Friday was mostly a positive day for stocks with three of the four main indices moving higher. All four opened higher, but the Nasdaq dropped in to negative territory during the morning session and then waffled back and forth from positive territory to negative territory throughout the day. It would finish with a loss of 0.06%.
The Russell traded in positive territory all day, but a steep selloff at the end of the day cut the gain to only 0.03%. The Dow led the way with a gain of 0.69% and the S&P moved up 0.33%.
Nine of the 10 main sectors moved higher on Friday with the tech sector being the lone one to close in the red. The sector fell 0.12%. The materials sector only eked out a gain of 0.01% and it was the second worst performer.
The financial sector was the top performer for a second straight day and this time it was a gain of 1.21%. The utilities sector gained 1.07% as the second best performer. Those were the only two sectors with gains over 1.0%.
The scans turned more negative on Friday with 43 bearish signals and 15 bullish signals.
The barometer dropped rather sharply once those results were added in to the equation, falling to 12.1 from 49.7.
After five straight bullish trade ideas, today’s idea is a bearish one and it is on RealReal Inc. (Nasdaq: REAL). The stock appeared on the bearish list and the company’s fundamental ratings aren’t very good. The EPS rating is only an 8 and the SMR rating is an E. You can’t get much worse than that.
What we see on the chart is a downward trend since late February with that high and the high from April creating a trend line. The stock moved slightly above the trend line last week, but it fell sharply on Friday and closed significantly below it. The pattern on Friday was also a bearish engulfing pattern which suggests a change in the trend over the coming days.
Buy to open the August 22.50-strike puts on REAL at $3.50 or better. These options expire on August 20, 2021. I suggest a target gain of 100% and that means the stock will need to drop to $15.50. The stock dropped all the way down to $13.00 in May, so it won’t have to break to a new low to hit our target. I suggest a stop at $23.25.
— Rick Pendergraft
Collect up to 5 dividend checks per week [sponsor]Hi, I'm Tim Plaehn, and I just did the math in my own, real-money portfolio. I'll be collecting 70 dividend checks this quarter. That's nearly 5 per week on average. Automatically… no trading, no options, no work. You don't need a lot of money. You can be retired or near retirement... Either way, I'll show you my #1 plan to quickly collect dividends like clockwork from high-quality, cash-flowing business. Click here to learn how to collect up to 5 dividends a week.