This quarter's Zacks Top 10 Stocks update was just released. Learn how the portfolio performed and get new insights on each of the ten positions. And don't forget to take a look at the video!
After several attempts over the past few weeks, the S&P finally closed above 2400 on Monday. It wasn’t an epic rally that broke through the doors of resistance after a solid earnings season. Instead, true to the market’s form of late, it moved higher by only 0.48% in the session to finish above the mark by a little more than two points. It was a slow but steady climb higher.
Specifically, the S&P finished at a new record of 2402.3, while the NASDAQ made history again with an advance of 0.46% to 6149.7. The Dow was up as well, but its 0.41% increase didn’t break new ground at 20,981.9. A big reason for today’s move was oil, which advanced more than 2% to its highest level in nearly a month after an agreement between Saudi Arabia and Russia to keep production cuts in place until at least March 2018. Technology stocks also got a boost from this weekend’s global cyber-attack.
The editors are now wondering how much further the market can go while we wait for Washington to act on tax reform. Jeremy stated in Zacks Counterstrike that 2430 is not out of the question, while Steve mentioned 2450 (or maybe even a little more) in Reitmeister Trading Alert. And in Momentum Trader, Dave suggests two ways to determine which way the next leg goes.
You can get started on the MT commentary in the highlights section below. While you’re there, check out new additions to TAZR, Insider Trader and Black Box Trader.
Today's Portfolio Highlights:
TAZR Trader: The awesome earnings story of Applied Optoelectronics (AAOI) was largely missed by the market…but not by our editors! Today, Kevin joined Value Investor and Zacks Counterstrike in picking up this $1.25 billion advanced optical devices company. AAOI is expected to grow earnings by 269% this year. And with some of the biggest names in data centers as customers, the editor is feeling pretty good about subsequent years as well. He started a position today with a 7% allocation and would buy more under $60.
The portfolio also doubled its allocation in Lam Research (NASDAQ:LRCX), as chip equipment makers continue to be “en fuego”. The technical setup is telling Kevin that LRCX is “waiting to go higher”, so he wasted no time in bringing this position’s allocation up to 8%. Read the full write-up for more on these Zacks Rank #1 tech “beasts”.
Insider Trader: Only ONE insider has bought shares of Hawaiian Holdings (HA) of late, which is usually not enough for Tracey to pull the trigger. But the editor made an exception, since the last time this director bought shares was at the very bottom of the Great Recession. It was a gutsy move when HA was only at $3.56, but it paid off. Now he’s buying at more than $53. Why? Tracey thinks that he sees big upside on the way again, which is underscored by HA’s solid start to the year. Tracey added HA on Monday with a 10% allocation. Learn a lot more about this new addition in the full write-up, and be ready for another buy this week.
Zacks Confidential: Few spaces provide as much explosive upside potential as healthcare. It’s no wonder our brand new Healthcare Innovators portfolio was one of our most successful product launches in years. In this week’s Zacks Confidential, Steve has asked the portfolio’s editor Kevin Cook to show you how to find the best, most profitable healthcare areas. Read his detailed article and get four recommendations by clicking: 4 Healthcare Megatrends for Investors.
Black Box Trader: The portfolio only swapped out two positions this week. The stocks sold from the service were:
• Fiat Chrysler (FCAU) and
• Live Nation Entertainment (LYV)
The two new additions that replaced these names are:
• Aramark Holdings (ARMK)
• Cigna Corp (NYSE:CI)
Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.
Momentum Trader: "Well look at you Spooz, at all-time highs. It shouldn’t come as too much of a surprise that the S&P 500 finally made its way back to all-time highs. It’s been flirting with 2,400s for the last few weeks. Today’s close wasn’t exactly a runaway breakout from the 2,400 level but it’s a start.
"The question I have is, how far can we run? We’re still in a period of historically suppressed volatility. Going back to April 25th the S&P hasn’t moved more than 25 handles. I don’t mean not 25 handles in a day, I mean 25 handles during that entire period. Very little movement as is reflected in the historically low values of the VIX." -- Dave Bartosiak
Remember to take a look at the new Zacks Top 10 Stocks Update
All the Best,
Jim Giaquinto
Recommendations from Zacks' Private Portfolios:
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