Stocks have a little bit of momentum now after posting their second consecutive session with gains of more than 1%. But will it last? Now that volatility has reemerged with a vengeance, it's going to take some time for investors to truly feel comfortable again. The major indices are still well off their recent highs and there’s no guarantee that we’ve seen the worst of this pullback.
Nevertheless, it’s always fun to see the Dow jump by 1.7%. The index is now at 24,601.3, which is off the day’s highs but marks a welcomed two-day advance of around 3%. The NASDAQ was up 1.56% today to 6982 and the S&P rose 1.39% to 2656. These indices added on to the previous session’s increases of 1.4% and 1.5%, respectively.
“It remains to be seen if more buying strength will get us solidly over the S&P 2700 and 2760 levels of expected resistance,” said Kevin Cook in TAZR Trader. “Or if profit-takers and those under-water from higher levels force us back down to test the lows and create a classic "W" bottom.”
In the portfolios, Insider Trader finally found a stock with insider buying to pick up, while Black Box Trader swapped out four names. Read about these moves and more in the highlights section below:
Today's Portfolio Highlights:
Insider Trader: It’s been slim pickings for insider buys of late, but Tracey found a company to add on Monday. Ethan Allen (ETH) is an upscale furniture retailer that recently traded at 52-week lows following a disappointing pre-announcement for second quarter earnings. Nevertheless, the CEO and CFO both bought shares last week. The editor sees ETH as a short-term play that should rise from oversold levels or get bought out. It was added with a 10% allocation. Read the complete commentary for more on this new addition and get ready for more buys in the days ahead as insider activity is expected to pick up.
Black Box Trader: The portfolio replaced four names this week. The stocks that were sold include:
• Crocs Inc. (CROX)
• Tailored Brands (TLRD)
• Delek US Holdings (DK)
• Taylor Morrison Home Corp. (TMHC)
The new buys that replaced these names are:
• Sysco Corp (NYSE:SYY)
• Centene Corp. (CNC)
• Walmart Corp. (NYSE:WMT)
• Wabash National (WNC)
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: Many investors are constantly looking for "the next big thing". The next Google (NASDAQ:GOOGL)...or Facebook (NASDAQ:FB)...or Apple (NASDAQ:AAPL). While everyone would love to get in on the ground floor of a future tech juggernaut, you shouldn't overlook the tried-and-true names that have stood the test of time. Areas like manufacturing and industrials can still be big winners...especially after this recent pullback. This week, Kevin put Tracey Ryniec at the helm of Zacks Confidential to explain why "old economy" stocks are hot again. Read her article and get three recommendations by clicking: How to Invest in the Old Economy Comeback.
All the Best,
Jim Giaquinto
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