It occurred to me Sunday that we had a holiday on Thursday. That has changed the schedule for DP Diamonds slightly. I've moved up picks by one day so you'll four today, ETFs tomorrow and Reader Request Day will be Wednesday (get some symbols into the queue!). No reports on Thursday. DP Diamond Mine on Friday morning like normal with the Recap at the end of the day.
Next week is our final week here at DecisionPoint.com. The schedule will be normal with the last Recap going out that final Friday. I will hold a Diamond Mine trading room that morning.
As far as picks today, I found that Semiconductors outperformed greatly and that gave us some to look at in the scans. I found one with a very high PMO value. The rest didn't make my cut.
The Surge Scan seemed to come through with the best selections today. There were lots of overbought readings there but I did find some that didn't have overbought RSIs yet.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": ALGM, BALL, LITE and WT.
Runner-ups: BKE and WEX.
Diamond Mine Trading Room:
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When: June 20, 2025 09:00 AM Pacific Time (US and Canada)
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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.
Allegro Microsystems Inc. (ALGM)
EARNINGS: 2025-07-31 (BMO)
Allegro MicroSystems, Inc. engages in the development and manufacture of sensor integrated circuits ("ICs") and application-specific analog power ICs. Its sensor ICs enable customers to precisely measure motion, speed, position and current, while its power ICs include high-temperature and high-voltage capable motor driver, power management and light emitting diode driver ICs. The company was founded on March 30, 2013 and is headquartered in Manchester, NH.
Predefined Scans Triggered: Elder Bar Turned Green, Moved Above Upper Keltner Channel and P&F Double Top Breakout.
ALGM is unchanged in after-hours trading. As noted in the opening I had a handful of Semiconductors to choose from, but this had the best looking chart. We have a prior bull flag that I didn't annotate, followed by the formation of another flag. Today saw a huge breakout from that flag. The RSI isn't overbought yet. The PMO has surged above the signal line. Stochastics are rising very close to 80. Relative strength is excellent for the group now and ALGM is showing clear leadership as it outperforms both the group and the SPY. The stop is set as close to support as possible at 7.9% or $28.72.
We do have some strong overhead resistance ahead for ALGM, but the chart does seem to imply we'll get a breakout. The weekly RSI is positive and the weekly PMO looks especially bullish on its rise above the zero line. The StockCharts Technical Rank (SCTR) is at the top of the hot zone* above 70. I've marked the target to the 2022 high.
*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.
Ball Corp. (BALL)
EARNINGS: 2025-07-31 (BMO)
Ball Corp. engages in the supplies of aluminum packaging for the beverage, personal care, and household products industries. It operates through the following segments: Beverage Packaging North and Central America, Beverage Packaging South America, and Beverage Packaging Europe, Middle East and Africa (EMEA). The Beverage Packaging North and Central America segment includes multi-year supply contracts to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. The Beverage Packaging South America segment includes beverage containers in South America, and the manufacture of substantially all the metal beverage containers in Brazil. The Beverage Packaging EMEA segment consists of metal beverage containers in Europe, and other packaging materials used by the European beer and carbonated soft drink industries. The company was founded by Edmund Burke Ball, Frank Clayton Ball, George A. Ball, Lucius Lorenzo Ball, and William Charles Ball in 1880 and is headquartered in Westminster, CO.
Predefined Scans Triggered: Elder Bar Turned Green, Stocks in a New Uptrend (ADX), Moved Above Upper Bollinger Band, Moved Above Upper Price Channel, P&F Double Top Breakout and P&F Bearish Signal Reversal.
BALL is up +1.86% in after-hours trading. I really liked today's strong breakout above resistance and the 200-day EMA. It still must get above the 2025 high, but I think it looks good. The RSI is positive and not overbought yet. The PMO is flat above the signal line indicating pure strength and it has surged above the line today. Stochastics are rising again while holding above 80. The one problem is the group isn't performing all that well relatively. However, BALL is outperforming the SPY anyway and it is outperforming the group presently. The stop is set at support at the previous lows at 7.9% or $51.57.
I really like this bounce off strong support. The weekly RSI is in positive territory. The weekly PMO is rising on a Crossover BUY Signal. It isn't above the zero line, but this rally looks solid. The SCTR is not in the hot zone, but it is improving quickly.
Lumentum Holdings Inc. (LITE)
EARNINGS: 2025-08-13 (AMC)
Lumentum Holdings, Inc. engages in the provision of optical and photonic products. It operates through the Cloud and Networking, and Industrial Tech segments. The Cloud and Networking segment refers to a portfolio of optical and photonic components, modules, and subsystems. The Industrial Tech segment includes solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers. The company was founded on February 10, 2015 and is headquartered in San Jose, CA.
Predefined Scans Triggered: Elder Bar Turned Green, P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
LITE is down -0.24% in after-hours trading. I liked the breakout and follow-through rally. It is also nice that it is holding a short- and intermediate-term rising trend. The RSI is not yet overbought. The PMO has surged (bottomed) above the signal line (hard to see so take my word for it). Stochastics are holding above 80 and have started to rise again. The group is performing alright, could be better. LITE is outperforming both the SPY and the group. The stop is set beneath support at 7.9% or $79.00.
We have a strong "V" Bottom pattern on the weekly chart that does imply we'll get an eventual breakout. The weekly RSI is positive and not overbought. The weekly PMO looks very bullish on its Crossover BUY Signal above the zero line.
WisdomTree Investments, Inc. (WT)
EARNINGS: 2025-08-01 (BMO)
WisdomTree, Inc. engages in the provision of a diversified suite of exchange traded products (ETP), models, solutions, and products leveraging blockchain technology. It also develops digital or blockchain-enabled mutual funds and tokenized assets, as well as blockchain-native digital wallet, under the name of WisdomTree Prime. The company was founded by Jonathan Laurence Steinberg on September 19, 1985 and is headquartered in New York, NY.
Predefined Scans Triggered: Elder Bar Turned Green, Moved Above Upper Keltner Channel, Moved Above Upper Bollinger Band and P&F Low Pole.
WT is unchanged in after-hours trading. I liked the breakout from the really strong base or somewhat rounded bottom. We also have a new Golden Cross LT Trend Model BUY Signal. The RSI is getting overbought, but it can hold those conditions in a good bull market move like it is experiencing right now. The PMO has surged above the signal line. Stochastics are rising above 80. Relative strength is a problem for the group right now, but given WT's outperformance against the SPY, I'll forgive it. It is also outperforming the group as you'd expect given it is outperforming the SPY and the group is not. The stop is set between the 20/50-day EMAs at 7.7% or $9.58.
I really like the price reversal off support at the 2023 highs. We have the 17-week EMA crossing above the 43-week EMA. The weekly RSI is positive and not overbought. The weekly PMO is rising on a Crossover BUY Signal. It is now traveling above the zero line. The SCTR just moved into the hot zone.
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 60% 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.
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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)
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