Stocks screamed higher on Monday with all four indices making substantial moves to the upside. The Russell was the top performing index with a gain of 2.72%. The Nasdaq jumped 1.87% for the second best result.
The S&P gained 1.27% and the Dow moved up 1.18% to round out the gains.
All 10 of the main sectors moved up on the day with seven of them gaining over 1.0%. The tech sector jumped 2.08% to lead the way and the materials sector moved up 1.41%.
The consumer staples sector tacked on 0.63% and the energy sector gained 0.77% as the three that failed to gain at least 1.0%.
My scans continued to grow bullish in nature on Monday as there were 106 bullish signals and only four bearish signals.
The barometer jumped to 67.7 from 38.7 and that is the highest reading for the indicator since July 1.
There were a number of different stocks and ETFs where the chart looked good and the fundamentals were good, for the stocks that is. Right now we are in that stretch where the November options aren’t available for all stocks yet and that has played a big role in deciding today’s trade idea. In the end, I felt the iShares MSCI China ETF (Nasdaq: MCHI) gave us the best set up. In addition to appearing on my bullish list, the ETF generated a bullish signal from Tickeron’s artificial intelligence platform as well. The signal showed an 83% probability of the fund moving higher over the next month.
The daily chart shows at trend line connecting the lows from March and May. The fund just dropped down to that trend line and has since bounced over the last few days. We also see that the daily stochastic indicators are in oversold territory and made a bullish crossover last night.
Buy to open the November 70-strike calls on MCHI at $5.90 or better. These options expire on November 20. I suggest a target gain of 100% and that means the fund will need to reach $81.80. That is only 10.85% from yesterday’s closing price. I recommend a stop at $71.25.
— Rick PendergraftLegendary Stock-Picker Predicts Next 1,000% Stock [sponsor]
34-yr-old Matt McCall made history when he predicted five 1,000% winners on national TV. Now he's doing it all over again. Over the past decade, he's found 18 recommendations that soared 1,000% or more. And he just went public with what he predicts will be his next 1,000% winner. If you've ever wondered how legendary investors find stocks that shoot up 10X - and how you can do it too - click here.