Friday saw all four indices moved higher once again and that made it five out of five for the Dow, Russell, and S&P. The Nasdaq saw a small drop on Wednesday otherwise it would have meant all four indices moved up all five days of the past week.
As for the results from Friday, the Russell led the way with a gain of 1.4% which was far and away the best performance. The Nasdaq gained 0.57%, the S&P moved up 0.39%, and the Dow tacked on 0.30%.
The most surprising thing from the sector performances on Friday was that nine of the 10 sectors moved up with the only one moving lower being the tech sector with a loss of 0.22%. The financial sector was the second worst performer with a gain of only 0.03%.
Two sectors gained over 1.0% on the day and they were the materials sector (+1.74%) and the communication services sector (+1.26%).
My scans turned slightly more negative Friday night with 29 bearish signals and 17 bullish signals.
The barometer dropped quite a bit as the big positive readings from the first part of last week continued to diminish in their weighting. The final reading for Friday was 12.4, down from 44.9 on Thursday.
I went through all 46 charts and compared the fundamental ratings with what I was seeing on the chart, but it was the very first stock I looked at that I liked the best. Albertsons Companies (NYSE: ACI) appeared on the bullish list on Friday night and the EPS rating is a 99 while the SMR rating is an A. You can’t get any better than that.
The chart shows a trend line forming with the lows from November and December connecting nicely with the low from last week. It also looks like the 50-day moving average is providing additional support. A similar pattern developed in December before the stock made a huge move higher.
Buy to open the April 15-strike calls on ACI at $2.50 or better. These options expire on April 16, 2021. I suggest a target gain of 100% and that means the stock will need to reach $20. This option was a little strange because the April 15-strike calls were cheaper than the March 15-strike calls. I recommend a stop at $15.75.
— Rick Pendergraft
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