The market continues to climb as investors continue to shrug off the chaos in Afghanistan. While I have expanded my exposure to 50%, I have my stops set rather tightly and have my portfolio skewed toward Materials, Energy and Healthcare in particular.
I spotlighted Health Care Providers last Friday and discussed them in yesterday's DecisionPoint Show. I have two to share with you today. I also picked a Biotech that is reversing nicely. The "one of these things is not like the other" stock would be my pick of a Specialty Retailer today.
Today's "Diamonds in the Rough" are: BNED, CDNA, EXAS and PGNY.
"Stocks to Review" culled from today's requests: REPL, ANTM, BFLY, GPRO, DOW, HII, VRSN and SUMO.
** IMPORTANT new procedures for trading room SYMBOL REQUESTS **
I'm trying to formalize the process for symbol requests in my trading rooms. Since not everyone can attend live, I encourage you to email me your requests for Monday's free trading room and Friday morning's Diamond Mine. A subject line with "Symbol Request" will help me a great deal.
If you are attending live, you have the first 15 minutes to get your requests in the Q&A box. Please only request one or at most two and as always, let me know if your request is for a buy, hold or sell/short.
I've made a promise that all Diamond subscribers will get their symbols looked at on Fridays but that has been difficult to do within the time constraints I have. Emailing the night before will ensure your request is looked at and time permitting, I will cover all the live requests from the first 15 minutes.
As our community grows it will become harder and harder for me to live up to my promise, but for now I believe I can get them all in if we use this more formal process for making requests.
RECORDING LINK Friday (8/20):
Topic: DecisionPoint Diamond Mine (8/20/2021) LIVE Trading Room
Start Time : Aug 20, 2021 08:58 AM
Meeting Recording Link HERE.
Access Passcode: August/20th
REGISTRATION FOR FRIDAY 8/27 Diamond Mine:
When: Aug 27, 2021 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (8/27/2021) 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 (8/23) RECORDING LINK:
Topic: DecisionPoint Trading Room
Start Time : Aug 23, 2021 09:01 AM
Meeting Recording Link HERE.
Access Passcode: August#23
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!
Barnes & Noble Education, Inc. (BNED)
EARNINGS: 9/2/2021 (BMO)
Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the following segments: Retail, Wholesale, and Digital Student Solutions (DSS). The Retail segment operates physical and virtual campus bookstores. The Wholesale segment sells hardware and software that provides inventory management and point-of-sale solutions to college bookstores. The DSS segment includes direct-to-student product and service offerings to assist students to study more effectively and improve academic performance. The company was founded by Leonard Riggio in 1965 and is headquartered in Basking Ridge, NJ.
BNED is unchanged in after hours trading. I like the bounce off support at the 200-EMA and the June low. Price closed above the 20-EMA for the first time this month. The RSI just hit positive territory and the PMO is headed toward an oversold BUY signal. The SCTR has just reached the "hot zone" above 75. Volume is coming in nicely. There are areas of overhead resistance to deal with at the 50-EMA and the February/May tops. It's poised to breakout. Given today's big rally, you should be able to get this one on a pullback. The stop is set below the early August intraday lows.
The weekly RSI is positive but the PMO looks quite negative. I do like the bounce off the 43-week EMA and price being above resistance at the 2018/2019 tops. Upside potential would be 29.1% if it can reach overhead resistance at the 2017 highs.
CareDx Inc. (CDNA)
EARNINGS: 10/28/2021 (AMC)
CareDx, Inc. operates as a transplant diagnostics company, which discovers, develops and commercializes diagnostic solutions. Its product includes AlloMap, AlloSure and Laboratory products. The company was founded on December 21, 1998 and is headquartered in South San Francisco, CA.
CDNA is unchanged in after hours trading. Here is my first Health Care Provider for the day. I love the "V" bottom that has formed on price. We also saw a breakout today above the June/July lows. The RSI just hit positive territory and the PMO is curling up for an oversold crossover BUY signal. As of late the group isn't outperforming, but CDNA is doing just fine against the SPX. The stop is set just below the 200-EMA.
The weekly chart could use some work, but the long-term rising trend is still intact. The weekly RSI has just reached positive territory. The PMO appears to be decelerating, but I'd prefer it to at least be rising if I wanted this for the long term.
EXACT Sciences Corp. (EXAS)
EARNINGS: 10/26/2021 (AMC)
EXACT Sciences Corp. is a molecular diagnostics company, which focuses on the early detection and prevention of colorectal cancer. It developed Cologuard, a screening test for the early detection of colorectal cancer and pre-cancer. The company was founded on February 10, 1995 and is headquartered in Madison, WI.
EXAS is up slightly +0.07% in after hours trading. I covered EXAS on January 13th 2021. Definitely turned out to be a stinker. It was up about 8.5% before it fell again in February, triggering the 10% stop loss. This time we are looking at it as a 'bottom fish'. Price is rising beautifully off strong support at the May low. The RSI is rising and the PMO is nearing a crossover BUY signal. There is a positive OBV divergence leading into this rally which suggests it will be sustained. Relative strength is beginning to improve against the SPX and its group which is already on a relative strength rising trend. The stop is deep, but it made the most sense putting it below the May and August lows. We do have to be watching this one given the completely negative configuration of the EMAs. It definitely looks intriguing to me.
On the weekly chart, I note that this level of support really only matches with that previous low. Actual strong support is at $70, so if this fails it could be dangerous. Definitely set a stop on this one if you're going to dip your toes in.
Progyny Inc. (PGNY)
EARNINGS: 11/4/2021 (AMC)
Progyny, Inc. is a fertility benefits management company. It provides fertility solutions to employers, managing IUI, in vitro fertilization (IVF), egg freezing, and other fertility treatments. The company operates through one segment: fertility and pharmacy benefits solutions. It also delivers treatment services and access to the firm's network of fertility specialist. The company was founded on April 3, 2008 and is headquartered in New York, NY.
PGNY is up +0.90% in after hours trading. Price is now trying to close the gap from earlier this month that was associated with earnings. Price is accelerating higher and closed well above the 20-EMA. The PMO is nearing a crossover BUY signal and the RSI is about to enter positive territory. PGNY is showing outperformance. Watch for a pullback to about the 20-EMA as that could be an interesting entry. The stop is set below the May low.
The weekly chart isn't great, but we shouldn't put too much emphasis on the weekly PMO simply because it hasn't had time to regulate. The weekly RSI is about to reenter positive territory.
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!
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.
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."
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