Trade This Stock to Double Your Money in Eight Weeks

Friday saw the indices all open higher and then fall in the morning session. At midday all four of the main indices were in negative territory with pretty decent losses. They would rally in the afternoon session and three of the four would end up with gains.

The Russell led the way with a gain of 0.63% and the Nasdaq moved up 0.37%. The S&P would finish with a gain of 0.34%, but the Dow was unable to make it all the way back to positive ground and would finish with a loss of 0.1%.

Eight of the 10 sectors would move higher on the day, but none would finish with a gain over 1.0%. The communication services sector led the way with a gain of 0.94% and it was followed by the consumer discretionary sector which moved up 0.88%.

The energy sector finished with the biggest loss, but that was only -0.49%. The tech sector was the other sector in the red and it only lost 0.11%.

My scans turned remained positive on Friday with 27 bullish signals and nine bearish signals.

The barometer moved up to an even 20.0, up from 15.7 on Thursday.

For today’s trade idea, I have a second straight bullish trade. The company is Boston Scientific (NYSE: BSX) and it appeared on my bullish scan, but its fundamentals are only a little above average. The EPS rating is average at 56 and the SMR rating is a little above average with a B.

The stock appears to be caught in a pretty sizable range with the $36.80 area acting as the lower end of the range and the $42 area acting as the upper end. The stock just hit the lower end of the range and the oscillators were in oversold territory. The stochastic indicators made a bullish crossover on Friday and that makes me think the stock will head back up to the $42 area in the coming weeks.

Buy to open the December 35-strike calls on BSX at $3.50 or better. These options expire on December 18, 2020. I suggest a target gain of 100% and that means reaching the $42 level once again. I recommend a stop at $36.00.

— Rick Pendergraft

Legendary Stockpicker: "Buy this A.I. stock NOW" [sponsor]
His award-winning system pinpointed NVDA and META before both stocks doubled. Now it's flashing "BUY" on this under-the-radar A.I. stock. MORE HERE...

Rick Pendergraft, Trades Of The Day

Rick Pendergraft has been studying, trading, analyzing and writing about the investment markets for over 30 years. He has worked for some of the largest financial publishers in the world and he has been quoted in the Wall Street Journal, USA Today, the New York Times and the Washington Post. In addition, he has been interviewed on Bloomberg, CNBC and Fox Business News. Rick's analysis process includes fundamental, sentiment and technical analysis.