Stocks started off in negative territory on Wednesday, but rallied back and posted some decent gains. All four main indices finished higher, but the Nasdaq really stood out with a gain of 1.13%. The S&P was up 0.58% and the Dow moved higher by 0.45%. The Russell lagged the others, but it still gained 0.34%.
Of the 10 main sectors, seven moved higher on Wednesday. The communication services sector was far and away the best performer with a gain of 2.24%.
The financial sector was the worst performer with a loss of 0.37%.
The materials sector was down 0.26% and the utilities sector dropped 0.17%.
My scans remained on the positive side last night and they shifted to more bullish posture.
There were 53 names on the bullish side and 15 on the bearish side.
The barometer edged up slightly, from 34.4 to 34.9.
Today’s trade idea is from the bullish list once again and it is on Apple (Nasdaq: AAPL). The stock appeared on the bullish list and it has solid fundamental ratings. The EPS rating is at 62 and the SMR rating is an A.
The daily chart shows that a trend channel has formed over the last few months and Apple has just bounced off of the lower rail of the channel. The 50-day moving average is also providing support. The overbought/oversold indicators reached their lowest levels since December, but have turned higher in the last few days.
Buy to open the July $190-strike calls on AAPL at $9.00 or better. These options expire on July 19. In order for these options to double the stock will need to reach $208, at least from an intrinsic value standpoint. That is lower than the recent high and below the upper rail of the channel. I suggest a target of 100% with a stop at $185.00.
— Rick PendergraftClaim a 100% Risk-Free Trial to DailyWealth Trader... [sponsor]
For a limited time, get immediate access to "the best of" Stansberry Research's trading ideas. As one reader said: "I am 11 for 11 so far... in less than 2 months." Learn more here.