With a new stimulus package getting approved through the Senate, investors felt a little more optimistic and sent stocks higher on Wednesday. It also helped that oil prices rebounded.
The Nasdaq enjoyed the biggest jump with a gain of 2.81%. The S&P gained 2.29% and was the only other index to gain over 2.0%. The Dow just missed that threshold with a move of 1.99% and the Russell lagged the others with a move of 1.39%.
All 10 main sectors moved up on the day and two gained over 3.0%.The tech sector jumped 3.85% and the energy sector tacked on 3.56%.
The consumer staples sector only gained 0.96% and it was the only sector that failed to gain at least 1.0%.
The industrial sector added 1.05% and the financial sector rallied 1.08% as the second and third smallest gains.
My scans remained negative with two bullish signals and 29 bearish signals. That is one of the least negative results of the last 10 days.
The barometer inched up a little on Wednesday with a final reading of -36.6. The reading on Tuesday was -39.6.
I finally have a bullish trade idea for today. I didn’t get a bullish signal on the stock last night, but rather it was two nights ago. I mentioned on Tuesday that were two stocks on the bullish list that I liked, but both stocks were announcing earnings that morning. Synchrony Financial (NYSE: SYF) was one of those stocks that appeared on the bullish list and the EPS rating was an 81 and the SMR rating was an A.
What we see on the chart is a quick upward trend forming over the last few weeks and a trend line forming to connect the lows. The stock looks poised to move back up to the $20 level in the coming weeks, but may see some resistance at that point. I also took note that the stochastic readings have been reaching higher lows with each little dip and that is a positive sign for the stock.
Buy to open the June 15-strike calls on SYF at $2.65 or better. These options expire on June 19. I suggest a target gain of 75% on this trade. To reach that percentage gain the stock will need to hit $19.65. I suggest a stop at $14.50.
— 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.