Good MorningThe major indices reversed Tuesday’s gains posting massive losses across the board. The tech-heavy NASDAQ Composite shed more than 3.0% by the end of the day with heavy losses in the FAANG names. Even so, the technical picture continues to show signs of bottoming as the 3rd quarter earnings season gets underway. Today’s action failed to set new lows and the indicators reveal underlying market strength through divergence.
Divergence is an important term for technical analysts. When momentum indicators like MACD or stochastic fails to make a new high or new low along with the underlying market is very telling. In the case of new highs, a divergence is a sign of underlying weakness that can lead to pullback or correction. In the case of new lows, divergence is a sign of underlying market strength and the potential for bottoming.
Featured: The case for trading fewer setups, not more (Ad) 
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Medical | |
Finding a great dividend stock to hold in your portfolio over the long-term can be a challenge in today’s market. With many companies cutting their payouts or at risk of doing so shortly, the degree of difficulty for dividend investors has gone up thanks to the pandemic and its impact on cor... Read the Full Story |
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From Our Partners | | Oracle runs 15,000 stocks through the same filter every single day, scanning for precise setups before the opening bell - no emotion, no guesswork.
Tim Bohen, Lead Trainer at StocksToTrade, is walking through this week's flagged setups and showing exactly how the scanner works in a live training right now. | | Watch the scanner in action and join the live training now |
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Business Services | |
Factset Research Systems (NYSE:FDS) may be one of the most under-loved U.S. mid-cap stocks—and this could be a good thing. The maker of analytical software for investment professionals has some of the best growth metrics in the information services space, although you wouldn't know it by the... Read the Full Story |
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Markets | | Fast food restaurant chain The Wendy’s Company (NYSE: WEN) shares sold off with the S&P 500 index (NYSEARCA: SPY) during the pandemic plunge commencing in late February 2020. Shares were able to recover back to pre-COVID highs but formed a double-top at the $23.98 price level. Shares are c... Read the Full Story |
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From Our Partners | | Every morning before the market opens, a scanner called Oracle runs through 15,000 stocks and scores the setups — so there's already a plan in place by 6:15 a.m.
Lead Trainer Tim Bohen of StocksToTrade is walking through exactly how Oracle works and how regular traders are using it in a training running right now. | | Watch the Oracle training now and see how the scanner works |
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Medical | |
A lot of people have been following the healthcare market these days, if for no other reason than they now have a deeply personal connection to it thanks to Covid-19. But healthcare is more than one disease, as many hospitals discovered during the early days when few procedures were allowed to tak... Read the Full Story |
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Markets | |
After last quarter’s earnings report, you can’t fault investors for applying the “once you’re lucky, twice you’re good” mantra to Rite Aid (NYSE:RAD) stock. The company was clearly a pandemic winner. Drugstores were deemed to be essential businesses during the l... Read the Full Story |
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From Our Partners | | The U.S. government has taken roughly a 10% stake in Intel, negotiated a 15% cut of Nvidia and AMD chip sales to China, and reportedly received a 5% ownership offer - worth around $40 billion - from the most valuable AI company on earth.
Porter Stansberry calls it the New U.S.A.I. - a state-backed arrangement where Washington and a handful of tech giants are fused at the balance sheet. A small number of companies get pulled inside. Everyone else gets frozen out, including names sitting in your index fund right now. | | Watch the documentary to see which companies are on the right side |
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Business Services | |
Steelcase Cost Reductions Drive Results
At first glance, Steelcase (NYSE:SCS) might seem like a great pandemic-stock. It’s a furniture maker, after all, and the furniture industry is booming from strong home-improvement demand. Aaron’s, Inc (NYSE:AAN) recently guided its 3rd quarter h... Read the Full Story |
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Retail/Wholesale | |
In the 1950s, Charles Wilson the chief executive officer of General Motors (NYSE:GM) at the time is famously attributed with saying “As GM goes, so goes the nation.” The implication was that GM was so big and so important – dare we say essential – that the nation’s ec... Read the Full Story |
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Auto/Tires/Trucks | |
Before 2020, SPACs, or Special Purpose Acquisition Companies, were considered to be high-risk investments due to a lack of financial history and a variety of challenges that the companies face to comply with the SEC after they start trading. However, we have seen a lot of renewed interest in SPACs... Read the Full Story |
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Transportation | | UPS Delivers eCommerce Gains
The chart of UPS (NYSE:UPS) looks like a stock about to pop. The stock has been trending in a tight range at an all-time high for weeks and the indicators are setting up nicely. Looking at the bigger picture, the fundamental story is more than bullish, and one that pro... Read the Full Story |
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Retail/Wholesale | | Walmart Has Corrected, It’s Time To Buy Some More
Shares of Walmart (NYSE:WMT) hit an all-time earlier this month driven by rising revenue, growing profits, and tailwinds from the pandemic. Since then, the stock has corrected more than 10% and offering up an attractive entry for long-term inv... Read the Full Story |
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The Early Bird Stock Of The Day Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan. | | View Today's Stock Pick |
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