Thursday started on a positive note with three of the four indices opening higher and then continuing to rally throughout the day. The Russell opened in the red, but it rallied as well and would finish with a gain of 0.64%.
The Nasdaq led the way with a gain of 1.77% and it was followed by the S&P with a move of 1.06%. The Dow opened near breakeven and failed to rally as much as the other indices, but it still notched a gain of 0.55%.
Nine of the 10 sectors moved higher on Thursday with the tech sector gaining 1.88% to lead the way. The communication services sector was just behind tech with a jump of 1.73%.
The energy sector was the lone sector to lose ground on the day and it only fell 0.12%, but that is the third straight day where the sector has performed the worst. The financial sector gained 0.19% and that was the second worst performance.
My scans remained negatively skewed last night with 28 bearish signals and eight bullish signals.
The barometer continued to fall once these results were added in to the equation, falling to -22.9 from -2.4.
After a couple of bearish trade ideas in a row, I have a bullish one for you today. Weyerhaeuser (NYSE: WY) appeared on the bullish list and it has good fundamental indicators. The EPS rating is a 78 and the SMR rating is an A.
We see on the daily chart how the stock has been trending higher since late October and a trend channel has formed that marks the various swings within the overall upward trend. The stock just hit the lower rail of the channel and looks like it is ready for its next leg higher.
Buy to open the July 35-strike calls on WY at $3.10 or better. These options expire on July 16, 2021. I suggest a target gain of 100% and that means the stock will need to reach $41.20. The stock peaked at $41.68 earlier this month, so it won’t have to break to a new high to hit our target. I suggest a stop at $35.25.
— Rick Pendergraft
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