Stocks were mixed on Wednesday and that was reflected by the indices. The Russell jumped 1.51% on the day and the Nasdaq rallied 0.70%.

The Dow dropped 0.36% and the S&P slipped 0.02%.

Six of the 10 main sectors fell on the day with the worst performance coming from the consumer staples sector (-0.88%). The utilities sector dropped 0.73% as the second worst performer.

The energy sector rallied 0.91% as the top performer on Wednesday and it was followed by the communication services sector with a gain of 0.78%.

Last night’s scan results were rather interesting as there were pretty high numbers generated on each side. There were 38 bullish signals and 70 bearish signals. We still see a net of -32, but it’s unusual to see high figures on both sides.

The barometer dropped to -26.2 from -15.7 once the results were added in to the calculation.

Even though there were an abundance of stocks on both lists, I didn’t like the trade setup for any of them. There weren’t any where it was a bullish signal, the fundamentals were good, the chart looked good, and the options made sense. There also weren’t any showing the opposite characteristics. So I went outside my scan results and found a stock that I like and has good fundamentals. Fiserv (Nasdaq: FISV) has been on my radar for a while and it has solid ratings. The EPS rating is 92 and the SMR rating is a B.

The thing that got my attention last night was that the 10-day moving average just made a bullish crossover of the 50-day. We see the same thing happened in mid-February and then the stock rallied all the way up above $126. I’m looking for a similar outcome over the next five to six weeks and think the $125 range is easily within reach.

Buy to open the September 110-strike calls on FISV at $6.40 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 $123.40. The target is below the high in March and the high in April. I suggest a stop at $106.00.

— Rick Pendergraft

NEW THIS WEEK: Huge Energy Discovery In Utah [sponsor]
The Department of Energy say it could power America for millions of years. And both grizzled oilmen and clean energy supporters love it: Energy Secretary Chris Wright called it "an awesome resource," while Warren Buffett, Jeff Bezos, Mark Zuckerberg, and Bill Gates are all directly invested. Here's the name of the company at the heart of it all.