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Dow Enters Another Week in the green

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Though there was a bit of a fade in the final hours of the session, the major indices still finished Monday with positive performances. The market is coming off a strong week that registered gains of more than 2% as it finally began to look past worries that permeated through the three-month correction. But there's one index that has really been showing off of late.

The Dow has now gained for an eighth straight session with today's advance of 0.27% (or about 68 points) to 24,899.4. It all got started back on Thursday May 3rd, when the index snapped a four-session losing streak with a slight gain after a big intraday comeback. Today, the streak entered its third week. In that time, it has added almost 1000 points and turned green for the year.

Meanwhile, the NASDAQ rose 0.11% on Monday to 7411.3 and the S&P was up 0.09% to 2730.1. The Russell 2000 was down 0.40% to 1600.3. All of the indices had a strong morning but trailed off as the day progressed.

"The market kicked off the week on strong footing as the major market averages all gapped up at the onset of trading. Late into the afternoon, some weakness showed up, putting the major market averages under pressure," said Dave Bartosiak, editor of Surprise Trader , Momentum Trader and Blockchain Innovators . "This week retailers will come into focus with earnings due out from Home Depot, Walmart, JC Penny and Macy's."

One of the market's biggest worries of late are fears of a trade war with China. Those fears eased a bit today on an odd tweet from President Trump that mentioned working with President Xi to help out the beleaguered Chinese phone company ZTE. The tweet comes ahead of another round of trade talks between the two countries.

In the portfolios, Home Run Investor added a pollution control company, while Counterstrike picked up a specialty vehicles manufacturer that's being impacted by high frequency traders (HFTs). Also, Black Box Trader swapped out four names. Learn about all these moves and more in the highlights section below:

Today's Portfolio Highlights:

Home Run Investor: Nobody wants to drink dirty water or breathe dirty air, so a pollution control company like Tetra Tech (TTEK) has a lot of potential for growth. Brian Bolan really appreciated its most recent quarterly report, which included positive surprises for earnings and revenue along with a raised guidance for this quarter and this year. Rising earnings estimates made TTEK a Zacks Rank #2 (Buy). The editor thought this name would be a good addition to further his goal of making the portfolio more aggressive. Read the full write-up for a lot more on TTEK, and be ready for another buy on Wednesday.

Counterstrike: Shares of Oshkosh (OSK) have slipped below their 50-day and 200-day moving averages despite a late April quarterly report that included a 42% earnings surprise. This Zacks Rank #1 (Strong Buy) manufacturer of market access equipment, specialty vehicles and truck bodies has now beaten the Zacks Consensus Estimate for 10 straight quarters. Jeremy thinks the HFTs are messing with the stock, so he decided to take a small, half position of 5% in OSK on Monday. He'll look to add if shares surpass $77.50, which would break its 50-day. Read the full write-up for a lot more.

Black Box Trader: The portfolio sold four names as part of this week's adjustment and three of them brought profits. The stocks that left the service today included:

• HD Supply (HDS, +3.9%)

• Interpublic Group (IPG, +2.5%)

• Molina Healthcare (MOH, +1.9%)

• Kohl's (KSS)

The new buys that replaced these names are:

• California Resources (CRC)

• Envision Healthcare (EVHC)

• HollyFrontier (HFC)

• Quanta Services (PWR)

Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.

Momentum Trader: Action has been choppy for Copart (CPRT) since the global leader in online vehicle auctions was added less than two months ago. Nevertheless, shares are near their 52-week highs and the company has an earnings report coming next week. Dave wants to free up some space to make a move tomorrow, so this was the perfect time to sell CPRT and take a nice gain of nearly 10%.

Zacks Confidential: Technical analysis is a great way to discover when to buy and when to sell. However, there's a crucial element that's lacking in a lot of TA. Dave Bartosiak knows how to add this missing element to your research and vastly improve your profit potential. In this week's Zacks Confidential , Kevin asked Dave to uncover this blindspot and explain how to overcome it. Read his detailed article and get 3 top picks by clicking: This One Trick Give You X-Ray Vision for the Market.

Options Trader:"The major indexes finished modestly higher today. And the Dow extended their winning streak to 8 days in a row.

"As traders grow more confident that the correction is over, the market will begin to respond more aggressively. But today's green arrows were yet another step in the right direction.

"There was not a lot of market news or economic news out today. In fact, the news programs were dominated by the opening of the US Embassy in Jerusalem.

"But there's plenty of 'old' news to send stocks higher. With a growing economy, record employment, surging corporate earnings, and robust consumer confidence, the market is poised to make up for all of the economic gains over the last three months while the market was diligently putting in a bottom to this 3-month long correction." -- Kevin Matras

Until Tomorrow,

Jim Giaquinto

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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