Dow's Winning Streak Ends At Five Days

Well, Congressional leaders say they have a tax plan all worked out and President Trump can’t wait to sign it...but it still needs to pass first! The market got a bit rattled on Thursday when Senator Marco Rubio said he would vote “no” on the plan unless it expands the child tax credit. The odds are still pretty good that something will get passed soon, but such uncertainties can just gnaw at stocks throughout the course of a session. That’s what happened today and, unfortunately, it meant the end to an impressive streak for one of the major indices.

The Dow slipped by 0.31% to 24,508.7, ending a five-day winning streak that also included four straight all-time highs. The S&P declined 0.41% to 2652 and the NASDAQ was off 0.28% to 6,856.5. The tax uncertainty spoiled some good economic data in the session, especially a gain of 0.8% in November retail sales that trounced expectations of only 0.25%.

“Any pullbacks will likely be a buying opportunity, which is why we had a new buy today,” said Jeremy in Counterstrike.

The buy turned out to be one of the biggest energy companies in the world, which the editor added in anticipation of higher oil prices. He also sold a name for a double-digit profit. That was all the activity in the portfolios today. However, the highlights section below has more than just the Counterstrike moves; it also includes a couple excerpts from other services. Give it a look:

Today's Portfolio Highlights:

Counterstrike: Now that Twitter (TWTR) has finally found a way to monetize its platform, shares of the social media staple have taken out the portfolio’s $23 target. The move prompted Jeremy to sell half the position for a 12.3% advance in a little over a month. The editor stresses that there’s nothing wrong with the stock (which is why he’s hanging onto half); he’s just being disciplined and taking profits.

Meanwhile, Jeremy wants to be in the energy space in early 2018, as he expects crude to retake $60 and then some. For now though, a leader like ConocoPhillips (NYSE:COP) is a bargain, so it was added to the portfolio with a 12% allocation. The editor likes its risk/reward and its longer-term outlook. COP beat by 77% in its most recent report and is a good candidate for a long stay in Counterstrike. Read the full write-up for more specifics on these moves.

Insider Trader: "Investors turned pessimistic on Wall Street today on renewed fears that the tax reform plan may not pass after all.

"Basically, until this is signed, no one really believes it will happen.

"Additionally, much of the excitement surrounding it may now be priced in. Wall Street loves to anticipate things. Stocks will often run up into an event, such as a Fed meeting where they may cut rates or do QE, and then see little movement after the event actually occurs.

"Much of this year's rally was likely pricing in the tax reform plan so it could be that the bulls will actually be "ho-hum" about it once it actually passes (if it does.)" -- Tracey Ryniec

Large-Cap Trader: "Retail sales in the world’s most important economy rose +0.8% last month from October, the Commerce Department said on Thursday. The figure is ahead of the +0.3% increase consensus was expecting and comes on top of a +0.5% advance recorded in October.

"So-called control retail sales, which exclude volatile items like autos, petrol sales and other products like building materials, also rose +0.8% from October – topping analysts’ estimates for an +0.4% rise.

"The data offer further evidence of strength in consumer spending and give Fed officials another thing to think about as they deliberate on the direction of interest rates for next year." -- John Blank

All the Best,
Jim Giaquinto

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