Stocks moved higher on Monday and all four of the indices experienced solid gains. The Nasdaq led the way with a gain of 0.75% and it was followed by the S&P which moved up 0.50%. The Dow notched a gain of 0.36% while the Russell lagged the others but still managed to move up by 0.19%.
Eight of the 1o sectors moved higher on the day with the tech sector leading the way with a gain of 1.05%. The healthcare sector finished with the second best move at 0.90% and the materials sector moved up 0.85%
[hana-code-insert name=’adsense-article’ /]As for the two sectors that lost ground, the energy sector dropped 0.80% as oil fell 2.83% on the day.The financial sector also finished in the red with a loss of 0.21%.
My scans turned in a fourth straight positive result on Monday with 44 names on the bullish list and 17 on the bearish side.
The barometer moved up to 21.4 from 12.4 once these results were added in to the equation.
With the bulk of signals being on the bullish side of the ledger, today’s trade idea is a bullish one and the subject company is Restaurant Brands International (NYSE: QSR).
The company scores an 84 on the EPS rating scale and it gets an A on the SMR rating system.
The daily chart shows an interesting trend line that touches the pre-gap high from January and it catches the lows from March, May/June, and the low from Friday. We also see that the daily overbought/oversold indicators reached oversold territory and have since moved higher. The stochastic readings made a bullish crossover last night.
Buy to open the November 70-strike calls on QSR at $3.50 or better. These options expire on November 15. In order for these options to double the stock will need to reach $77.00. That is below the recent high and only 8.24% from the current price. I suggest a target gain of 100% with a stop at $69.75.
— Rick Pendergraft
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