Today the Diamond Dog Scan which finds shorts, only had one result. This tells me the market is fairly healthy at the moment and could see more upside ahead.
The rest of the scans were mostly productive. I have a few runner-ups in addition to today's "Diamonds in the Rough".
One of the themes I noticed was Financials, Banks in particular. Many of them have bull flags and look to be set up well. I picked my favorite, but you can go to your favorite Bank stocks and take a look.
I included a Semiconductor today as the market does look as if it will move higher from here. I like having an aggressive position to round out today's selections.
We also have a Discretionary stock that could also do well moving forward given the market's relentless climb higher. It was my favorite chart today. It came up in the Diamond PMO Scan and has one of the highest PMO values.
The final stock is in Materials which I'm bullish about right now so this also gives us good coverage today.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": DAN, LSCC, SEE and UMBF.
Runner-ups: NYMT, HASI, RHP and IBOC.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (6/6/2025):
Topic: DecisionPoint Diamond Mine (6/6/2025) LIVE Trading Room
Download and Recording LINK
Passcode: June#6th
REGISTRATION for 6/13/2025:
When: June 13, 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.
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.
Dana Inc. (DAN)
EARNINGS: 2025-07-31 (BMO)
Dana, Inc. engages in the manufacture, distribution, and sale of technology drive and motion products, sealing solutions, thermal-management technologies, and fluid-power products. It operates through the following segments: Light Vehicle, Commercial Vehicle, Off-Highway, and Power Technologies. The Light Vehicle segment includes drivetrain systems and components for passenger cars, crossovers, sport utility vehicles, vans, and light trucks. The Commercial Vehicle segment consists of drivetrain and tire-pressure management systems, as well as genuine service parts for medium and heavy-duty commercial vehicles. The Off-Highway segment offers drivetrain systems and individual product solutions under the Spicer brand, and motion systems for associated machine working functions and stationary industrial equipment under the Brevini brand. The Power Technologies segment consists of sealing solutions and thermal management technologies for reducing fuel consumption and emissions. The company was founded by Clarence W. Spicer on April 1, 1904 and is headquartered in Maumee, OH.
Predefined Scans Triggered: New 52-week Highs, Filled Black Candles and P&F Double Top Breakout.
DAN is unchanged in after-hours trading. The rising trend channel and breakout are what guided my eye toward this one. It also helped that it had a high StockCharts Technical Rank (SCTR) and the highest PMO value of the scan results today. This is a winner that should keep on winning. The RSI is not yet overbought, but it is close so we may see some consolidation. Although we can see in the past this stock can stay in overbought territory for some time. The PMO gave us a new Crossover BUY Signal today. It is flat above the zero line which implies pure strength. Stochastics are above 80. I really like the relative strength lines which have been rising for months. The stop is set below the last bottom at 7.9% or $16.02.
It is at the top of long-term trading range which could be a problem, but the "V" Bottom is very bullish. We got the breakout above the left side of the "V" which fulfills the pattern, but I see more upside ahead given the positive daily chart. We also have a positive RSI and rising weekly PMO on a Crossover BUY Signal above the zero line. The SCTR is in the hot zone* above 70. If we get the breakout, there is plenty of upside potential.
*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.
Lattice Semiconductor Corp. (LSCC)
EARNINGS: 2025-08-04 (AMC)
Lattice Semiconductor Corp. engages in the business of developing technologies that are monetized through differentiated programmable logic semiconductor products, system solutions, design services, and licenses. It also offers silicon-based and silicon-enabling products, evaluation boards, development hardware, and related intellectual property licensing, services, and sales. The company was founded in 1983 and is headquartered in Hillsboro, OR.
Predefined Scans Triggered: None.
LSCC is down -0.47% in after-hours trading. I like this new rally above both the 20/50-day EMAs. I wanted exposure to Semiconductors and this one came up so I included it. Given relative strength of this group, we should probably be exposed to this area of the market. The RSI has moved into positive territory. The PMO is on a new Crossover BUY Signal. Stochastics are almost above 80. Relative strength for LSCC is good. We are seeing new rises in both relative strength lines. The stop is set beneath support at 7.8% or $47.26.
There is a large bullish falling wedge on the weekly chart that implies we'll see an upside breakout. The weekly RSI is not positive, but it is rising. The weekly PMO has turned up and is already close to a Crossover BUY Signal. The SCTR is not in the hot zone so there is still work to do. There is plenty of upside potential.
Sealed Air Corp New (SEE)
EARNINGS: 2025-08-11 (BMO)
Sealed Air Corp. engages in the provision of food safety and security, facility hygiene, and product protection services. It operates through the Food and Protective segments. The Food segment services perishable food processors in fresh red meat, smoked and processed meat, poultry, seafood, plant-based, and dairy markets. The Protective segment offers packaging solutions that are utilized across global markets and are valuable to e-Commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing. The company was founded by Alfred W. Fielding and Marc Chavannes in 1960 and is headquartered in Charlotte, NC.
Predefined Scans Triggered: Filled Black Candles and P&F Low Pole.
SEE is unchanged in after-hours trading. I liked the breakout from the congestion zone above the 200-day EMA. The RSI is positive and not overbought. The PMO is on a new Crossover BUY Signal. Stochastics are rising strongly and should get over 80 very soon. Relative strength is improving across the board. The stop is set beneath the 50-day EMA at 7.1% or $30.61.
The weekly chart shows SEE in a longer-term trading range. Right now we are counting on a move back to the top of the range. The weekly RSI is now positive and the weekly PMO is rising on a Crossover BUY Signal. Unfortunately the SCTR is outside the hot zone, but it does look ready to reverse. This does look like a "V" Bottom and the implication is that we will see a breakout above the left side of the "V".
UMB Financial Corp. (UMBF)
EARNINGS: 2025-07-29 (AMC)
UMB Financial Corp. engages in the provision of bank and asset services. It operates through the following segments: Commercial Banking, Institutional Banking, and Personal Banking. The Commercial Banking segment serves the commercial lending and leasing, capital markets, and treasury management needs of the company's mid-market businesses and governmental entities by offering various products and services. The Institutional Banking segment is a combination of banking services, fund services, and asset management services provided to institutional clients. The Personal Banking segment combines consumer banking and wealth management services offered to clients and delivered through personal relationships and the firm's bank branches, ATM network, and internet banking. The company was founded was founded in 1967 and is headquartered in Kansas City, MO.
Predefined Scans Triggered: None.
UMBF is unchanged in after hours trading. The bull flag caught my eye and it has been confirmed with a breakout from the flag. The minimum upside target of the pattern would take price above the December top. The RSI is positive and not overbought. The PMO is on a new Crossover BUY Signal. Stochastics are now above 80. The group itself isn't really outperforming, but neither is it underperforming. UMBF is starting to see some new relative strength. The stop is set beneath the prior bottoms at 7.2% or $98.45.
We have "V" Bottom on the weekly chart that implies we'll see a move close to the next level of overhead resistance. The weekly RSI just hit positive territory. The weekly PMO is nearing a Crossover BUY Signal above the zero line. The SCTR is not in the hot zone yet and is trending a bit lower so we'll want a short leash 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 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.
"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