Trading Places

The major indices stuck pretty close to home again on Thursday with several sectors changing places from previous sessions. "Overall though, it was a bit of a bounce back session for some of the recently troubled markets - such as energy and yield-sensitive areas - while some of the recent leaders - such as industrials and materials - took a step back instead," said Eric in Surprise Trader .

The Dow has now hit a record for 10 straight sessions by climbing 0.17% today to 20,810.3. The S&P overcame some weakness earlier in the day to inch over breakeven by 0.04% to 2363.8. The NASDAQ, however, was pretty much down all day and finished in the loss column by 0.43% to 5835.5. "Yet another confusing consolidation day with alternating swatches of green and red painted across the market sectors," said Steve in RTA . "Consolidation periods are where today's winners are often tomorrow's losers…and vice versa."

RTA was most active in the portfolios on Thursday as it sold three names (one for a double digit return) and then moved into some fresh ideas with three new positions. Read all about the changes below, along with some other activity from the portfolios.

Today's Portfolio Highlights:

Reitmeister Trading Alert: Steve had been talking about taking profits for the past few days due to some "creeping negative items" in the market…and today he followed through. The biggest winner of today's sells was Commscope (COMM), which the editor sold because it guided lower for Q1 2017. However, it still made 15.9% for the portfolio. He also sold Boyd Gaming (BYD) and Francesca's (FRAN) for profits of 9.4% and 7.3%, respectively. The portfolio also rotated into fresh ideas today with three additions...

The new positions are all Zacks Rank buys with VGM Scores of A. Avery Dennison (AVY) is part of the highly-ranked business services group and has shown a "steady as she goes merit" that Steve thought deserved a 6.5% allocation in the portfolio. The expanding world economy ultimately means big things for First Data (FDC), which recently announced a 13% surprise. It was added with a 6.8% allocation. Finally, Lear Corp. (LEA) is in the highly-ranked auto group and a way to add an industrial company that hasn't run up too much in the Trump Trade. And it hasn't missed earnings in 5 years! Steve added it with a 6.4% allocation. Get more specifics on all of today's moves in the complete commentary.

Stocks Under $10: Kemet (KEM) will officially be acquiring NEC TOKIN from NEC Corp. The deal is expected to close on April 10. Investors apparently love this combination, as shares of KEM soared by nearly 23% on Thursday. Stocks Under $10 has owned this leader in the electronic components industry since early December, so it had the top mover of all the portfolios today by a wide margin. It is up 70.5% since being added and is also now the top mover over the past 30 days. By the way, the portfolio also had the second best mover of the session, as Ultra Clean Holdings (UCTT) jumped more than 11% on strong quarterly results. The company is now up more than 63% since it was bought in early November. Both of these stocks are beneficiaries of the hot semiconductor space.

Zacks Counterstrike:"Saw a headline today that made me think about the next potential catalyst for a sell off. French presidential candidate Marine Le Pen said: "It's time to end the European Union". Le Pen is like Trump in a lot of ways in that she will shake things up. If the end of the EU is her goal, markets would certainly weaken on that uncertainty.

"I think this is why we are seeing a lot of weakness overnight. Europe political risk is weighing on traders as they continue to look for the top. Meanwhile, when we wake up here and see the markets down, the thought is just to buy it up….because we always go green in the end!

"When markets start closing on their lows and gapping down, this would be a classic signal the bull run is taking a break." -- Jeremy Mullin

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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