On Wednesday afternoon as I was preparing for the DecisionPoint Show, I did a scan of the sectors in preparation and the Industrial Sector SPDR (XLI) caught my eye after a nice gap up. I scanned my Tuesday DecisionPoint Diamonds and sure enough, I had presented an Industrial stock to my Diamond readers! Today, I found another “diamond in the rough” Industrial you need to review at the bottom of the article.
Let’s start with the chart of XLI. I continue to like this sector and the two stocks below it. You can see in the thumbnail what intrigued me before the DecisionPoint Show on Wednesday… price closed above the previous short-term top and the Price Momentum Oscillator (PMO) triggered a crossover BUY signal. It has only continued higher since then and I believe it will follow-through with more upside movement in spite of overhead resistance at the June top.
My “Diamond of the Week” pick for the DecisionPoint Show is below with TUESDAY’s Diamonds Report commentary and beneath is the up to date chart in yellow. I still like this set-up:
“Teledyne Technologies (TDY) – Earnings: 10/21/2020 (BMO)
Teledyne Technologies, Inc. engages in the provision of electronic and communication products for wireless and satellite systems. It operates through the following business segments: Instrumentation; Digital Imaging; Aerospace & Defense Electronics; and Engineered Systems. The Instrumentation segment includes monitoring and control instruments for marine, environmental, and industrial applications. The Digital Imaging segment offers sensors, cameras, and infrared systems. The Aerospace & Defense Electronics segment provides electronic components, data acquisition, subsystems, and communications equipment. The Engineered Systems segment develops and produces electrochemical energy systems and small turbine engines.
We could be seeing a double-bottom forming on TDY. Price closed above the 20-EMA and the RSI just moved into positive territory. The OBV is confirming the move and the PMO just triggered a BUY signal. The SCTR is beginning to improve.
The weekly PMO is trying to decelerate in oversold territory and upside potential is great.”
** PRICES ARE GOING WAY UP! **
Subscribe now to lock in our low prices with a one-week trial (coupon code: dptrialcw)! You can thoroughly check us out as we have all of our DP Alert and DP Diamonds reports archived back to January!
DecisionPoint Diamonds are becoming even more indispensable! Not only do you get 60 “Diamonds in the Rough” stocks/ETFs per month with complete analysis that includes stops/targets… there will now be a Friday Diamonds Recap that will look at the performance of each week’s Diamonds and their prospects moving forward. Over the weekend we clean the slate and start over again.
Included for my Diamonds subscribers-only, there will be a new one-hour trading room, “The DecisionPoint Diamond Mine” on Fridays! It will be an opportunity for us to talk live, review current and past Diamonds for possible entries/exits/stops/targets and take your questions and symbol requests in this intimate trading room.
DecisionPoint Alert subscribers will continue to enjoy clear, concise analysis of the overall market including Dollar, Gold, Gold Miners, Oil and Bonds from both Erin and Carl Swenlin. You are prepared each market day knowing the implications of market behaviors for that day, week or month!
All subscribers have access to our exclusive ChartLists that are annotated and curated by Carl Swenlin. Know what he thinks is important on all of the sectors, indexes, indicators and more!
Today’s ChartWatchers “Diamond of the Week”:
FYI, in the July 24th ChartWatchers Newsletter, Natural Gas (UNG) was the “Diamond of the Week”.
RBC Bearings Inc (ROLL) – Earnings: 10/29/2020 (AMC)
RBC Bearings, Inc. engages in the design, manufacture, and marketing of engineered precision bearings and products. It operates through the following segments: Plain Bearings, Roller Bearings, Ball Bearings and Engineered Products. The Plain Bearings segment produces self-lubricating, metal-to-metal designs and other sub-classes, including rod end bearings, spherical plain bearings, and journal bearings. The Roller Bearings segment manufactures anti-friction products that utilize cylindrical rolling elements. The Ball Bearings segment offers high precision aerospace, airframe control, and thin section and industrial ball bearings. The Engineered Products segment consists engineered hydraulics and valves, fasteners, precision mechanical components, and machine tool collets used in aircraft and submarine applications, as well as aerospace and defense aftermarket services.
I like this chart even better than TDY. RBC just broke out of a declining trend alongside a new PMO BUY signal. The RSI has just moved positive above net neutral (50). I feel a little dejavu from Tuesday looking at the TDY chart. The indicators are so similar. However, I see something that TDY doesn’t have—a positive divergence with On-Balance Volume (OBV). I show that it would take a 10% stop to get you to important support.
The weekly PMO has just turned up above the signal line and above the zero line which I find especially bullish. I’ve marked several areas for upside targets.
Conclusion: I already had an affinity for the Industrial Sector on Wednesday afternoon and I still like it. It seems that money is beginning to rotate into this sector as John Murphy described in his article today. It was the highest gainer among the SPDR Sectors this week. The two Industrial stocks above do seem to have some great upside potential based on the technicals. Be sure and sign up on our free email list to learn more about the new DecisionPoint Trading Room coming in late August! I can’t wait to begin interacting live again with all of you! And don’t forget we are raising our rates, so lock in a good deal now with a 1-week trial (coupon code: dptrialcw).
Technical Analysis is a windsock, not a crystal ball.
Helpful DecisionPoint Links:
DecisionPoint Alert Chart List (subscribers only)
DecisionPoint Golden Cross/Silver Cross Index Chart List (subscribers only)
DecisionPoint Sector Chart List (subscribers only)