Today is Reader Request Day but no symbols came in so it is all on the scans today. I won't discontinue Reader Request Day, but I do think I'll be adding to the list each week myself. If you do have any requests or questions come up during the week, please forward them to me. Take advantage!
My picks today are all in defensive sectors of the market. I have a Real Estate stock, a Healthcare stock and a Utility. It was very difficult to find good charts as most of the market is in declining trends. I try to avoid this and I did an okay job of it today. The scans were plentiful, but full of declining trends. I'm not including runner-ups today, I just didn't see much I liked.
Tomorrow morning is the Diamond Mine trading room! Everything was moved up a day this week to accommodate the Friday holiday. See you in the morning!
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": ADC, MCK and NWE.
Diamond Mine Trading Room:
RECORDING & DOWNLOAD LINK (4/11/2025):
Topic: DecisionPoint Diamond Mine (4/11/2025) LIVE Trading Room
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When: April 17, 2025 09:00 AM Pacific Time (US and Canada)
Topic: DecisionPoint Diamond Mine LIVE Trading Room
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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.
Agree Realty Corp. (ADC)
EARNINGS: 2025-04-22 (AMC) ** Reports Next Week **
Agree Realty Corp. is a real estate investment trust, which engages in the ownership, acquisition, development, and management of retail properties net leased to industry tenants. It focuses on the long-term, fee simple ownership of properties net leased to national and large regional retailers. The company was founded by Richard Agree in 1971 and is headquartered in Royal Oak, MI.
Predefined Scans Triggered: New 52-week Highs and New CCI Buy Signals.
ADC is down -1.23% in after hours trading so a better entry is likely. We had a breakout today, something that I didn't see on any charts today so this one had to be presented. It is at a closing new 52-week high. The RSI is not overbought which is saying a lot given the strong rally to this point. The PMO is on a new Crossover BUY Signal above the zero line. Stochastics have gotten above 80 and relative strength lines are all rising strongly. We should get some follow-through here. The stop is set below support somewhat arbitrarily at 6.7% or $72.73.
Price is leaving a high level consolidation zone right now with a nice rising trend. The weekly RSI is positive and not overbought. The weekly PMO is rising toward a Crossover BUY Signal. The StockCharts Technical Rank (SCTR) is in the hot zone* above 70. Consider a 17% upside target to about $91.21.
*If a stock is in the "hot zone" above 70, it implies that it is stronger than 70% of its universe (large-, mid-, small-caps and ETFs) primarily in the intermediate to long terms.
McKesson Corp. (MCK)
EARNINGS: 2025-05-08 (AMC)
McKesson Corp. engages in providing healthcare services. It operates through the following segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs. The RxTS segment offers prescription price transparency, benefit insight, dispensing support services, third-party logistics, and wholesale distribution. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers. The International segment refers to the distribution and services to wholesale, institutional, and retail customers in Europe and Canada. The company was founded by John McKesson and Charles Olcott in 1833 and is headquartered in Irving, TX.
Predefined Scans Triggered: P&F Double Top Breakout.
MCK is up +2.72% in after hours trading. This one has a beautiful rising trend that was only interrupted by the deep market decline. Since then it has been making its way slowly higher. The RSI is positive and not overbought. The PMO is crossing above its signal line. It is also very flat above the zero line and that implies pure strength. Stochastics look pretty good as they are in positive territory and are still technically rising. Relative strength is beginning to pick up again for the group. MCK is a clear leader within the group and it is outperforming the SPY easily. The stop is set beneath the prior low at 7.9% or $639.81.
The rising trend on the weekly chart is very impressive. It stumbled in late 2024 but it has righted the ship. The one problem is that it is overbought on the RSI so it may be due for some consolidation. The weekly PMO is rising well above the zero line on a Crossover BUY Signal and the SCTR is at the top of the hot zone. Consider a 17% upside target to $812.80.
NorthWestern Corp. (NWE)
EARNINGS: 2025-04-29 (AMC)
NorthWestern Energy Group, Inc. engages in the provision of electricity and natural gas to customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. It operates through the following segments: Electric, Natural Gas, and Other. The Electric segment is involved in the regulated electric utility business primarily providing generation, transmission, and distribution services to customers in the Montana and South Dakota jurisdictions. The Natural Gas segment focuses on the natural gas utility business primarily providing production, storage, transmission, and distribution services to customers in the Montana, South Dakota, and Nebraska jurisdictions. The company was founded in November 1923 and is headquartered in Sioux Falls, SD.
Predefined Scans Triggered: Parabolic SAR Buy Signals.
NWE is unchanged in after hours trading. This is still in a rising trend out of the December low. It is bouncing off support at the October low, December high and March low. The RSI is positive and not overbought despite this nice rally. The PMO is nearing a Crossover BUY Signal well above the zero line. Stochastics are rising in positive territory. Relative strength looks excellent for the group and NWE. I've set the stop below support at 7.8% or $53.19.
The one thing that gives me pause is that price is at the top of a long-term trading range that could hold firm. This is a nice rising trend out of the 2023 low and we do have positive indicators so we will look for a breakout. The weekly RSI is positive and not overbought. The weekly PMO is rising on a Crossover BUY Signal. The SCTR is well within the hot zone above 70. Consider a 17% upside target to about $67.50.
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 "Under the Hood" 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 10% long, 0% 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
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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.
Helpful DecisionPoint Links:
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
For more links, go to DecisionPoint.com