Stocks finished mainly higher on Tuesday with three of the four indices moving higher on the day. All four were in negative territory in the morning session and then rallied in the afternoon. The Dow fell 0.21% as the only index to finish with a loss.
The Nasdaq led the way with a gain of 0.76% and it was followed by the S&P which gained 0.36%. The Russell moved up 0.17%.
The sectors finished evenly split on the day with five moving higher and five moving lower.The communication services sector was the top performer with a gain of 0.94%. The healthcare sector moved up 0.68% as the second best performer.
The energy sector flipped the script from Monday and dropped 1.40% on Tuesday.
That was the worst performance on the day. Utilities fell 0.95% and that was the second worst performance.
My scans remained positive yesterday with 24 bullish signals and 15 bearish signals.
The barometer jumped to 8.1 from 0.0 once these figures were added in to the equation.
I have a third straight bullish trade idea for you today. This time the subject company is Futu Holdings (Nasdaq: FUTU). The Hong Kong based digital brokerage company was on the bullish list last night and the company scores a 78 on the EPS rating scale and it gets an A in the SMR grading system.
We see on the chart how the stock has been trending higher since the beginning of May with a trend line connecting the lows from June and July. The stock just hit the trend line and the daily stochastic indicators are in oversold territory for the first time since March. The indicators made a bullish crossover yesterday and similar crossovers have preceded big upward moves by the stock.
Buy to open the October 30-strike calls on FUTU at $6.10 or better. These options expire on October 16. I suggest a target gain of 75% and that means the stock will need to reach $40.68. The stock peaked at $40.99 in early August, so it won’t have to break to a new high to reach our target. I recommend a stop at $31.20.
— Rick Pendergraft
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