I made to Utah and am happy to have arrived safely. The weather was snowy and we rode behind a snow plow two different times on the interstate. We don't get to "enjoy" snow where I live so it was actually a wonderful ride seeing it falling, getting clear views of snowy mountains and of course seeing my brother and his family when we arrived.
I titled today's article with "I'm Hungry" because while reviewing ETFs for "ETF Day", most had something to do with commodities. There was one odd ETF was Breakfast Commodities Strategy ETF (BRKY) but only trades in the couple of hundreds on volume so I left it out.
I found a new ETF that covers commodities that we'll look at and CORN. I opted to include Oil Equipment & Services ETF (XES) as WEAT I recently covered. In spite of today's pullback in Energy, I like the group.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": COMT, CORN and XES.
Runner-ups: PFIX, DBA, PALL, URA, WEAT and KSA.
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RECORDING LINK (12/23/2022):
Topic: DecisionPoint Diamond Mine (12/23/2022) LIVE Trading Room
Start Time: Dec 23, 2022 09:00 AM
Passcode: Dec=23rd
REGISTRATION for 12/30/2022:
When: Dec 30, 2022 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (12/30/2022) LIVE Trading Room
Register in advance for this webinar HERE
After registering, you will receive a confirmation email containing information about joining the webinar.
Here is the last recording (no recording on 12/26):
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.
Stop levels are all rounded down.
iShares Commodities Select Strategy ETF (COMT)
EARNINGS: N/A
COMT tracks a broad-market commodity index that utilizes a flexible dynamic roll strategy. Click HERE for more information.
Predefined Scans Triggered: None.
COMT is up +3.40% in after hours trading which easily makes up for today's -0.92% decline. If that holds up, we will see a breakout above the 50-day EMA. I didn't annotate it, but this looks like a double-bottom pattern which is bullish. Yesterday's move technically triggered the pattern and today looks like a pullback to the breakout point rather than a breakdown. the RSI is currently negative, but only barely. The PMO is on an oversold crossover BUY signal. Stochastics are above 80 and still rising vertically. Relative strength is improving. The stop is set at 5% around $26.57.
There is a large bullish falling wedge on the weekly chart. The weekly RSI and PMO aren't positive yet, but we do see the StockCharts Technical Rank (SCTR) is rising telling us that the trend and condition in the intermediate- to long-terms is improving. The stop is just 5% so I feel fine limiting upside potential to 12.7%, but it could move to test all-time highs before it's all said and done.
Teucrium Corn Fund (CORN)
EARNINGS: N/A
CORN tracks an index of corn futures contracts. It reflects the performance of corn by holding Chicago Board of Trade corn futures contracts with three different expiration dates. Click HERE for more information.
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 Entered Ichimoku Cloud.
CORN is up +0.41% in after hours trading. My only problem with this chart is that price has already rallied strongly in a parabolic fashion. Parabolic of any sort always worry me. Other than that, the RSI is positive/rising and not overbought. The PMO is on an oversold crossover BUY signal and Stochastics are rising above 80. Volume is also coming in based on the OBV. Relative strength is excellent.
The reversal happened on support and price is now above both the 17-week and 43-week EMAs. The weekly RSI just moved into positive territory and the weekly PMO is turning up. The SCTR is outstanding at 97.1%.
SPDR S&P Oil & Gas Equipment & Services ETF (XES)
EARNINGS: N/A
XES tracks an equal-weighted index of companies in the oil & gas equipment and services sub-industry of the S&P Total Market Index. Click HERE for more information.
Predefined Scans Triggered: Elder Bar Turned Blue, Evening Star, P&F Ascending Triple Top Breakout, Entered Ichimoku Cloud and P&F Double Top Breakout.
XES is up +4.33% in after hours trading which will cancel out today's -3.10% decline. The rising trend wasn't compromised today so it wasn't a hard selection. The RSI is positive and will turn up as soon as price does. The PMO is only a few hundredths of a point away from a crossover BUY signal. Stochastics are above 80 and relative strength continues to get stronger. The stop is set below the last price bottom at 6.9% around $71.31.
The weekly chart is very favorable. The weekly RSI is in positive territory and the weekly PMO is bottoming above its signal line which is especially bullish. The SCTR can't get much better than 99.4%.
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 12% exposed with a 2% hedge.
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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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."
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.
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