I've arrived at the Grand Canyon and will explore with an airplane ride tomorrow! Bryce Canyon was amazing. I included some of the pictures that I've downloaded, but there are more I will share tomorrow.
I noted in today's DP Alert that we could have a downside initiation climax which tells us there today's decline will see follow-through, so be careful if you are expanding your exposure right now.
I chose a Gold Miner today. The group looks ready to rally, but overall isn't ripe. However, I like today's Gold Miner selection Royal Gold (RGLD).
The other two have to do with trucking (KNX) and shipping (UPS).
Today's "Diamonds in the Rough" are: KNX, RGLD and UPS.
** WORKING VACATION - June 28th to July 9th **
It's that time of year again! Last year it was a road trip to Alabama and back, this year it is a road trip to Utah and back! We hit Las Vegas, Zion, Spanish Fork and Bryce Canyon. We've arrived at the Grand Canyon, and head back home Thursday. I'll include my travel pictures just like last year!
I plan on writing, but trading rooms will be postponed until I return home. Diamond Report publishing will vary depending on travel and activities, but you WILL get your 10 "Diamonds in the Rough" per week.
TENTATIVE SCHEDULE NEXT WEEK:
Three stocks Tuesday (7/6) and Wednesday (7/7). Then reader requests and one of my selections on Thursday (7/8) for a total of ten stocks this week. The Recap will be on Friday as always (7/9).
Diamond Mine Information:
RECORDING LINK Wednesday (6/23):
Topic: BONUS DecisionPoint Diamond Mine Wednesday (6/23)
Start Time : Jun 23, 2021 09:01 AM
6/23 Diamond Mine Recording Link.
Access Passcode: June-23rd
RECORDING LINK FOR MAKE-UP (Wednesday 7/14):
When: Jul 14, 2021 09:00 AM Pacific Time (US and Canada)
Topic: Make-up DecisionPoint Diamond Mine (7/14/2021) LIVE Trading Room
Register in advance for this MAKE-UP webinar HERE
REGISTRATION FOR FRIDAY (7/16) Diamond Mine:
When: Jul 16, 2021 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (7/16/2021) LIVE Trading Room
Register in advance for this webinar HERE.
REGISTRATION FOR FRIDAY (7/16) Diamond Mine:
When: Jul 16, 2021 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (7/16/2021) LIVE Trading Room
Register in advance for this webinar HERE.
Save the registration confirmation email with login instructions in case Zoom doesn't notify you in time.
Free DP Trading Room RECORDING LINK:
Topic: DecisionPoint Trading Room
Start Time : Jun 21, 2021 09:00 AM
Meeting Recording HERE
Access Passcode: June-21st
For best results, copy and paste the access code to avoid typos.
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!
Knight-Swift Transportation Holdings Inc. (KNX)
EARNINGS: 7/21/2021 (BMO)
Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment include brokerage and other freight management services. The Intermodal segment consists revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.
KNX was unchanged in after hours trading. I covered KNX in the midst of the bear market on March 18th 2020. Of course the 8.2% stop was hit later that month and price dove down to $27 before it bottomed. I like the breakout today from the bullish falling wedge. Additionally, price broke above resistance at the August/September tops. The 5-EMA is nearing a positive cross above the 20-EMA for a ST Trend Model BUY signal. The RSI is positive and the PMO just triggered a crossover BUY signal. The SCTR is improving. The industry group has been underperforming the market, but KNX is beginning to outperform the market and its group. The stop is set at a reasonable 6.7%.
The weekly PMO is on a SELL signal but does seem to be decelerating. The RSI is positive and the long-term rising trend is intact. Price not only bounced off the rising bottoms trendline, it bounced off the 43-week EMA. While it only shows 8.4% to the all-time high, I would look for it to start setting new ones.
Royal Gold, Inc. (RGLD)
EARNINGS: 8/11/2021 (AMC)
Royal Gold, Inc. engages in the acquisition and management of metal streams, royalties, and similar interests. It operates through the following segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. The Acquisition and Management of Stream Interests segment involves in the purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals. The Acquisition and Management of Royalty Interests segment focuses on the non-operating interests in mining projects that provide the revenue or metals produced from the project. The company was founded on January 5, 1981 and is headquartered in Denver, CO.
RGLD was unchanged in after hours trading. While the industry group as a whole hasn't rebounded much, RGLD was already headed back up. My one concern is that price hasn't covered the gap. Once it does, there is a high likelihood it will continue higher. The RSI is positive and the PMO is nearing a crossover BUY signal. The industry group isn't performing that well, but RGLD is one of the out-performers in the group. It is also beginning to show some outperformance against the SPX. The stop is set at 7.5% to take it to support.
The long-term rising trend is intact. Note that price didn't have to touch the rising bottoms trendline before rebounding. The weekly RSI is positive and the weekly PMO appears to be bottoming above the signal line which is especially bullish. Upside potential is over 25%.
United Parcel Service, Inc. (UPS)
EARNINGS: 7/27/2021 (BMO)
United Parcel Service, Inc. operates as a logistics and package delivery company that provides supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance, and financing. The firm operates through the following segments: U.S. Domestic Package, International Package, and Supply Chain and Freight. The U.S. Domestic Package segment offers a full spectrum of U.S. domestic air and ground package transportation services. The International Package segment consists of small package operations in Europe, Asia Pacific, Canada, Latin America and the Indian sub-continent, Middle East and Africa (ISMEA) and offers a selection of day and time definite international shipping services. The Supply Chain & Freight consists of forwarding, truckload brokerage, logistics, UPS Freight, UPS Capital and other businesses. The company was founded by James E. Casey and Claude Ryan on August 28, 1907 and is headquartered in Atlanta, GA.
UPS was down -0.14% in after hours trading. Price managed to overcome short-term overhead resistance and is hovering there. The PMO is nearing a crossover BUY signal and the RSI is positive. The SCTR has now entered the "hot zone" above 75 (meaning it is in the upper quartile of all large-cap stocks). The group is performing slightly better than the SPX. UPS is outperforming them both. The is set under support at 8.1%.
UPS has been in a rising trend channel since the bear market low. It bounced off the 17-week EMA, meaning it didn't have to test the bottom of the channel. That is very bullish. The weekly RSI is positive and the weekly PMO is attempting to bottom above its signal line which is especially bullish.
Don't forget, on Thursdays I look at reader-requested symbols, so shoot me an email at erin@decisionpoint.com. 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)
- 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:
Full Disclosure: I'm about 50% invested and 50% is in 'cash', meaning in money markets and readily available to trade with.
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
erin@decisionpoint.com
Bryce Canyon Part One (Part Two tomorrow along with Grand Canyon):
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