PROGRAMMING ALERT: John Blank was on CNBC’s Closing Bell again this afternoon. He joined a panel discussing the S&P’s chances of surpassing 2500 and Apple’s new iPhone. Click Here to Watch.
The worst of the storms has passed, North Korea hasn’t been trigger-happy of late, and the government actually seems determined to pass some kind of tax reform. The major indices had a lot of positive things to consider today, allowing each of the Big 3 to end at all-time highs.
“In the end, the market is really just fine. We need a big catalyst to move this market lower – and after two huge storms and the brink of nuclear war, I cannot even begin to imagine what is the straw that breaks the camel’s back,” said Brian Bolan in Stocks Under $10.
The S&P logged its second straight record with a gain of 0.34% to 2496.5. So it is once again on the doorstep of 2500 with less than 5 points to go. It’s been here before only to pullback before reaching the goal. Is it finally going to make it?
“2500 or bust! Let’s see what happens tomorrow, but I think 2500 could be a challenge. It just seems too easy. However, things have been pretty easy for the bulls of late, so no surprise if we just rip through that level,” said Jeremy in Counterstrike.
The other two major indices also hit new highs on Tuesday. The NASDAQ climbed 0.34% to 6454.3 and the Dow advanced 0.28% to 22,118.9.
In the portfolios, Counterstrike finally felt comfortable enough to make some moves, so Jeremy added a new stock, added to an existing stock and sold a position. Meanwhile, Short List had a double-digit winner as it swapped out two names this week. Read more in the highlights section below…
Today's Portfolio Highlights:
Counterstrike: Jeremy has been waiting to make some moves in the portfolio…and today he finally got the opportunity. For starters, he bought an 11% allocation in the navigation and communication equipment company Garmin (GRMN). The stock has gone nowhere in the past year, but it recently reported its 8th straight beat and raised its guidance. Computer traders kept the company from gaining on the news, but the editor feels that this opened a great chance to buy. Eventually, he expects it to move to more than $60.
Also, remember that crazy story that PetMed Express (PETS) was marketing to opioid addicts? Jeremy didn’t believe it, and it turned out to be just as false as it sounded. Now he expects the stock to move towards $40. With shares down more than 20% despite a solid quarterly report, he added 4% to the portfolio’s current allocation. By the way, Counterstrike also sold BREW today for a 4.4% profit. Read the complete commentary for more on these moves.
Zacks Short List: The portfolio had a double-digit winner this week by short-covering PDC Energy (PDCE) for a 12.9% return. It also got out of ConocoPhillips (NYSE:COP). The new additions that replaced these names are Liberty Global (NASDAQ:LBTYA) and Cheniere Energy (LNG). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.
Options Trader: "Two back to back monster hurricanes (some of the most expensive in US history), is truly devastating. But looking down the road, the massive cleanup and rebuilding efforts (from removing debris, rebuilding homes and businesses, and replacing cars and trucks, not to mention buying new furniture, clothes, electronics, etc.), will add significantly to the GDP when this begins.
"And with the swift aid packages being approved and rolled out in record fashion, nobody will waste any time rebuilding the areas ravaged by the storms.
"So it should come as no surprise the markets are trading at or near record highs.
"And I believe this trend should continue through year’s end (and more)." -- Kevin Matras
Momentum Trader: "Another day another rally as the market found its way to all-time highs again. I don’t know about the rest of you but something about this market feels different. Something about this market just feels…right.
"I know, I went there, but this market feels like it’s going to take something serious to derail. For a few weeks we chopped around with no direction but since this week kicked off the strength is palpable. Call it enthusiasm for tax reform, relief surrounding the debt ceiling or easing of North Korea tensions. Either way you slice it, things are getting good.
"We just keep rocking and rolling in the market right now. There’s a ton of momentum and everything is looking promising. Expect to see some more trades later in the week as we finally get to take advantage of the new trends which have developed." -- Dave Bartosiak
All the Best,
Jim Giaquinto
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