Stocks saw a bit of mixed action on Monday with three of the indices moving lower and one moving higher. The Dow led the way with a gain of 0.11%. The Russell took the biggest hit at -0.67%. The Nasdaq dropped 0.44% and the S&P fell 0.16%.
Of the 10 main sectors, seven fell and three moved higher. The utilities sector led the way with a gain of 0.50%. The healthcare sector gained 0.39% for the second best performance and the consumer staples sector tacked on 0.22% as the third sector in positive territory.
[hana-code-insert name=’adsense-article’ /]The worst performer of the bunch was the financial sector with a loss of 0.84%.The communication services sector got hit with the second biggest loss at 0.52%.
My scans turned decidedly more bearish last night with 77 names on the bearish list and only eight on the bullish side.
The barometer dropped in to negative territory as a result of the large negative skew, falling from 0.9 to -30.8.
Today’s trade idea is a bearish one on Tanger Factory Outlet Centers (NYSE: SKT).
The company appeared on the bearish list and its fundamental ratings can be described as average at best. The EPS rating is a 48 and the SMR rating is a C. The company is scheduled to report earnings on Wednesday so this is a riskier trade than usual.
We see on the daily chart that the stock has been trending lower since January with a trend channel defining the swings within the overall trend. The stock just hit the upper rail and its 50-day moving average. The stock is overbought based on the stochastic readings and they just made a bearish crossover.
Buy to open the September 17-strike puts on SKT at $1.15 or better. These options expire on September 20. In order for these options to double the stock will need to fall to $14.70. That level is lower than the low in June, but the lower rail should be down near that level in the next month and a half.
— Rick Pendergraft
[hana-code-insert name=’stansberry-article’ /]