Stocks moved higher on Thursday and all four indices finished the day with gains. Three of the four were in positive territory while the Nasdaq spent a good portion of the day in the red, but it rallied late in the session to close with a gain of 0.13%. That was the smallest gain of the bunch.
The Russell led the way with a gain of 0.81%, the S&P 500 rallied 0.52%, and the Dow tacked on 0.38%.
Nine of the 10 main sectors moved higher with only the consumer staples sector finishing lower. The sector declined 0.33%.
The energy sector jumped 1.74% to lead the way and the utilities sector gained 1.09%. Those were the only two sectors to finish with gains over 1.0%.
My scans flipped the script last night with a positive skew, ending a five-day stretch of negative readings. There were 58 bullish signals and 39 bearish signals generated.
The barometer jumped up to -11.5 from -30.9 after these results were added in to the calculation.
There were a number of stocks and ETFs that got my attention from both lists last night, but the one I liked the best was on Kinder Morgan (NYSE: KMI). The stock was on the bullish list and it has good fundamental ratings. The EPS rating is 82 and the SMR rating is a B.
The daily chart shows the upwardly-sloped trend channel the stock has been in over the last eight months. The stock recently came close to the lower rail and has now turned higher. Looking at the rally from early February through late March, I am expecting a similar move this time around.
Buy to open the September 17-strike calls on KMI at $1.65 or better. These options expire on September 17, 2021. I suggest a target gain of 100% and that means the stock will need to reach $20.30. This target is above the recent high, but based on the rallies in November, February and March, and April to the June high, I think the target is reasonable. I suggest a stop at $17.40.
— Rick Pendergraft
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