I didn't mention the sector in the title as I want my DP Diamonds subscribers to get this news first. We had some very great gains in this sector with Diamonds, but the stocks went into hibernation and corrected hard. I believe the correction is over.
Using my "Momentum Sleepers" scan I had Energy stocks dominate the results. I've been looking at a Crude Oil reversal on tap and it seems to be happening with these stocks helping to pave the way. I reentered PBF today, a stock that I shed when Oil prices went south. It reports earnings tomorrow so I'm going out on a limb I normally don't. I simply couldn't resist the chart. There are two other "Diamonds in the Rough" that were tempting as well. The "runner-up" list is more extensive today; not surprising given the excellent day in the market.
I could turn out to be very right about the reversal in Energy and Crude Oil, but on the flip side I could be very wrong--I don't think there is much middle ground on this call. Make sure you keep stops in play!
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Good Luck & Good Trading!
Today's "Diamonds in the Rough": DK, PBF and SOI.
Runners-Up: DINO, DVN, RADI, LUMN, EGBN, VTRS, VMW and HRB.
RECORDING LINK (7/15/2022. There was no Diamond Mine 7/22):
Topic: DecisionPoint Diamond Mine (7/15/2022) LIVE Trading Room
Start Time: Jul 15, 2022 09:01 AM
Meeting Recording Link
Access Passcode: July%15th
REGISTRATION Friday, 7/29 Diamond Mine:
When: Jul 29, 2022 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (7/29/2022) 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.
StockChartsTV is now producing the recording for the free DP Trading Room! It airs at 3p ET, much sooner than I was able to get out the recording links. Carl has joined so you can "ask the master" all those questions you've always wanted his opinion on! If you haven't registered to attend live at Noon ET, you can do so HERE.
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.
Delek US Holdings, Inc. (DK)
EARNINGS: 8/4/2022 (BMO)
Delek US Holdings, Inc. engages in petroleum refining, and the transportation, storage, and wholesale distribution of crude oil. It operates through the following segments: Refining, Logistics, Retail, and Corporate and Other. The Refining segment processes crude oil and other purchased feedstocks for the manufacture of transportation motor fuels, including gasoline, diesel fuel and aviation fuel, asphalt, and other petroleum-based products. The Logistics segment gathers, transports, and stores crude oil and markets, distributes, transports, and stores refined products. The Retail segment markets gasoline, diesel and other refined petroleum products, and convenience merchandise through a network of company-operated retail fuel and convenience stores. The company was founded in 2001 and is headquartered in Brentwood, TN.
Predefined Scans Triggered: P&F Low Pole.
DK is unchanged in after hours trading. The bottoming formations on all of these charts are excellent. The RSI just moved into positive territory and the PMO had a crossover BUY signal today. Price finished above the 50-day EMA for the first time since the correction began. Stochastics just moved above 80 and the OBV's rising bottoms are confirming this recent rally. The group has been performing in line with the SPY, but DK has been outperforming it this week and hence it is outperforming the SPY. The stop is set below the 5/20-day EMAs and $24.
The weekly charts are mixed on all of these "Diamonds in the Rough". The reason the weekly PMOs are on crossover SELL signals is due to the steep correction, it takes some time for it to overcome that gravity and it is. The weekly PMO is beginning to flatten. The SCTR is still very strong at 95.8%. The weekly RSI just moved into positive territory.
PBF Energy Inc. (PBF)
EARNINGS: 7/28/2022 (BMO)
PBF Energy, Inc. engages in the operation of a petroleum refiner and supplies unbranded transportation fuels, heating oil, petrochemical feed stocks, lubricants, and other petroleum products in the United States. It operates through the following segments: Refining and Logistics. The Refining segment refines crude oil and other feed stocks into petroleum products. The Logistics segment owns, leases, operates, develops, and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities, and logistics assets. The company was founded on March 1, 2008 and is headquartered in Parsippany, NJ.
Predefined Scans Triggered: New CCI Buy Signals and P&F Low Pole.
PBF is up +0.45% in after hours trading. I have covered it numerous times this year and also in 2021. I'm putting the link to the latest report in. The links to the other reports will be in that last report. June 1st 2022 (position closed on correction), May 3rd 2022 (position closed on correction but at peak it was up over 40%), January 6th 2022 (position open and up +102.21%) and May 6th 2021 (position closed).
My one issue is it reports earnings tomorrow and it was up a hefty +7.83% today which could mean a pullback tomorrow. I don't usually get burned holding into earnings or even buying into them, but I don't do it very much. The RSI is positive and rising. The PMO had a crossover BUY signal today. Stochastics are rising strongly above 80. Relative strength is acceptable for the group, but PBF is doing better. The stop is set below the 5/20-day EMAs.
The weekly RSI is rising after bottoming right on net neutral (50). The weekly PMO is flattening and the SCTR is very strong. If it can get to pre-correction levels, we would see an over 40% gain.
Solaris Oilfield Infrastructure, Inc. (SOI)
EARNINGS: 8/1/2022 (AMC)
Solaris Oilfield Infrastructure, Inc. operates as a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant at oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm's services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.
Predefined Scans Triggered: Elder Bar Turned Green, P&F Bullish Signal Reversal and P&F Double Bottom Breakout.
SOI is up +2.01% in after hours trading. I love today's breakout above the 20-day EMA and overhead resistance. The RSI just moved into positive territory and the PMO had a crossover BUY signal. There is a positive OBV divergence that hasn't resulted in much upside, but it could be hinting that it will come soon. Stochastics are rising and just reached above 80. The group is not doing great, but because SOI is outperforming it, it is beating the SPY's performance. The stop is set between the 200-day EMA and short-term support.
This bounce is coming off extremely strong support. Additionally, it didn't actually have to touch support before moving higher. That is very bullish. The weekly RSI is about to hit positive territory. The SCTR is very bullish at 90.5%.
Don't forget, on Thursdays I look at reader-requested symbols, click HERE to send 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 45% exposed.
I'm required to disclose if I currently own a stock I mention and/or may buy/short it within the next 72 hours.
"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."
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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