We saw a follow through on Wednesday as the indices moved higher for a second straight day. All four opened higher and all four remained in positive territory throughout the day.
The Russell was the hands-down leader once again, this time with a gain of 1.75%. The other three indices saw similar gains— the Nasdaq rallied 0.92%, the Dow gained 0.83%, and the S&P moved up 0.82%.
The sector results didn’t show the same consensus positive results we saw on Tuesday as only eight sectors moved higher on the day. The energy sector led the way once again with a gain of 3.51%. The financial sector gained 1.7% as the second best performer and the materials sector (1.10%) made it three with gains over 1.0%.
On the down side, the two sectors that lost ground were utilities (-1.1%) and consumer staples (-0.25%).
My scans remained strongly skewed to the positive side last night with 112 bullish signals and six bearish signals.
The barometer jumped to a reading of 105.4 with the second straight big positive result. This is the highest reading for the indicator since November 3.
I have a fifth straight bullish trade idea for you today after another strong result for bullish signals being generated. There were several individual stocks that got my attention, but I liked the setup on the Communication Services Select Sector SPDR (NYSE: XLC) the best. As is always the case with ETFs we don’t have the fundamental indicators, but the fund did generate a bullish signal from Tickeron’s AI trend prediction tool in the last few days. The signal shows a 90% probability of an upward move in the next month.
The trend channel jumped out at me when I looked at the chart. It was so clear that I could see it before I drew it. We also see that the stochastic indicators had dropped down near oversold territory before making a bullish crossover last night. The setup looks like what we saw in May and the fund rallied 10.5% in a month and a half.
Buy to open the September 80-strike calls on XLC at $3.10 or better. These options expire on September 17, 2021. I suggest a target gain of 100% and that means the fund will need to reach $86.20. A 10% move from the recent low would put the fund above $87. I suggest a stop at $78.00.
— Rick Pendergraft
See What One Ticker... One Trade... EVERY WEEK... Can Do for YOU [sponsor]New research proves that trading one ticker every week has had the ability to produce extraordinary gains... Including a rare 2,614% in under 11 days. See this groundbreaking new discovery for yourself. SHOW ME ONE TICKER PAYOUTS