The indices opened higher and remained there throughout the day on Thursday. Stronger than expected retail sales and initial jobless claims helped boost investor confidence and futures were higher heading in to the open.
The Nasdaq led the way with a gain of 1.31% and it was followed by the S&P with a gain of 1.11%. The Dow moved up 0.90% and the Russell rallied by 0.42%. The Russell was the only one of the four that spent any time in negative territory on the day.
Eight of the 10 main sectors moved higher on the day and they were led by the tech sector with a gain of 1.72%. The healthcare sector was right behind with a gain of 1.71%.
The energy sector fell 0.81% and the financial sector dropped 0.09% as the only two sectors to lose ground on the day.
My scans continued to produce negative results on Thursday, but the difference between the two lists was as great on Thursday. There were 45 bearish signals and 20 bullish signals.
The barometer moved up to -48 from -58.2 once these results were added in to the equation.
Out of the 65 different stocks and ETFs on the two lists last night, there was only one where I liked the direction of the signal, the chart, and the fundamentals. The only one was Box, Inc. (NYSE: BOX) and it was on the bullish list. The company’s fundamental ratings are good with an EPS rating of 73 and an SMR rating of an A.
The stock dropped recently, but it appears to have found support at the $21 area. This particular area has been a key point in the past as it served as resistance back in August of last year. After the stock broke through this level in March, it pulled back again and used the area as support before jumping up above $25. I look for another bounce off of the $21 level over the next few weeks.
Buy to open the June 20-strike calls on BOX at $2.55 or better. These options expire on June 18, 2021. I suggest a target gain of 75% and that means the stock will need to climb to $24.47. I suggest a stop at $20.50.
— Rick Pendergraft
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