The long President's Day weekend started on a high note, as stocks were able to overcome a rough morning and finish Friday's session in the green. The Dow had the most interesting story as it came into the day with six consecutive record closes. The index spent most of its time on the loss side before a final push helped it to eke out a 0.02% advance to 20,624.1. By any measure, that is a breakeven performance…but it's also the seventh straight record close for the Dow. It was up 1.8% for the week.
The S&P didn't have as dramatic a turnaround, but it did come back from the brink and finish with a 0.17% advance to 2351.2. The NASDAQ had everything under control, spending most of the session on the positive side and ending with a 0.41% increase to its own all-time high of 5838.6. These indices were up 1.5% and 1.8%, respectively, for the week. In addition to the overall upward bias in the market right now, stocks also got an assist from the highest reading for the Leading Indicators Index since 2015.
The portfolios had more double-digit winners on Friday, as Stocks Under $10 and Game Changers got out of positions with strong returns. The latter portfolio also bought today. There were other additions for TAZR Trader and Momentum Trader . Learn all about it in the highlights section below:
Today's Portfolio Highlights:
Stocks Under $10: Brian plans on adding a new pick next week, but first he needs to make some room. The recent $75 million offering from Asure Software (ASUR) isn't sitting well with the editor, who feels it may be a problem for the position. So this was the perfect opportunity to sell this workforce management solutions company and bank a nice 31.2% return in only two months. The replacement pick comes on Tuesday.
Game Changers: Shares of Box Inc. (BOX) are close to their highs, but Brian never wanted to hold this company past its earnings date (which is March 1). Since the editor wants to stay fully invested, he set up a swap on Friday that included selling BOX and securing a nice 22.4% return.
Brian is putting everything he got from BOX into Jeld-Wen (JELD), a recent IPO that sold 25 million shares at the high end of the range ($21-$23). It opened for trading at $25.25 and has since moved to around $30. The company makes windows and doors, so it's a play on the strong housing market. The editor expects a lot of positive coverage to start next week when the "quiet period" ends. Learn more about both of these moves in the complete commentary.
TAZR Trader: Kevin has been waiting for chip equipment maker Lam Research (LRCX) to dip below $115…and today it happened. The editor jumped at the chance to take a 7% allocation in the name. LRCX had a strong fourth quarter report late last month, and several investment banks have lifted their targets to $125 given their bullishness for semis. If the stock should drop under $110, then Kevin would add more to the position. Read the complete commentary for more on this new pick, including a look at its chart.
Momentum Trader: As promised, Dave replaced yesterday's double-digit sell of SODA on Friday. The new addition is Cardiovascular Systems (CSII), a medical device company focused on treatment systems for vascular disease. The editor took advantage of a short-lived slump this morning to add a 12.5% allocation. Otherwise, CSII is in the middle of a breakout from 52-week highs. Learn more about this new addition and take a look at its chart in the complete write-up.
Surprise Trader: " I am sure I sound like a broken record at this point, but the economic data keeps coming in ahead of expectations. The leading indicators report, which looks at expectations for the economy six months from now, edged out expectations and rose to a 0.6% gain, the highest since May of last year.
Again, this continues a nice trend in the economic data and it underscores the high level of confidence that people seem to have in the future right now. Things are definitely firing on all cylinders, and given the Washington uncertainty, it is pretty impressive to see people still so upbeat. Who knows how long this optimism will last, but at least for now, things are creating a virtuous cycle that could propel us and the economy higher." -- Eric Dutram
Have a Great Weekend!
Before You Go...
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