Stocks Already Have The Holiday Spirit

The major indices finished Tuesday’s session back at all-time highs. Plus, the S&P broke through 2600 for the first time before finishing less than a point away from that milestone.

Technology led the way and boosted the NASDAQ by 1.06% to 6862.5. The S&P could just lean forward tomorrow and close over 2600 after today’s gain of 0.65% to 2599, while the Dow was up 0.69% to 23,590.8. Earnings season is almost over and has been mostly positive; economic data is light this week and has been overall pretty solid; and there’s unlikely to be any big news on the tax front while Congress is out of session. Given this boring week, why not move back to all-time highs?

It was a busy day for the portfolios as several editors wanted to get a trade in before the holiday weekend. Surprise Trader added twice, while Dave also banked a double-digit winner and made a fresh buy in Momentum Trader. Stocks Under $10 added a stock that just announced its 10th straight positive earnings surprise, while Insider Trader is still finding candidates to buy amid heightened insider activity. Finally, Short List swapped out three names this week. Give it all a look below:

Today's Portfolio Highlights:

Surprise Trader: Earnings season may be nearing an end, but there are still enough upcoming reports for Dave to make a couple moves. On Tuesday, he added Marvell Technology Group (MRVL), an integrated circuits developer that jumped by more than 7.8% today. The editor thinks “the best is yet to come” for this name, so he added it with a 12.5% allocation ahead of its report on November 28th.

Contrary to popular belief, not all retailers are in trouble. Foot Locker (NYSE:FL) proved that with its recent quarterly report, which prompted the editor to take a chance on Zumiez (ZUMZ). He thinks this specialty retailer has found “a nice little niche” and really likes its positive Earnings ESP for next week’s report. ZUMZ was added with a 12.5% allocation as well, but Dave warns that this is a more “adventurous” pick with big risk/reward possibilities. Read the full write-up for more on today’s moves.

Stocks Under $10: Shares of A10 Networks (ATEN) jumped by more than 6.5% today to $8, but Brian Bolan thinks this stock could test $9 by the end of the year. The company announced a solid quarterly report late last month, which included its 10th straight positive surprise. It also beat on the top line and announced a strong guidance. Earnings estimates for this year improved to a profit of 2 cents from a loss of 8 cents over the past 90 days, while next year has also seen a gigantic swing in the right direction. The editor thinks ATEN is rolling back to new highs and then some, so he picked it up for the portfolio on Tuesday. Get his full analysis in the complete write-up.

Insider Trader: The portfolio is now fully invested heading into the homestretch of 2017. On Tuesday, Tracey put the remaining cash into specialty chemicals company Versum Materials (VSM). This stock is outpacing its industry because it specializes in products for semiconductor applications, which has been one of the hottest areas this year. Shares are up 37% year to date, but that didn’t keep two directors from buying on Nov. 16 during a small selloff. The editor considers it a very bullish signal when insiders buy at or near highs. Read the complete commentary for more.

Momentum Trader: It took a while for Dave to get comfortable buying oil stocks again, but he finally picked up the Columbian petroleum company Ecopetrol (EC) late last month. The stock has performed well. However, the editor doesn’t like how it’s just been hovering for a while. Therefore, he sold EC on Tuesday and banked a 12.5% gain in less than a month.

Meanwhile, the editor also bought Mastercraft boats maker MCBC Holdings (MCFT) with a 12.5% allocation. Yep, it’s starting to get cold outside, but Dave bought a boat company anyway. But don’t forget that he once doubled up on a ski resort stock at summertime. Read more about today’s moves and be ready for another buy soon.

Zacks Short List: The portfolio swapped out three names this week. The short-covered stocks that left the portfolio were:

• Akorn Inc. (AKRX)
• Yandex (YNDX)
• Molina Healthcare (MOH)

The new buys that replaced these names are:

• Liberty Global (NASDAQ:LBTYA)
• IAC/InterActive (IAC)
• PDC Energy (PDCE)

Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Until Tomorrow,
Jim Giaquinto

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