I ran my three favorite scans and it generated a good selection of symbols. I had trouble whittling it down, so today I'm bringing five symbols to the table. One is the Gold Miner I suggested as a "Diamond of the Week" during the DecisionPoint Show yesterday.
I believe all have potential, but I would be very careful about expanding your exposure given the market is showing weakness. Today I have five rather than the normal three stocks. I just couldn't decide.
Today's "Diamonds in the Rough": BAK, CLB, ERJ, MAPS and NEM.
"Stocks to Review": CNSL, MHO, HESM, VITL and FIVN.
RECORDING LINK Friday (11/5):
Topic: DecisionPoint Diamond Mine (11/5/2021) LIVE Trading Room
Start Time: Nov 5, 2021 09:01 AM
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When: Nov 12, 2021 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (11/12/2021) LIVE Trading Room
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Start Time: Nov 1, 2021 09:00 AM
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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!
Braskem SA (BAK)
EARNINGS: 11/9/2021 ** Reported Today **
Braskem SA engages in the manufacture of petrochemicals and other related products. It operates through the following segments: Brazil, USA, and Europe and Mexico. The Brazil segment includes production and sale of chemicals, supply of electricity, and production and sale of PE. The USA and Europe segment involves production, operation, and sale of polypropylene in the United States and Germany. The Mexico segment comprises production, operation, and sale of ethylene, high-density polyethylene and low-density polyethylene in Mexico. The company was founded in August 2002 and is headquartered in Butanta, Brazil.
Predefined Scans Triggered: None.
BAK is unchanged in after hours trading. Price has formed a double-bottom and is headed for the confirmation line at the late October high. If the pattern is confirmed, the minimum upside target would take it to resistance just above $24. The RSI just entered positive territory and the PMO triggered a crossover BUY signal today. Stochastics are rising strongly and have reached positive territory above net neutral (50). Relative strength is favorable. The stop is set just below the 200-EMA.
Price is bouncing off the 43-week EMA and is above support now at the 2018 low and 2020 high. The weekly RSI is back in positive territory. The overall price pattern does look "toppy" and the weekly PMO is declining so this one is likely a short-term trade rather than intermediate-term investment. If the weekly chart start to get healthier then you could lengthen the time horizon of the investment.
Core Laboratories N V (CLB)
EARNINGS: 1/26/2022 (AMC)
Core Laboratories NV engages in the provision of proprietary and patented reservoir description, production enhancement, and reservoir management services to the oil and gas industry. It operates through the following business segments: Reservoir Description and Production Enhancement. The Reservoir Description segment encompasses the characterization of petroleum reservoir rock, fluid, and gas samples and provides analytical and field services to characterize properties of crude oil and petroleum products. The Production Enhancement segment provides products and services relating to reservoir well completions, perforations, stimulations, and production. The company was founded in 1936 and is headquartered in Amsterdam, the Netherlands.
Predefined Scans Triggered: None.
CLB is up +1.67% in after hours trading. Price closed above the 50-EMA today. The RSI is back in positive territory and the PMO had a crossover BUY signal today. Stochastics are strongly rising in positive territory. Relative strength for the group is okay, but CLB is outperforming against the SPY. The stop is set below the September lows.
This is a strong area of support that price is bouncing off which leads me to believe we will see follow-through. The weekly RSI is negative, but it is rising. The weekly PMO has bottomed. Upside potential is amazing, but even if it were to stop at the early 2021 highs, that would still be an over 34% gain.
Embraer Aircraft (ERJ)
EARNINGS: 3/17/2022 (BMO)
Embraer SA engages in the design, manufacture, and sale of aircraft and its parts for commercial, defense, and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense and Security, Executive Jet Business, Service & Support and Others. The Commercial Aviation segment is involved in the development, production, and sale of commercial jets; and the provision of support services to regional aviation and aircraft leasing. The Defense and Security segment engages in research, development, production, modification, and support for defense and security aircrafts, as well as other integrated products and solutions including satellites and information and communication systems. The Executive Jet Business segment deals with the development, manufacture, and sale of executive jets. The Service & Support segment provides after-service solutions and support to its customers through a comprehensive portfolio of innovative and competitive solutions to ensure operational efficiency of products manufactured by Embraer and by other aircraft manufacturers, extending the useful life of commercial, executive and defense aircraft. The Others segment refers to the supply of structural parts and hydraulic systems and the production of agricultural sprayers. The company was founded by Ozires Silva on August 19, 1969 and is headquartered in São Paulo, Brazil.
Predefined Scans Triggered: Moved Above Ichimoku Cloud and Parabolic SAR Buy Signals.
ERJ is unchanged in after hours trading. I like the rally off strong support and the breakout above both the 20/50-EMAs today. As a consequence, a new IT Trend Model "Silver Cross" BUY signal triggered. The RSI just moved into positive territory and the PMO has bottomed and will reach positive territory soon. Stochastics are quite favorable and relative strength is improving across the board. The stop is set at the mid-August high.
The weekly RSI is positive and the weekly PMO is decelerating. Price is now hovering just above the mid-year high. Conservatively, if it can reach resistance at the late 2019 top, that's a 19% gain.
WM Technology, Inc. (MAPS)
EARNINGS: 11/11/2021 (AMC) ** Reports Thursday **
WM Technology, Inc. operates as a listings marketplace with SaaS subscription offerings sold to retailers and brands in the U.S. state-legal and Canadian cannabis markets. It also provides information on the cannabis plant and the industry and advocates for legalization. The company was founded by Douglas Francis and Justin Hartfield in 2008 and is headquartered in Irvine, CA.
Predefined Scans Triggered: Elder Bar Turned Green, Bullish MACD Crossovers, Parabolic SAR Buy Signals and P&F Double Bottom Breakout.
MAPS is up +1.02% in after hours trading. Here's your "speculative" investment of the week--position size wisely and prepare for possible volatility. Price closed above the 20-EMA after testing support at the August low. The RSI is rising, but is still negative right now. The PMO has turned up in oversold territory. Stochastics are rising, but like the RSI, are not in positive territory yet. Volume is strong going into earnings on Thursday. It hasn't been a good relative performer, but it appears that is changing. I would like to see it above overhead resistance, but if after hours trading is any indication, it should breakout very soon. The stop is set below support at the closing low from this month.
There is a large bullish descending triangle. It is a little wonky, but it's there nonetheless. The weekly RSI is negative but has turned up. The weekly PMO is decelerating in oversold territory.
Newmont Corporation (NEM)
EARNINGS: 2/17/2022 (BMO)
Newmont Corp. is a gold producer, which engages in the production of gold. It operates through the following geographical segments: North America, South America, Nevada, Australia, and Africa. The North America segment consists primarily of carlin, phoenix, twin creeks and long canyon in the state of Nevada and Cripple Creek and Victor in the state of Colorado, in the United States. The South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Australia segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Africa segment consists primarily of Ahafo and Akyem in Ghana. The company was founded by William Boyce Thompson on May 2, 1921 and is headquartered in Greenwood Village, CO.
Predefined Scans Triggered: Bullish MACD Crossovers.
NEM is down -0.04% in after hours trading. Gold Miners as a whole are very bullish right now. I presented NEM as the "Diamond of the Week" during yesterday's DecisionPoint Show. I also presented GOLD as a co-"Diamond of the Week". I presented NEM in the June 22nd 2020 Diamonds Report. Surprisingly, the stop was never hit. The position was up over 30% at the May top. Currently it is up a modest 1.16%.
We have a double-bottom forming. The confirmation line is at the October high. If the pattern executes as expected, the minimum upside target is at resistance at the April high. The RSI is back in positive territory and the PMO recently triggered a crossover BUY signal. Stochastics are rising and have just hit positive territory. Relative strength is improving for the group and NEM is outperforming the group.
The weekly PMO is rising again. You can see the significance of this area of support. It must hold it so the intermediate-term "line in the sand" is $50. Upside potential is over 30%.
Don't forget, on Thursdays I look at reader-requested symbols, click HERE to shoot 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)
- 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 85% invested and 15% is in 'cash', meaning in money markets and readily available to trade with.
I'm required to disclose if I currently own a stock and/or may buy it within the next 72 hours.
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