The General Price Momentum Oscillator (PMO) scan threw 12 stocks at me today. We're still not seeing huge numbers coming in on these scans, which tells me to proceed with caution. Additionally, it's been interesting to see so many Industrials and REITs in the results. Today, ManTech Intl Corp (MANT) appeared in the results again; you can read about it in yesterday's Diamonds report. We did see another defense industry stock pop up today, which I've included below.
Welcome to the "DecisionPoint Daily Diamonds", a newsletter in which we highlight five "diamonds in the rough" taken from the results of one of my DecisionPoint scans. Remember, these are not recommendations to buy or sell, but simply stocks that I found interesting. The objective is to save you the work of the initial, tedious culling process, but you need to apply your own analysis and to see if these stocks pique your interest. There are no guaranteed winners here.
Current Market Outlook:
Market Trend: DP Trend Models are currently on BUY signals.
Market Condition: The market is overbought now, with the PMO in overbought territory. However, it is important to remember that the market can sustain overbought conditions for some time in a bull market.
Market Environment: It is important to consider the "odds" for success. Here are the current percentages on the Silver and Golden Cross Indexes, which are continuing to rise:
- Silver Cross: 67.4% SPX ITTM Buy Signals
- Golden Cross: 65.2% SPX LTTM Buy Signals
Of the 12 results I got today from the General PMO scan (minus the SCTR requirement > 75), I narrowed it down to these five:
Full Disclosure: I do not own any of the stocks above, but NOC is on my watchlist. I'm currently about 60% in cash and, given my DecisionPoint indicators (see this week's DP Alert), I may wait a bit longer to open new positions.
Watch the latest episode of DecisionPoint with Carl & Erin Swenlin LIVE on Mondays 5:00p EST or on the StockCharts TV YouTube channel here!
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
erinh@stockcharts.com
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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