Today I hosted The Final Bar on StockChartsTV for David Keller who is current on vacation. Before the show I ran my Diamond PMO Scan and found a ton of symbols to review. I have picked my favorite three which includes two metals that you may or may not have considered previously. They are lined up very well. Finally, I picked a 'vacation/recovery' stock for your review.
I am no longer publishing five Diamonds per report, I am going to cover a minimum of 3 per day on Tuesday/Wednesday and then 3 reader requests and 1 of my diamonds on Thursday. The Recap and Diamond Mine remain the same. I am not limiting myself to doing only ten per week because sometimes more need to be showcased.
I've listed today's "Diamonds in the Rough" below and then I have added "stocks to watch" under that since I had quite a few symbols I liked on The Final Bar. I may begin doing this so as not to limit my readers to only 3-5 stocks (if it warrants it).
Today's "Diamonds in the Rough" are: COPX, PPLT and WGO.
"Stocks to Consider": CAE, CDMO, FCOM, GES, GNRC, IBUY, NESR, SOCL, UPWK and WMS.
Diamond Mine REGISTRATION Information:
When: Apr 9, 2021 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine LIVE Trading Room
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Diamond Mine RECORDING Link from 3/26/2021:
Topic: DecisionPoint Diamond Mine (04/02/2021) LIVE Trading Room
Start Time : Apr 2, 2021 09:00 AM
Meeting Recording HERE!
Access Passcode: DM_04/02
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Free DP Trading Room RECORDING LINK:
Topic: DecisionPoint Trading Room
Start Time : Apr 5, 2021 08:57 AM
Meeting Recording HERE!
Access Passcode: April_4/5
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Welcome to DecisionPoint Daily Diamonds, wherein I highlight five "diamonds in the rough." 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!
Global X Copper Miners ETF (COPX)
COPX tracks a market-cap-weighted index of global copper mining companies.
COPX is down -0.16% in after hours trading. Copper has been on the decline since the end of February, but it has pivoted and broken out of a bullish falling wedge (that could be considered a flag on a long flag pole). The RSI is positive and not overbought and the PMO is curling up toward a crossover BUY signal. The SCTR is top notch and has been for quite some time. It has begun to outperform the SPX. The stop is set below the January top.
The flag I mentioned above is visible, but the pattern that interests me on the weekly chart is the large double-bottom. It has yet to meet the minimum upside target of the pattern which is about $47.50. If it reaches current all-time highs it will be a modest gain of 9.5%, but if that double-bottom is right, there is much more upside potential available. I'm not thrilled with the overbought PMO, but it is beginning to turn up above the signal line. There is also a positive and not overbought RSI.
Aberdeen Standard Physical Platinum Shares ETF (PPLT)
PPLT tracks the platinum spot price, less trust expenses, using platinum bullion held in London and Zurich.
PPLT is up +0.11% in after hours trading. PPLT holds physical platinum similar to PHYS which holds physical Gold. It really rallied strongly today so there is a chance we could see a pullback (although it is up in after hours). Lots of great things about this chart. There is a double-bottom formation and today's gap up rally triggered it. The minimum upside target is about $125 which would mean a breakout above the February highs. The RSI is positive and the PMO is just about to give us a crossover BUY signal. I would've liked to have seen more volume today as that could've nullified the current OBV negative divergence. Although we do have rising bottoms on the OBV. The SCTR tells us this ETF is in the top 11% of all ETFs covered by StockCharts. You can see that platinum is now beginning to outperform the SPX.
The weekly chart looks very healthy. The PMO is on the overbought side, but it is bottoming above the signal line which implies higher prices. The RSI on the other hand is not overbought. On the pullback in February, it was able to move out of overbought and is now seated firmly within positive territory above net neutral (50).
Winnebago Industries Inc. (WGO)
EARNINGS: 6/23/2021 (BMO)
Winnebago Industries, Inc. engages in the design, development, manufacture, and sale of motorized and towable recreation products. It operates through the following segments: Grand Design towables, Winnebago towables, Winnebago motorhomes, Newmar motorhomes, Chris-Craft marine and Winnebago specialty vehicles. The company was founded on February 12, 1958 and is headquartered in Forest City, IA.
WGO is unchanged in after hours trading. I covered WGO as a reader request back on June 11th 2020. It was up about 17% before falling and hitting the 7.8%. If you hadn't taken the stop and rode it down (which I never recommend) it would currently be up 31.2% today. I like the set up on this one. We have a strong "V" bottom that has retraced about half of the pattern...only 1/3 is required to execute the pattern. The RSI is positive and rising and the PMO is turning up on its way to a crossover BUY signal. The OBV is confirming the rally and it is showing good outperformance against the SPX and its industry group. I've set a 9.1% stop that is just below support at the top of the February trading channel.
I really like the weekly chart. We have a PMO on a BUY signal that is rising and is not overbought and the RSI is positive. It's a 9% ride to all-time highs, but given the bullishness of the daily and weekly charts, I would expect a breakout to new all-time highs.
Don't forget, on Thursdays I look at reader-requested symbols, so shoot me an email at firstname.lastname@example.org. I read every email I receive and try to answer them all!
Full Disclosure: I'm about 65% invested and 35% is in 'cash', meaning in money markets and readily available to trade with. I added the following Diamonds in my portfolio this week: EWY, MELI and NVDA. Will probably add copper and platinum ETFs/Stocks later.
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)
- The Bullish Percent Index (BPI) shows the percentage of SPX stocks on Point & Figure BUY signals.
Don't forget that as a "Diamonds" member, you have access to our GCI/SCI 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:
The Diamond Index chart looks at the number of scan results from my bullish Diamond PMO Scan and the number of scan results from the inverse Diamond Dog Scan. The Diamond Ratio divides the bullish results by the bearish results.
I only have data going back to October 2019 so I won't make any sweeping conclusions about the Diamond Index chart. I have marked cardinal tops with red dotted vertical lines and cardinal price bottoms with green dotted vertical lines. I believe that when the Diamond Dog results spike, it usually comes at a price bottom, or marks a strong continuation of the rising trend.
Unfortunately, the Diamond PMO Scan result numbers aren't providing much insight. The Diamond Ratio has promise, but again I don't see a clear correlation to the market tops/bottoms right now. I need to study and manipulate the data some more. Keep you posted!
Technical Analysis is a windsock, not a crystal ball.
Watch the latest episode of DecisionPoint with Carl & Erin Swenlin on Mondays 7:00p EST or on the DecisionPoint playlist on the StockCharts TV 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."
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
For more links, go to DecisionPoint.com!