2600 Holds In Flat Session

With the Thanksgiving holiday and Black Friday now behind us, the market was kind of groggy as it got back to work on Cyber Monday. The major indices each hit new records intraday, but weren’t able to hold onto them. However, the S&P managed to stay above 2600, while the Dow broke from the pack for a slight gain in the session.

The S&P declined 0.04% and finished at 2601.4, marking its second straight close above 2600. The NASDAQ slipped 0.15% to 6878.5, but the Dow fought through the malaise and finished with a gain of 0.10% to 23,580.8.

Today’s session may have been flat, but this week could be quite eventful. The holiday shopping season has officially begun, and the market is expecting today’s Cyber Monday activity to reach new records in online shopping. The other big story, of course, is the Senate tax bill, which could be brought up for a vote later this week.

In the portfolios, Options Trader had bullish and bearish trades on Monday. Also, TAZR added a cyber security name, while Black Box Trader only had one swap in this week's adjustment. In other news, if you've been wondering how to capitalize on the cryptocurrency mania, then make sure to read this week's Zacks Confidential. Take a look at all the highlights below:

Today's Portfolio Highlights:

Options Trader: Kevin is a fan of retail right now, so he couldn’t resist the bullish head and shoulders “failure” pattern breakout in Dollar General (DG). The discount retailer is a Zacks Rank #2 (Buy) company that’s part of a space in the top 29% of the Zacks Industry Rank. The fundamentals and technicals are all pointing to a price target of $110, prompting the editor to add a few bull call spreads in DG by buying to open three May 90.00 Calls AND selling to open three May 95.00 Calls. If the stock closes at or above $95 by mid-May, then these spreads will bring a 203% gain. But that’s not all...

Just because Kevin is bullish on the market, doesn’t mean he can’t make money on a bearish position. Case in point, Essex Property Trust (NYSE:ESS) is a REIT with a big head and shoulders reversal pattern, which the editor takes as a signal of a larger downside move to come. He added a bear put spread in ESS by buying to open an April 250.00 Put AND selling to open an April 240.00 Put. If the stock closes at or below $240 by its mid-April expiration, then the portfolio will make 138%. Read the complete commentary for more specifics on these moves.

TAZR Trader: Cyber security is big business these days, as was exemplified by CyberArk Software’s (CYBR) impressive beat-and-raise quarter earlier this month. Kevin Cook thinks this Zacks Rank #2 (Buy) provider of digital security solutions is poised to close the gap up to $50 amid its surge and consolidation above the 200-day moving average. The editor believes CYBR is set for another year of 19% topline growth in 2018, yet it is still trading under 40X forward EPS. Kevin likes what he sees on the fundamental and technical side with this one, so he added CYBR with a 7.5% allocation. Read the full write-up for more.

Black Box Trader: Once again, there was only one swap for this week’s adjustment. The portfolio sold Meritor (MTOR) and replaced it by adding Sprouts Farmers Market (SFM). Read the Black Box Trader’s Guide to learn more about this computer-driven service designed to take the emotion out of investing.

Zacks Confidential: Whether you’ve been a Bitcoin believer or not, investors can no longer afford to ignore the cryptocurrency craze. You can count Kevin among those who never thought much about Bitcoin, so he was happy to have Jeremy Mullin shed a light on the space in this week’s Zacks Confidential. Get answers to some of the most common questions about cryptocurrencies and a few stocks that could benefit from this rapidly-growing industry by clicking: Trading Bitcoin Mania.

All the Best,
Jim Giaquinto

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