Markets

Dow Moves Back in the Black for 2018

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A week ago today, the Dow staged a huge intraday comeback to end a four-session losing streak with a scant 5-point (+0.02%) advance. The index hasn't looked back since! From the low last Thursday, it has gained about 1200 points in 6 trading sessions.

In fact, the whole market has calmed down recently from all those concerns that led to a cold shoulder for this strong earnings season. Despite the solid reports, the market was too stressed out by rising rates and the threat of a trade war, just to name a couple worries. But it looks like the "goldilocks" jobs report last Friday may have gone a long way in helping the market to relax and take a breath.

On Thursday, the Dow registered its sixth straight day in the green with a rise of 0.80% to 24,739.5. The index has now turned positive for 2018. Another strong day for tech gave the NASDAQ its fifth day on positive ground with an advance of 0.89% to 7405. The best performance, though, was the S&P's increase of 0.94% to 2723.1, marking its fourth up day in the past 6.

"The bulls have the pedal to the floor and are pushing prices higher after recent fears have faded. The February through April weakness can now be viewed as a dip, rather than a start of a major sell off," said Jeremy in Counterstrike.

Throughout the 3-month correction, Jeremy had been one of the most cautious editors. But now he thinks it's time to get long again and so he made a new addition on Thursday. Meanwhile, Brian Bolan has been getting more aggressive in his portfolios for weeks now, which continued today with a buy in Technology Innovators and a couple double-digit sells in Stocks Under $10 . Finally, TAZR Trader got a chance to buy more exposure to a profitable yet oversold biotech. Learn more about all these moves below:

Today's Portfolio Highlights:

Counterstrike: Now that the market has broken through the Fibonacci short in the S&P at 2710, Jeremy says it's finally time to get long! On Thursday, the portfolio bought a 12% position in Smart Global (SGH), a Zacks Rank #2 (Buy) specialty memory solutions company. Shares sold off despite a strong quarterly report in late March, which included a positive surprise of 30% and a raised guidance. But the stock's 50-day ultimately held, and the improving market suggests a return to all-time highs. Read the full write up for more on SGH, along with other moves in the portfolio today.

Technology Innovators: The portfolio cashed in a couple double-digit winners yesterday, and today Brian Bolan replaced one of them. The editor picked up Evertec (EVTC), a Zacks Rank #1 (Strong Buy) stock from the hot payments industry. The company recently reported a solid beat and raise quarter. Plus, as a company based in Puerto Rico, it has a part to play in that island's recovery from Hurricane Maria. Learn more about this new addition in the complete commentary.

TAZR Trader: Recent addition Exelixis (EXEL) just got some bad news on a Phase III study for a colorectal cancer drug. While this could threaten even more technical weakness for this already oversold stock, Wall Street analysts see this event as a mere flesh wound since the drug was barely in their current growth models. And Kevin sees it as a buying opportunity for a profitable biotech growing at 50%+. Therefore, he added 7% to the portfolio's allocation just two days after the initial purchase on a bet that the worst is priced-in and institutional buyers will emerge once the impact is understood. Read the full write-up for more specifics.

Stocks Under $10: As part of his plan to get more aggressive in this improving market, Brian Bolan decided it was time to take profits on three materials names. The biggest winner was Cleveland Cliffs (CLF), which brought a gain of approximately 15% in less than 5 months. Intrepid Potash (IPI) was right behind with a more than 12% return in less than 9 months, while Israel Chemicals (ICL) participated with a more than 1% advance in just under 2 months. In addition to the profits, the portfolio now has room for more buys in the coming days.

Options Trader:"The markets rallied again today with most of the major indexes up nearly 1%. And the Dow has been up for 6 straight days.

"The markets are on pace for an excellent week.

"As I've mentioned before, it looks like the 3-month long correction might finally be behind us.

"With the Dow's gains today, all of the majors are up for the year. And they are getting within striking distance of their all-time highs set earlier this year. In fact, the Russell 2000 Small-Cap Index is less than 1% away from making new all-time highs.

"It's been a volatile beginning of the year, but the market looks like it's getting fun again." -- Kevin Matras

Have a Good Evening,

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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