Stocks soared again on Tuesday with all four indices experiencing significant gains. All four opened higher and remained in positive territory throughout the day.
The Dow led the way with a gain of 1.57% and the Nasdaq was right on its heels with a gain of 1.56%.
The S&P rallied for gain of 1.39% and the Russell moved up 1.19%.
All 10 sectors posted gains once again and this time it was the financial sector that led the way with a jump of 2.42%. That worked well with yesterday’s bullish suggestion on the SPDR S&P Bank ETF (KBE).
The industrial sector and the consumer discretionary sector tied for the second best gain at 2.12%.
There were three sectors that failed to gain over 1.0% and they were healthcare (+0.26%), consumer staples (+0.67%), and utilities (+0.82%).
My scans remained strongly skewed to the positive side with 90 bullish signals and two bearish signals.
The barometer jumped to 89.7 from 72.8 once these results were added in to the calculations.
For the fourth straight day we have a bullish trade idea. With the scans being so one-sided in the last few days, it only makes sense. Today’s trade is on Infosys Technologies (NYSE: INFY). The company was obviously on the bullish list and it has strong fundamental ratings. The EPS rating is 80 and the SMR rating is an A.
The daily chart shows how the stock has been trending higher with a trend channel forming over the last five months. The stock just hit the lower rail and turned higher. The 10-day RSI hit its lowest level since March and the stochastic indicators were in oversold territory for only the second time since last March. The stochastic indicators made a bullish crossover like they did in late October. I’m expecting a similar move this time around as to what we saw then.
Buy to open the April 16-strike calls on INFY at $2.05 or better. These options expire on April 16, 2021. I suggest a target gain of 100% and that means the stock will need to reach $20.10. The target is about a dollar above the high in January, but the upper rail will be above that level soon. I recommend a stop at $16.50.
— Rick Pendergraft
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