Markets

Trump Trade Redux

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Just when you thought the Trump Trade had run its course, the major indices put together a third straight day of all-time highs. The market is still running off of a short comment from President Trump last Thursday promising a "phenomenal" tax announcement in the next few weeks. Several editors feel that this has not been priced in yet, so stocks should have further to climb. Of course, it will soon be up to The Donald to make good on his statement and actually announce some tax and other pro-growth ideas.

But for now, the foreshadowing is enough for stocks. The week started off on a strong note with the S&P climbing 0.52% to 2328.3, while the Dow increased 0.70% to 20142.2. The NASDAQ jumped 0.52% to 5764. All were records.

The portfolios were active, including double-digit sells for Stocks Under $10 and Momentum Trader . The latter service also added today, as did Surprise Trader . Black Box Trader swapped out four names this week, and three of the sells were positive. Learn more about all of these moves and much more in the highlights section below:

Today's Portfolio Highlights:

Stocks Under $10: Earnings season is very unpredictable, so don't discount a good old-fashioned gut feeling. For example, Brian is a bit concerned that InnerWorkings (INWK) might not beat when it reports in a week. Therefore, the editor decided to protect the portfolio's gain and sell this provider of marketing execution solutions for a profit of about 40%. Brian plans to give you a "Valentine's Day present" tomorrow with a new buy to replace this sell.

Momentum Trader: It looks like the momentum is gone for Ultra Clean (UCTT). Shares were down sharply today, which was enough to convince Dave to sell the position and bank an 18.5% return. He put that money right back to work with a new addition that really knows how to move.

If you're looking for momentum, then a Ferrari will get the job done. But the editor didn't buy a car (yet); instead he picked up a 12.5% allocation in Ferrari (RACE). Shares of this Zacks Rank #1 keep moving higher and is lighting up Dave's screen. But this 'car guy' really likes the new special edition cars set for next year and the new F1 season. Go to the full write-up for a breakdown of RACE's chart.

Surprise Trader: The Hotels and Motels space is in the top 30% of the Zacks Industry Rank, but Eric had no exposure until adding a 12.5% allocation in Hyatt Hotels (H) this morning. The industry staple has an Earnings ESP of 12.5% for the quarter being reported later this week. H has beaten the Zacks Consensus Estimate by an average of 25% over the past 4 quarters, and is expected to see earnings growth of 75% this year. Read the complete commentary for more on this new addition.

Large-Cap Trader: Shares of Chemours (CC) soared by double digits on Monday after the specialty chemical manufacturer settled a chemical pollution case. It will split the settlement amount with its former parent DuPont. This was great news for LCT, which bought the stock back in November. It was the best-performing stock on Monday from all the services, and is up more than 92% since the portfolio added it. CC is also the second best performer over the past 30 days. By the way, LCT has THE best performer of the past 30 days too, as Seagate (STX) has soared nearly 30% in that time.

Black Box Trader: Three of the four stocks that were sold in this week's adjustment were positive. Today, the portfolio got out of Tailored Brands (TLRD, +4.5%), Lincoln National (LNC, +4.1%), Deutsche Bank (DB, +2.5%) and GM. The new additions that replaced these names are Fiat Chrysler (FCAU), Louisiana Pacific (LPX), Pilgrim's Pride (PPC) and TTM Tech (TTMI). Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.

Zacks Confidential: If you're not in the cloud, then you are missing out on an exciting, mega billion dollar business…and one of the most lucrative investment opportunities. But don't worry, Zacks Confidential has you covered. This week, Steve has asked Neena Mishra to explain this transformative technology and its immense growth potential. Learn all about the benefits of cloud computing and get a couple recommendations by clicking: Profit from the Cloud Computer Boom.

Have a Good Evening,

Jim Giaquinto

Before You Go...

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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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