Stocks moved higher on Tuesday and all four of the main indices moved higher as a result. The S&P led the way with a gain of 0.68% and it was followed by the Russell which moved up 0.66%. The Dow tacked on 0.65% and the Nasdaq lagged slightly but still gained 0.58%.
Nine of the 10 main sectors moved higher on Tuesday with the utilities sector being the lone sector to finish in the red with a loss of 0.63%.
[hana-code-insert name=’adsense-article’ /]The materials sector led the way with a gain of 2.06% on the day.The industrial sector moved up 1.26% and the financial sector gained 1.11% as the only other sectors to gain more than 1.0%.
The scans continued to move deeper in to positive territory on Tuesday with 38 names on the bullish list and 14 names on the bearish list.
The positive difference of 24 was the best reading since June 28.
The third straight positive reading was enough to move the barometer in to positive territory with a reading of 14.
With the barometer turning positive and with an abundance of stocks on the bullish list, I have a third straight bullish trade idea for you today and it is on HUYA Inc. (NYSE: HUYA). The company scores a 75 on the EPS rating scale and it gets an A on the SMR rating system.
We see on the chart that the stock has been moving higher since December and there is a trend line that connects the lows from the last eight months. The daily stochastic readings are in oversold territory and made a bullish crossover last night. The 10-day RSI was in oversold territory before yesterday’s big move to the upside.
Buy to open the September 21-strike calls on HUYA at $3.10 or better. These options expire on September 20. In order for these options to double the stock will need to reach $27.20. This is above the most recent high in early July, but below the 52-week high in March. I suggest a target gain of 100% with a stop at $21.00.
— Rick Pendergraft
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