Lots of requests to choose from. They aren't all perfect charts, but most do look tasty enough to possibly nibble. I plan on keeping my exposure at 15% given I'm leaving on vacation and won't have the opportunity to monitor my investments as needed. I do believe we are seeing a new bear market rally. I don't believe the bear market is over by a long shot though.
Thank you for your patience as I deal with care for my mother-in-law. We are setting up home care, but until then it's my husband and I along with a close friend who will be needed there 24/7. Gotta love the "ships in the night" phrase as I've had maybe 10 minutes total in person time with my husband as we switch off from days to nights for past three days. I know that the majority of you understand. It's not anything new in life, it just happens; of course, you never expect it when the time comes. I definitely appreciated all the kind replies to my announcement yesterday and thank you as I move forward with going to Europe in less than a week with no reports soon. Things are pretty crazy right now which is why reports are going out so late. My comments will be brief tonight.
Since I skipped yesterday, I have seven picks for you day that were culled from all of the reader requests.
I mistakenly did not put tomorrow's Diamond Mine trading room link out instead I listed it for April 1st while I'm gone, so you can register HERE or below for the trading room tomorrow. There will be no April 1st Diamond Mine as I previously listed so you'll likely get notice that it was canceled by me if you had already registered. I'm not surprised I mixed this up with everything going on right now.
Today's "Diamonds in the Rough": ABOS, ACET, CCK, CLS, DKNG, OMI and PKG.
Stocks to Review: CNQ, CUBI, HUN, SEE, PLTR and UUUU.
*** Working VACATION March 23 to April 1 ***
I will be taking a trip to the Netherlands and Belgium to see the tulips! As always, I will post pictures and give you a brief diary of my adventures for those interested. Here is how publishing will be affected.
DP Alert - The DPA will be published each market day as usual, but comments will be abbreviated. You will get the latest charts, but if there are no significant changes, comments will be carried over.
DP Diamonds - Week of March 21st: Five picks on 3/21 and five picks on 3/22 - No Diamond Mine or Recap // Week of March 28th: No Diamonds Reports or Diamond Mine (You will be compensated with an additional week added to the end of your subscription)
RECORDING LINK (3/11/2022):
Topic: DecisionPoint Diamond Mine (3/11/2022) LIVE Trading Room
Start Time: Mar 11, 2022 09:00 AM
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There will be no Diamond Mine trading room for on 3/25 nor 4/1 due to my vacation.
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When: Mar 18, 2022 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (3/18/2022) LIVE Trading Room
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Start Time: Mar 14, 2022 09:00 AM
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Welcome to DecisionPoint Daily 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.
Acumen Pharmaceuticals Inc. (ABOS)
EARNINGS: 3/28/2022 (AMC)
Acumen Pharmaceuticals, Inc. discovers and develops medicines and diagnostics for Alzheimer's disease. The company was founded by William L. Klein, Grant A. Krafft and Caleb Finch in 1996 and is headquartered in Livermore, CA.
Predefined Scans Triggered: New CCI Buy Signals.
ABOS was unchanged in after hours trading. Be careful with this one, it is in a severed bear market right now. We are seeing a small breakout above the 50-day EMA which is positive. The RSI is positive and the PMO is on a BUY signal that triggered back in January. The PMO has also just moved above zero which is also good. Stochastics are positive and rising. Relative performance of the group continues to be strong. ABOS is performing in line with the market and the group. Another reason to be careful since we are in a bear market and so is this stock. The stop is set around the 20-day EMA.
Not much data here as it is a new stock. We do see the weekly RSI rising out of oversold territory and the OBV is showing rising bottoms. I see a rounded bottom that does suggest a breakout. If it just reaches the late 2022 tops, that would be a nice 24% gain.
Adicet Bio, Inc. (ACET)
EARNINGS: 5/16/2022 (AMC)
Adicet Bio, Inc. is a biotechnology company, which engages in the design and development of off-the-shelf allogeneic gamma delta T cell therapies for cancer and other diseases. The company was founded by Aya Jakobovits in November 2014 and is headquartered in Boston, MA.
Predefined Scans Triggered: P&F Double Top Breakout.
ACET was unchanged in after hours trading. I like the somewhat complex bullish double-bottom pattern. Today's breakout confirms the pattern. The upside target of the pattern would be about $20. The RSI is positive and the PMO is rising on a crossover BUY signal. Stochastics are rising and just moved above 80. Relative performance is very good. The stop is set below the confirmation line of the pattern.
Price is already up over 23% this week, so I'm unsure how much more it's got. It is in a bull market though so we can have bullish expectations. If it can reach the 2020 high, that would be a 40% gain.
Crown Holdings Inc. (CCK)
EARNINGS: 4/18/2022 (AMC)
Crown Holdings, Inc. engages in the design, manufacture, and sale of packaging products and equipment for consumer goods. The firm offers aerosol cans, beverage, promotional, and transit packaging, closures and capping, and food cans. It operates through the following segments: Americas, Europe, Asia Pacific, and Transit Packaging. The Americas segment manufactures beverage, food and aerosol cans and ends, glass bottles, specialty packaging, metal vacuum closures, steel crowns, and aluminum caps. The Europe segment operates in Europe, Middle East, and North Africa. The Asia Pacific segment includes beverage and non-beverage can operations. The Transit Packaging segment provides industrial and protective solutions and equipment and tools businesses. The company was founded by William Painter in 1892 and is headquartered in Philadelphia, PA.
Predefined Scans Triggered: P&F Ascending Triple Top Breakout and P&F Double Top Breakout.
CCK was unchanged in after hours trading. Currently CCK is in a nice rising trend channel. Unfortunately it has tested the top and could head back down to test the bottom of the channel. However, the indicators are very favorable: RSI positive, PMO on a BUY signal and Stochastics rising and above 80. The OBV is also confirming the rising trend with a rising trend of its own. Relative strength studies are bullish. The stop is at a level that would imply a break from the rising trend channel.
I like the weekly chart due to the weekly RSI being positive and weekly PMO rising on a BUY signal. I'm not thrilled that the RSI is overbought, but this stock is in a bull market and we could see overbought readings for some time, similar to the last quarter of 2020. Upside target can be set at 16% or $147.11.
Celestica, Inc. (CLS)
EARNINGS: 4/27/2022 (AMC)
Celestica, Inc. engages in the provision of supply chain solutions globally to original equipment manufacturers and service providers. It operates through the Advanced Technology Solutions (ATS) and Connectivity and Cloud Solutions (CCS) business segments. The ATS segment comprises of aerospace and defense, industrial, smart energy, health tech, and capital equipment businesses. The CCS segment consists of enterprise communications, telecommunications, servers, and storage businesses. Celestica was founded in 1994 and is headquartered in Toronto, Canada.
Predefined Scans Triggered: None.
CLS was up +1.98% in after hours trading. I covered CLS on November 4th 2021. The position is still open and is up +19.1%. I like the breakout above 20/50-day EMAs, still need to see a breakout above the mid-February high. Indicators suggest we will. Positive Stochastics, new PMO BUY signal, confirming rising trend on OBV and Stochastics reaching above 80. While the group may not be outperforming, CLS is outperforming the group and the market. The stop is set below the 50-day EMA.
The weekly chart is bullish with a weekly PMO BUY signal and positive weekly RSI. Based on the monthly chart I looked at, $15 is the next level of overhead resistance. That would be a 19.2% gain.
DraftKings Inc (DKNG)
EARNINGS: 5/6/2022 (BMO)
DraftKings, Inc. operates as a digital sports entertainment and gaming company. It operates through the Business-to-Consumer (B2C) and Business-to-Business (B2B) segments. The B2C segment focuses on providing users with daily fantasy sports, sports betting, and online casino products. The B2B segment develops, designs, and licenses sports betting and casino gaming software for its Sportsbook and casino gaming products. The company was founded by Jason D. Robins, Matthew Kalish and Paul Liberman on December 31, 2011 and is headquartered in Boston, MA.
Predefined Scans Triggered: Elder Bar Turned Green and P&F Low Pole.
DKNG was down -2.0% in after hours trading. Be careful trying to catch this falling knife. The indicators are looking encouraging, but this stock is in a clear bear market. Stochastics are rising but negative. The PMO is rising but hasn't had its crossover. Stochastics are rising nicely but are still technically in negative territory below net neutral (50). Stop is set near February low.
If price can reach last month's high, it would be a 38% gain. Weekly RSI is negative but rising and weekly PMO is bottoming. We actually have a very nice OBV positive divergence here too.
Owens & Minor Inc. Holding Co. (OMI)
EARNINGS: 5/4/2022 (BMO)
Owens & Minor, Inc. engages in the provision of healthcare solutions. It operates through the Global Solutions and Global Products segments. The Global Solutions segment consists of the United States distribution, outsourced logistics, and value-added services businesses. The Global Products segment manufactures and sources medical surgical products through production and kitting operations. The company was founded by Otho O. Owens and G. Gilmer Minor in 1882 and is headquartered in Mechanicsville, VA.
Predefined Scans Triggered: Moved Above Upper Keltner Channel, Moved Above Upper Bollinger Band, Stocks in a New Uptrend (Aroon), Moved Above Upper Price Channel and P&F Double Top Breakout.
OMI was up +0.17% in after hours trading. I've covered it twice before and sadly both times the stop was hit (February 5th 2022 and December 21st 2021). Really nice breakout confirming a possible reverse head and shoulders pattern. Of course, overhead resistance is already nearing. The minimum upside target of the pattern would be a whopping $56. OMI just had triggered an IT Trend Model "Silver Cross" BUY signal with the 20/50-day EMA crossover. The RSI is positive, the PMO is now above zero after a crossover BUY signal. While the group may be suffering OMI is not as far as relative performance. The stop is at my average 8%. It would be 9% if you took it to the 50-day EMA.
Overhead resistance is at all-time highs, but I think it could move higher based on the positive weekly RSI and weekly PMO turning up. With all-time highs so close, I would consider a 16% upside target at $53.85.
Packaging Corp Of America (PKG)
EARNINGS: 4/25/2022 (AMC)
Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.
Predefined Scans Triggered: New 52-week Highs, P&F Bear Trap, P&F Double Top Breakout and P&F Triple Top Breakout.
PKG was unchanged in after hours trading. I covered it on March 3rd 2021, the position is open and up +14.5%. Excellent breakout to new all-time highs after spending a month in a trading range. RSI is positive and not overbought and the PMO is on a crossover BUY signal. Stochastics are still rising above 80 and we see outperformance across the board. The stop is set around the 50-day EMA.
Weekly RSI is overbought, but this one is in a bull market and could see the RSI remain there for some time. The weekly PMO has a crossover BUY signal.
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)
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 15% invested and 85% 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.
Good Luck and Good Trading!
"Technical Analysis is a windsock, not a crystal ball." - Carl Swenlin
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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."
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