Stocks vacillated back and forth from gains to losses on Friday and at the end of the day only one of the indices managed to register a gain. The Dow edged up 0.12%.The Nasdaq was the worst performer on the day and spent the least amount of time in positive territory. At the close the index was down 0.21%.
The Russell fell 0.12% and the S&P dropped a meager 0.02%.
Six of the 10 sectors fell on Friday while four gained ground.The utilities sector dropped 0.87% as the worst performer and it was followed by the healthcare sector which fell 0.20%.
The energy sector led the way with a gain of 0.95% while the financial sector gained 0.40% as the second best performer.
My scans flipped to a positive reading on Friday with 25 bullish signals and 10 bearish signals.
The barometer jumped from -39.5 to -16.4 once these results were added in to the calculation.
One of the common themes on the bullish list from Friday night was precious metals stocks and ETFs. I looked at several possible trade setups and liked the one on Wheaton Precious Metals (NYSE: WPM) the best. The company scores an 85 on its EPS rating and the SMR grade is a B.
We see the tremendous rally the stock has been on since March and it has coincided with the huge rally in silver. The funny thing about silver is that it has seen sentiment toward the metal fall in the last few weeks despite the tremendous rally. The daily stochastic readings for Wheaton are in oversold territory for only the second time since the March low. The other time was in June and the stock rallied over 50% in just under two months.
Buy to open the October 49-strike calls on WPM at $4.95 or better. These options expire on October 16. I suggest a target gain of 75% and that means the stock will need to reach $57.67. The stock peaked at $57.89 a few weeks ago, so it won’t have to break through that potential resistance to hit our target. I recommend a stop at $48.40.
— 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.