Friday turned out to be a pretty good day for stocks as three of the four indices opened in positive territory and then proceeded to climb throughout the day. All four of the main indices would finish higher with only the Dow failing to gain over 1.0% – it finished with a gain of 0.67%.
The Russell led the way with a gain of 1.76%, the Nasdaq jumped 1.44%, and the S&P moved up 1.09%.
Eight of the 10 sectors moved higher with the defensive sectors moving lower. The consumer staples sector dropped 0.26% and the utilities sector fell 0.13%.
The financial sector jumped 1.87% to lead all sectors on Friday. Five other sectors gained over 1.0% with the second best performance coming from the materials sector which gained 1.64%.
My scans turned in a third straight positive result on Friday with 58 bullish signals and six bearish signals.
The barometer moved in to positive territory once these results were added in to the equation. The final reading was 22.6 and that is the first positive reading since April 6.
I have a third straight bullish trade idea for you today and it’s on Amkor Technology (Nasdaq: AMKR). In addition to appearing on the bullish list Friday night, the company’s fundamental ratings are really strong. The EPS rating is a 93 and the SMR rating is an A.
We see on the chart how the stock has been trending higher for quite some time now. A trend channel connects the lows over the last few months and the stock just hit that trend line. We also see that the stochastic indicators hit oversold territory last week and it they also did that in late January and early March. Each of those times the stock jumped rather sharply in the ensuing weeks.
Buy to open the June 21-strike calls on AMKR at $3.80 or better. These options expire on June 18, 2021. I suggest a target gain of 100% and that means the stock will need to reach $28.60. That target will require the stock to hit a new high, but based on the moves in February and March, I think the target is attainable. I suggest a stop at $21.50.
— Rick Pendergraft