Usually when I run my scans for ETFs, I don't get that many results. I generally have to do my own visual search of my ETF Tracker list to find good candidates. Today I had over a 150! Many of the ETFs had themes, but in general, most were ETFs that follow general indexes and sectors. There were also quite a few international ETFs.
I have an international ETF that was actually requested for tomorrow, but it showed up in one of my scans and I like the chart. Another follows the Cloud Computing industry group and has plenty of upside potential. Last is an international Metals & Mining ETF. Gold Miners have been tearing it up, but now general mining is beginning to look interesting.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": CLOU, FXI and PICK.
ETFs to Review: FTXN, VDE, EWI, EWW, EWP, XES, XME and BBEU.
RECORDING LINK (3/24/2023):
Topic: DecisionPoint Diamond Mine (3/24/2023) LIVE Trading Room
Recording Link
Passcode: March#24
REGISTRATION for 4/3/2023:
When: Apr 3, 2023 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine (4/3/2023) 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 (3/27):
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.
Global X Cloud Computing ETF (CLOU)
EARNINGS: N/A
CLOU provides exposure to a market-cap weighted global equity index of companies involved in the cloud computing industry. Click HERE for more information.
Predefined Scans Triggered: Elder Bar Turned Green, P&F High Pole and Entered Ichimoku Cloud.
CLOU is up +0.40% in after hours trading. CLOU saw a nice breakout today above the 5/20/50-day EMAs. It is maintaining its rising trend and with today's move above those key moving averages, we had a positive crossover. The 5-day EMA moved above the 20-day EMA for a ST Trend Model BUY Signal. The 20-day EMA is getting very close to the 50-day EMA. It will be a "Silver Cross" if it gets above and that would trigger an IT Trend Model BUY Signal. The RSI has moved into positive territory and the PMO generated a crossover BUY Signal. The OBV is confirming the rising trend. Stochastics just moved above 80 and relative strength is slightly better than the SPY right now. You could set a deeper stop, but really if it drops below $16.75, you won't really want it anymore. I have it set at 7.2% or $16.24.
We have a bullish cup with handle or maybe even a reverse head and shoulders developing. The weekly RSI is above net neutral (50) and the weekly PMO is rising and is nearly above the zero line. Upside potential based on the chart patterns would be higher than 34.5%, but I think that is a good level to shoot for. The SCTR could be better, it isn't in the "hot zone"* above 70, but it isn't in the basement either.
*We call it the "hot zone" because it implies that the stock/ETF is in the top 30% of its "universe" (large-, mid-, small-caps and ETFs) as far as trend and condition, particularly in the intermediate and long terms.
iShares China Large-Cap ETF (FXI)
EARNINGS: N/A
FXI tracks a market-cap-weighted index of the 50 largest Chinese stocks traded on the Hong Kong Stock Exchange. Click HERE for more information.
Predefined Scans Triggered: None.
FXI is unchanged in after hours trading. Here we have a bullish Adam & Eve double-bottom. It hasn't been confirmed yet, but given it closed for a second day above all key moving averages and has positive indicators, I am expecting it to rally to the January top at a minimum. That would also fulfill the minimum upside target of the chart pattern. The RSI is positive and the PMO is on a crossover BUY signal. The OBV is confirming the rally and Stochastics are above 80. It's beginning to show relative strength against the SPY. The stop can be set deeper, but I decided to set it below the February low at 6.7% or $27.43.
There is a very large reverse head and shoulders forming on the weekly chart. The left shoulder is a bit wonky but counts in my opinion as a shoulder. The weekly RSI just moved into positive territory and the weekly PMO has bottomed above its signal line which is especially bullish. The SCTR is in the "hot zone" above 70. The head and shoulders says that we should see a test of the 2021 high. I prefer to set the target halfway up into the next trading range.
iShares MSCI Global Metals & Mining Producers ETF (PICK)
EARNINGS: N/A
PICK tracks a market-cap-weighted index of global metals mining, extraction or production firms, excluding gold and silver mining firms. Click HERE for more information.
Predefined Scans Triggered: P&F Double Bottom Breakout.
PICK is up +0.67% in after hours trading. I didn't annotate it, but I believe we have a double-bottom that has just been confirmed. Today's breakout also took price back above the 20-day EMA. The RSI is almost in positive territory and the PMO is nearing an oversold crossover BUY signal. The OBV is confirming the rally, although I must say, given the amount of volume this month I would have liked to see it get even higher. Stochastics have just moved into positive territory and the ETF is beginning to slowly outperform the SPY. I've set the stop below support at 7.6% or $38.54.
The weekly RSI has reversed and is back in positive territory. The weekly PMO unfortunately just gave us a crossover SELL signal. The SCTR is well within the "hot zone" above 70. Price has bounced off strong support. It appears the weekly PMO is decelerating somewhat, but just in case I'd look at this as a short-term trade until it reverses back up.
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 28% long, 2% short.
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
(c) Copyright 2023 DecisionPoint.com
Watch the latest episode of DecisionPoint Trading Room 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