With the first phase of the trade agreement reached, stocks were set up for a good day on Monday and the indices didn’t disappoint. All four of the main indices experienced solid gains.
The Nasdaq led the way with a gain of 0.91%. The Russell tacked on 0.73% and the S&P was close behind with a gain of 0.71%. The Dow only gained 0.36% and was held back by a 4.3% drop in Boeing.
[hana-code-insert name=’adsense-article’ /]The industrial sector lost 0.05% and that can also be attributed to Boeing’s loss.It was the only sector that lost ground on Monday.
Of the nine sectors that gained ground, the energy sector was the top performer with a gain of 1.34%.
The utilities sector tacked on 1.25% and the healthcare sector moved up 1.08%.
These were the only three sectors to gain more than 1.0%.
My scans turned in another negative result on Monday with 42 names on the bearish list and 28 names on the bullish side.
The barometer inched up a little despite the negative result. The final reading came in at -18.7, up from -22.3.
The scan results were rather interesting last night as there were more negative marks for poor fundamentals on the bullish list than there were on the bearish list and vice versa. I was able to find a few stocks that were of interest, but the one that stood out was STORE Capital (NYSE: STOR) and it appeared on the bullish list. The company scores a 91 on the EPS rating and an A on the SMR rating.
The weekly chart for STORE shows the upward trend the stock has been in for the last few years. The stock just hit the lower rail of the trend channel and the daily stochastic readings were in oversold territory and made a bullish crossover last night.
Buy to open the April 35-strike calls on STOR at $3.10 or better. These options expire on April 17. In order for these options to double the stock will need to reach $41.20. That price is a little higher than the high from November, but I think the stock can get there given the time from now until expiration. I suggest a target gain of 100% with a stop at $36.50.
— Rick Pendergraft
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