Thank you all for your patience as I attended and presented at ChartCon 2022. The event was a huge success. I hope all of you were able to sign up and get the recording. I apologize for the abrupt cut-off of DP Diamonds reports at the end of last week. It couldn't be helped.
The hunt for "Diamonds in the Rough" today wasn't that difficult. It is encouraging to see there are still some good buys out there. Interestingly, I didn't include any Energy stocks, but the sectors I did pull from were Financials, Staples and Materials. You'll want to peek at the "Runners-up" as they have strong looking charts.
Good Luck & Good Trading!
Today's "Diamonds in the Rough": DAR, MOS and PGR.
Runners Up: HII, ADM, BRP, CSTE and LHX.
We didn't have a Diamond Mine trading room last week due to my appearance at ChartCon so here is the prior link:
RECORDING LINK (9/30/2022):
Topic: DecisionPoint Diamond Mine (9/30/2022) LIVE Trading Room
Start Time: Sept 30, 2022 09:00 AM
REGISTRATION LINK (10/14/2022):
When: Oct 14, 2022 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (10/14/2022) LIVE Trading Room
Register in advance for this webinar HERE.
Here is the Monday 10/10 recording:
Welcome to DecisionPoint 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.
Darling Ingredients Inc. (DAR)
EARNINGS: 11/8/2022 (AMC)
Darling Ingredients, Inc. engages in the development and production of natural ingredients from edible and inedible bio-nutrients. It operates through the following segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. The Feed Ingredients segment includes ingredients business such as fats and proteins used cooking oil, trap grease and food residuals collection, the Rothsay ingredients, and the ingredients and specialty products. The Food Ingredients segment comprises gelatin, natural casings and meat by-products, and specialty products activities. The Fuel Ingredients segment consists of biofuel and bioenergy services. The company was founded in 1882 and is headquartered in Irving, TX.
Predefined Scans Triggered: Moved Above Ichimoku Cloud and P&F Low Pole.
DAR is down -2.14% in after hours trading. I was tempted to change the pick when I learned it was taking back today's gain, but ultimately even if price were to finish tomorrow down over 2%, support will be holding. The chart looks very bullish with the RSI positive and rising and the PMO triggering a new crossover BUY signal today. It is nearing an IT Trend Model "Silver Cross" BUY signal (20-day EMA > 50-day EMA). I like the cup with handle shaped chart pattern that preceded today's big breakout. Stochastics are accelerating higher and relative strength studies show a group and stock that are outperforming the market. DAR is a strong performer against its industry group. The stop can be set thinly at around 6.4% or $70.35.
Price is within a trading range and is right in the middle. Should price continue higher, there is a 16%+ gain possible if it reaches overhead resistance. The weekly RSI is in positive territory and the weekly PMO has triggered a crossover BUY signal. The SCTR is a respectable 88.9%.
Mosaic Co. (MOS)
EARNINGS: 10/31/2022 (AMC)
The Mosaic Co. engages in the production and marketing of concentrated phosphate and potash crop nutrients. The company operates its businesses through its wholly and majority owned subsidiaries. It operates through the following segments: Phosphates, Potash, and Mosaic Fertilizantes. The Phosphates segment owns and operates mines and production facilities in North America which produces concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and concentrated crop nutrients. The Potash segment owns and operates potash mines and production facilities in North America which produce potash-based crop nutrients, animal feed ingredients, and industrial products. The Mosaic Fertilizantes segment produces and sells phosphate and potash-based crop nutrients, and animal feed ingredients, in Brazil. The company was founded on October 22, 2004, and is headquartered in Plymouth, MN.
Predefined Scans Triggered: P&F Low Pole.
MOS is down -0.59% in after hours trading. I've been stalking this chart and it is ready for action on today's strong breakout move. Price closed above the 50-day EMA and the PMO triggered a crossover BUY signal today. Stochastics are rising after a quick hiccup. The RSI has moved into positive territory and relative strength studies show outperformance against an already successful group and the SPY. I've set the stop at 6.6% around $49.21.
There is a possible intermediate-term double bottom pattern developing. The weekly RSI is rising and has just gotten above 50. I don't like the negative configuration of the PMO, but we do see relative performance improving as the SCTR nears 70% (my bullish threshold). If it can reach the confirmation line of this probably double-bottom pattern, that would be a 21%+ gain.
Progressive Corp. (PGR)
EARNINGS: 10/13/2022 (BMO) ** REPORTS THIS WEEK **
Progressive Corp. is an insurance holding company. engages in the provision of personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services. It operates through the following segments: Personal Lines, Commercial Lines and Property. The Personal Lines segment includes agency and direct businesses. The Commercial Lines segment writes primary liability and physical damage insurance for automobiles and trucks owned and operated predominately by small business in the auto, for-hire transportation, contractor, for-hire specialty, tow, and for-hire livery markets. The Property segment covers residential property insurance for homeowners, other property owners, and renters. The company was founded on March 10, 1937, and is headquartered in Mayfield Village, OH.
Predefined Scans Triggered: Bullish MACD Crossovers and Moved Above Ichimoku Cloud.
PGR is unchanged in after hours trading. I liked today's strong price action and breakout from a small bull flag. The RSI is positive and the PMO has bottomed in oversold territory. PMO has been getting it right on this stock so its new acceleration higher is very bullish. Stochastics are rising strongly and relative strength for the group is outstanding. PGR has been mostly inline with the group and SPY, but that's improving with the relative strength lines accelerating higher. The stop is set at 6.6% around $115.56.
I like seeing a strong rising trend channel. The weekly RSI has been in positive territory all year which is quite a feat. The weekly PMO is curling back around and the SCTR is a very strong 90.3%. It is already near all-time highs so I'd consider an upside target of 15% around $142.29.
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 am 15% 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."
Regarding BUY/SELL Signals: The signal status reported herein is based upon mechanical trading model signals and crossovers. They define the implied bias of the price index/stock based upon moving average relationships and momentum, but they do not necessarily call for a specific action. They are information flags that should prompt chart review. Further, they do not call for continuous buying or selling during the life of the signal. For example, a BUY signal will probably (but not necessarily) return the best results if action is taken soon after the signal is generated. Additional opportunities for buying may be found as price zigzags higher, but the trader must look for optimum entry points. Conversely, exit points to preserve gains (or minimize losses) may be evident before the model mechanically closes the signal.
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