I didn't have a lot of choices for Reader Request Day. Some symbols had been brought up earlier this week and unfortunately some of them had turned lower out of overbought territory. One reader brought a runner to the table for me to discuss. Another one brought a well known stock of interest. I ended up finding one of my own despite scans being somewhat light.
One of the positions is in aggressive Technology while the other is in Consumer Staples so we've covered some bases. The third is a Miner from Materials.
Tomorrow is the Diamond Mine trading room. We only have a few more left so take advantage. The group is very welcoming!
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CELH, CSCO and MP.
Other requests: META, ORCL, OKLO, CEG and SMR.
Diamond Mine Trading Room:
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Topic: DecisionPoint Diamond Mine (5/30/2025) LIVE Trading Room
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When: June 6, 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.
Celsius Holdings Inc. (CELH)
EARNINGS: 2025-08-05 (BMO)
Celsius Holdings, Inc. engages in the development, marketing, sale, and distribution of functional drinks and liquid supplements. It also offers post-workout functional energy drinks and protein bars. The company was founded in April 2004 and is headquartered in Boca Raton, FL.
Predefined Scans Triggered: P&F Triple Top Breakout, Hollow Red Candles and P&F Double Top Breakout.
CELH is down -0.72% in after hours trading so it is retreating below resistance again, but the indicators are lined up well and it is in a rising trend out of the May low. It essentially busted a bearish double top that had formed which is especially bullish. The RSI is positive and not overbought. The PMO is on a new Crossover BUY Signal. Stochastics are rising above 80. The group could be doing better against the SPY, but it isn't really underperforming. CELH is doing very well against the SPY and based on performance against the group, we have leader in this area. The stop is set below the 20-day EMA at 6.9% or $37.31.
I liked the nice base on this rounded bottom to build on price. The weekly RSI is positive and not overbought. The weekly PMO is making its way higher above the zero line. The StockCharts Technical Rank (SCTR) is at the top of the hot zone*. I don't know that it will rally 70%+, but it sure has some opportunity on a breakout.
*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.
Cisco Systems, Inc. (CSCO)
EARNINGS: 2025-08-13 (AMC)
Cisco Systems, Inc. engages in the design, manufacture, and sale of Internet Protocol-based networking products and services related to the communications and information technology industry. The firm operates through the following geographical segments: the Americas, EMEA, and APJC. Its products include the following categories: Secure, Agile Networks, Internet for the Future, Collaboration, End-to-End Security, Optimized Application Experiences, and Other Products. The company was founded by Sandra Lerner and Leonard Bosack in 1984 and is headquartered in San Jose, CA.
Predefined Scans Triggered: P&F Double Top Breakout and P&F Triple Top Breakout.
CSCO is up +0.12% in after-hours trading. The bull flag got my attention on this one. The flag itself is a bullish falling wedge. The RSI is not yet overbought. The PMO has surged above the signal line and is headed higher well above the zero line. Stochastics reversed higher in positive territory. Relative strength is picking up for the group right now. It has been performing very well against the SPY. It is a leader in this group based on the rising relative strength line to the group. The stop is set beneath the 50-day EMA at 6.1% or $60.67.
It is up against overhead resistance on the weekly chart. We do have a bullish "V" Bottom pattern that suggests we'll get a breakout here. The weekly RSI is positive and not overbought. I like the new weekly PMO Crossover BUY Signal. The SCTR is just inside the hot zone. Consider a 17% upside target to $75.61.
MP Materials Corp. (MP)
EARNINGS: 2025-08-07 (AMC)
MP Materials Corp. engages in the production and marketing of rare earth specialty materials. It operates through the Materials and Magnetics segments. The Materials segment focuses on the operation of Mountain Pass, which produces refined rare earth oxides and related products, as well as rare earth concentrate products. The Magnetics segment is involved in the operation of Independence Facility, where the company began production of magnetic precursor products. The company was founded by James Henry Litinsky and Michael Rosenthal in 2017 and is headquartered in Las Vegas, NV.
Predefined Scans Triggered: Moved Above Ichimoku Cloud, Moved Above Upper Price Channel, P&F Double Top Breakout, Moved Above Upper Keltner Channel and Stocks in a New Uptrend (ADX).
MP is down -0.55% in after hours trading. This one is a runner. It has just gotten started likely as discussions about rare earth materials heat up regarding China trade. I would prefer an entry (or adding to the position) on any kind of pullback. We can see when the rally got started there was a day of decline. However, it wouldn't surprise me if it did keep running higher. The indicators are very bullish. It is especially nice to not see an overbought RSI given this current straight up rally. The PMO is rising on a Crossover BUY Signal. Stochastics are planted above 80. Relative strength for the group is picking up and MP is outperforming both the group and the SPY. The stop is set arbitrarily at 7.8% or $23.90.
This is a nice breakout above resistance. It failed the last time it hit this territory, but it seemed the breakout was a little less forceful than this one. The weekly PMO is in positive territory. The weekly PMO has just turned back up and the SCTR is in 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.
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Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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