Stocks dropped out of the gate on Tuesday after Apple’s revenue warning and Walmart’s earnings miss. The Nasdaq managed to stage a comeback and closed with a gain of 0.02%, but the other three indices finished in the red.
The Dow took the worst hit with a drop of 0.56%, but it closed well off its low. The S&P fell 0.29% and the Russell dropped 0.24% to round out the losses.
Eight of the 10 main sectors fell on the day, but none of them saw a drop greater than 1.0%.The financial sector took the biggest loss at 0.87% and it was followed by the energy sector which dropped 0.82%.
The utilities sector was the top performer with a gain of 0.84% and the communication services sector joined it in positive territory with a gain of 0.67%.
My scans continued to turn more negative on Tuesday night with 104 stocks on the bearish list and only four on the bullish list.
The barometer fell to -53.5 once these results were added in to the equation. This is the lowest reading since the -54 reading on January 22.
For a third straight day I have a bearish trade idea and this one is on a stock that I suggested puts on less than a month ago. Olin Corp. (NYSE: OLN) appeared on the bearish list back on January 22 and I suggested puts on the stock. The stock appeared on the bearish list again last night and I am recommending puts on it again. The company’s fundamental readings are bad with an EPS rating of 6 and an SMR rating of a D.
The same trend line that caused me to recommend the bearish play in January is now coming in to play again. The stock did surpass the trend line for one day, but now it dropped back below the line. The stochastic indicators reached overbought territory again and made a bearish crossover last night.
Buy to open the April Week 1 18-strike puts on OLN at $1.45 or better. These options expire on April; 3. In order for these options to double the stock will need to drop to $15.10. The stock fell all the way to $14.37 in January, so it won’t have to break to a new low. I suggest a target gain of 100% with a stop at $18.05.
— Rick Pendergraft
Collect up to 5 dividend checks per week [sponsor]Hi, I'm Tim Plaehn, and I just did the math in my own, real-money portfolio. I'll be collecting 70 dividend checks this quarter. That's nearly 5 per week on average. Automatically… no trading, no options, no work. You don't need a lot of money. You can be retired or near retirement... Either way, I'll show you my #1 plan to quickly collect dividends like clockwork from high-quality, cash-flowing business. Click here to learn how to collect up to 5 dividends a week.