory. The PMO is below the zero line, but it is on a Crossover BUY Signal and is rising with price. Stochastics look very good well above 80 and still rising. Relative strength lines are all rising so the group and AMGN are outperforming the SPY. The stop is set below support at 7.6% or $261.99.
Price did not have to test support before rebounding and that is a bullish sign. Unfortunately, past that, it isn't that great of a weekly chart. The weekly RSI is rising, but is still in negative territory. The weekly PMO is still in decline, although it is decelerating somewhat. The StockCharts Technical Rank (SCTR) is well outside the hot zone*. It does look fairly good though as it is rising quickly. Keep this in the short-term timeframe for now.
*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.
Cornerstone Total Return Fund Inc. (CRF)
EARNINGS: N/A
Cornerstone Total Return Fund, Inc. is an open-end, diverse management organization. Its primary goal is to pursue capital growth, with current income as a secondary goal. The corporation makes investments in a variety of industries, including real estate, utilities, industrials, health care, financial services, telecommunication networks, and information systems.
Predefined Scans Triggered: Elder Bar Turned Green and P&F High Pole.
CRF is unchanged in after hours trading. The yield blew me away on this one. It is probably worth researching to see how accurate it is. This is a nice bottoming formation. Price has gotten above the 200-day EMA and is very close to overcoming resistance. There is a new Silver Cross BUY Signal of the 20/50-day EMAs. The RSI is positive and not overbought. The PMO is rising strongly on a Crossover BUY Signal above the zero line. Stochastics are at the top of the range and are still rising. Relative strength is improving for the stock. The stop is set beneath the 20/50-day EMAs at 6.7% or $6.90.
We have a bullish "V" Bottom on the weekly chart. The bounce came off strong support. The weekly RSI just moved into positive territory. The weekly PMO is on the rise. The SCTR is not in the hot zone, but it is rising and should move into momentarily.
Nova Measuring Instruments Ltd. (NVMI)
EARNINGS: 2025-08-07 (BMO)
Nova Ltd. provides metrology solutions for the semiconductor manufacturing industry. Its product portfolio includes dimensional metrology, modeling & software, materials metrology, and chemical metrology. The company was founded by Giora Dishon and Moshe Finarov in May 1993 and is headquartered in Rehovot, Israel.
Predefined Scans Triggered: New CCI Buy Signals, Moved Above Upper Keltner Channel, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel, P&F Double Top Breakout and P&F Triple Top Breakout.
NVMI is up +0.21% in after-hours trading. I really liked today's strong breakout move. We also see that price is in a rising trend. Lots of volume is coming in on this rally. The RSI is positive and not overbought. The PMO is rising strongly above the zero line indicating new strength. Stochastics are very bullish rising strongly above 80. Relative strength is excellent right now for Semiconductors. NVMI is showing great leadership based on its rising relative strength line against the group. It is also doing a great job at outperforming the SPY right now. The stop is set at gap support and the 200-day EMA at 7.8% or $200.85.
The weekly chart shows a strong bounce off support. The weekly RSI is back in positive territory. The weekly PMO is rising again. The SCTR is well within the hot zone. Very nice upside potential if it can recapture all-time highs.
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 65% 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