Stocks soared again on Monday and all four of the indices climbed significantly. All four gained at least 1.0% on the day and all 10 sectors moved higher.
The Russell led the indices for a second straight day and this time it jumped 1.92%. The Dow tacked on 1.7% as the second best performer. The S&P moved up 1.2% and the Nasdaq lagged the others once again, but this time it was closer with a gain of 1.13%.
The energy sector led the way again as it jumped 4.5%.The utilities sector was the second best performer with a gain of 2.68%.
The industrial sector gained 2.01% to give us three sectors with gains greater than 2.0%.
There were three sectors that failed to gain at least 1.0%.
The materials sector only gained 0.13%, tech tacked on 0.50%, and the healthcare sector only gained 0.69%.
My scans remained extremely skewed to the bearish side with 117 bearish signals and 18 bullish signals.
The barometer fell a little lower once these results were added in, dropping from -116.5 to -121.4.
There were finally a few stocks on the bullish list that I liked the trade setup and thus I have a bullish trade idea for you today. Alternative energy company Enphase Energy (Nasdaq: ENPH) appeared on the bullish list and it has strong fundamental ratings. The EPS rating is 76 and the SMR rating is an A.
In addition to the bullish signal and the fundamental ratings, the chart shows the stock in an upward trend with a trend line connecting the lows from the last few months. The stock just hit the trend line in the last few days. The stochastic indicators are in oversold territory and made a bullish crossover yesterday.
Buy to open the July 50-strike calls on ENPH at $7.10 or better. These options expire on July 17. I suggest a target gain of 75% and that means the stock will need to reach $62.50. The stock was above $70 just a few weeks ago, so it won’t have to break through that high. I suggest a stop at $49.50.
— Rick Pendergraft
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