Waiting For Irma

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Hurricane Irma is just too daunting for the market to process right now, especially since we’re still dealing with the aftermath of Hurricane Harvey. And that’s not the only cause of concern. North Korea remains a problem on the geopolitical front, while skepticism of passing tax reform takes a toll domestically.

Given all these factors, it’s not a surprise that volume levels were modest on Thursday and that the major indices had trouble finding direction. The S&P was down 0.02% to 2465.1, while the Dow was off 0.10% to 21,784.8. However, the NASDAQ managed a 0.07% gain to 6397.9.

“(T)he markets (even though they were mostly down a bit today) are holding steady in the face of this storm,” said Kevin Matras in Options Trader. “In fact, I have to say, the resiliency of the market has been most impressive."

While the market waits for Irma, ETF Investor bought a new fund from the convertible bond space. Also, Stocks Under $10 added its second position of the week. The highlights section below outlines these moves, and also includes some market analysis from Counterstrike:

Today's Portfolio Highlights:

ETF Investor: Eric thinks that the convertible bond space is an intriguing idea in the current market, since it is safer than stocks yet still responds to stock moves. In other words, it will participate in any market rallies but be protected from pullbacks more than equities. Therefore, the editor sold the underperforming QABA position today and bought SPDR Barclays Convertible Securities ETF (NYSE:CWB). The fund has a solid return year to date and is tilted toward the tech and consumer markets. Learn more about this new addition in the complete commentary.

Stocks Under $10: The portfolio picked up Bristow Group (BRS) today for its second buy of the week, as it works to get back to 20 positions in all. The company has a fleet of helicopters that service the energy sector. It has reported some big beats in three out of the last four quarters, including the most recent. BRS is based in Houston, but its business has not been hurt by Hurricane Harvey and may have actually received a boost from the storm. The editor also sold CRBP today. Read the full write-up for more on all of today’s moves.

Counterstrike: "Stocks chopped around on low volume once again as the S&P 500 saw its second inside day in a row. Markets seem to be waiting to see what kind of damage Irma will do to Florida before committing either way. In addition, the weekend brings about a threat of another North Korea missile launch, which means most traders won’t want to be long by the close on Friday.

"Looking forward to tomorrow I see much of the same, a lot of choppy trading that will be dependent on news. Investors just want to get past this weekend, once we do the market will likely pick a direction." -- Jeremy Mullin

All the Best,
Jim Giaquinto

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