Monday’s trading action saw quite a few swings, but the Nasdaq was the only index of the four that was able to move in to positive territory at any point. The Nasdaq wasn’t able to hold the gain and finished with a loss of 0.27%. That was the best performance of the bunch.
The Dow finished with the worst loss at 3.04% and it was followed closely by the S&P with a decline of 2.93%. The Russell managed to keep its loss to 1.13%.
Eight of the 10 main sectors moved lower on Monday.The communication services sector moved higher by 0.53% and the consumer discretionary sector ticked up 0.16% as the only two sectors to finish with gains.
The energy sector took the worst hit on the day with a drop of 7.17%.
The financial sector fell 5.87% and that was the second worst performance.
In all there were five different sectors that dropped over 5%.
My scans produced 18 bullish signals and one bearish signal on Monday. There were 15 different bond ETFs that generated bullish signals, but I don’t count those in the calculations for the barometer and thus they are not included in the 18 bullish signals.
The barometer fell to 20.7 after adding the results in to the calculation. That is the lowest reading since March 9.
When I started scrolling through the names on the bullish list, I didn’t have to look very far for one that I liked. There was a stock on the list that I had already researched during the day and was looking at for a stock trade. ASML Holding (Nasdaq: ASML) appeared on the bullish list and the company scores an 85 on the EPS rating system and an A on the SMR grading scale.
While it was the weekly chart that got my attention for the possible stock trade, I also took note of how the stock has been able to move higher over each of the last three trading days. The overall market has moved down two of the last three days, so ASML is bucking the trend a little.
Buy to open the May 230-strike calls on ASML at $26.50 or better. These options expire on May 15. With the volatile market and the high option premiums, I suggest a target gain of 75% on this trade. I would also suggest a stop at $210.00.
— Rick Pendergraft
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