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Wreck Cleared; New Highs Resume

The so-called "tech wreck" ended after only two days, clearing the way for the major indices to get back to logging new highs. The S&P was up 0.45% to 2440.4 and the Dow climbed 0.44% to 21328.5...both hitting fresh records. Even the Russell 2000 made some history with an advance of 0.48% to 1426. However, the NASDAQ (which slipped by more than 2% over the past 2 days) has further to climb than its counterparts...but it did stop the bleeding today with an increase of 0.73% to 6220.4.

With that out of the way, we set the stage for the Fed. Their next announcement comes tomorrow afternoon, and there's very little suspense this time. The conventional wisdom overwhelmingly believes that we're getting another quarter point rate hike. "So, what happens if they don't raise rates?" asked Steve in RTA . "Yes, that would be the more shocking outcome at this stage of the game. And likely it would be met with a stock sell off."

Portfolio activity cooled off a bit from yesterday, but we still had a double-digit winner from Reitmeister Trading Alert . Also, the Short List swapped out three names in this week's adjustment. Check these moves out below along with some analysis from the editors.

Today's Portfolio Highlights:

Reitmeister Trading Alert: Penn Gaming (PENN) has been soaring of late, but Steve doesn't think it can get much past $22 before its earnings report in late July. (The stock finished today at $21.90.) So the editor decided to take some of the position off the table and bank a return of 16.5%. Ultimately, PENN should reach the mid-to-upper $20s if it can put together another impressive beat, which is why the portfolio is holding onto a 6.7% allocation in the name.

Zacks Short List: The portfolio swapped out three positions in this week's adjustment. The stocks that were short-covered today included:

• National Oilwell (NOV, +1.9%)

• Inphi Corp. (IPHI) and

• Vertex Pharma (VRTX)

The new buys that replaced these names are:

• EOG Resources (EOG)

• ConocoPhillips (COP) and

• Apache Corp. (APA)

Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Surprise Trader:"It looked like it was going to be another rough day for tech, as early gains evaporated in the first hour of trading. However, there was some 'bargain' buying and most recovered quite nicely as the day went on, holding the line for the rest of the day. Apple was briefly red for the day before finishing with a gain in the 0.8% range, while Nvidia was down as much as 2.7% before finishing the session higher by about one percent.

"To me, this signals once again that fears over a broad tech collapse are a bit overblown. We saw a number of buyers step in today, and I think that bodes well for the future too. There are plenty of growth opportunities left in tech, and I do not believe investors should give up on the segment just yet." -- Eric Dutram

Zacks Counterstrike:"Once again, the selloff was short lived. The tech smack down is already over after only two days as stocks like Amazon, Tesla and Nvidia rallied. While the Nasdaq didn't rally to pre-selloff levels, the Dow, S&P, and Russell 200 all set all-time highs. This amazing market strength looks to continue through the week.

"The Fed is due up tomorrow so I expect little movement and low volumes before the announcement. There is basically a 100% chance at a rate hike, but let's call it 95%. The language after is what will be important. Will they comment on market excess, inflation concerns, and balance sheet? Will they talk about another hike? Those four element will really be the focus for traders. Two bearish scenarios may develop form talk about market excess and the balance sheet. However, if language remains the same market should grind higher." -- Jeremy Mullin

All the Best,

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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