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Russell Joins Dow At New Highs

Published 12/06/2016, 09:15 PM
Updated 07/09/2023, 06:31 AM


Last week’s tiny rough patch for stocks seems to have run its course, as the market put together its second straight day of gains while reaching a couple of new highs. The Dow climbed 0.18% on Tuesday to a new record of 19,251.8. The S&P closed for a second straight session above 2200 after spending most of last week below that level. The index advanced 0.34% to 2212.2. The NASDAQ increased 0.45% to 5333, while the Russell 2000 rode a solid session for small caps to a new high of 1352.7 after a surge of 1.11%.

In the portfolios, Brian had a double-digit sell in Game Changers AND bought a new position in Stocks Under $10. Large-Cap Trader added a tech company at a good price, while Zacks Short List had three swaps for the week. Learn more below:


RSPP Gains 18%+ for Game Changers

Game Changers sold RSP Permian (RSPP) and Diamondback Energy (FANG) on Tuesday. RSPP was the big winner with a profit of more than 18.5%, while FANG contributed with a gain of 4.7%. Read the full commentary for more info on these sells.


Today's Portfolio Highlights:

• A recent round of selling has opened up a few slots in Stocks Under $10, and Brian filled one of them today with the addition of Kemet (KEM). This Zacks Rank #1 (Strong Buy) is a leader in the electronic component industry. It is a play on the “explosive” growth in devices, which is a beneficiary of the hot semiconductor space. In its most recent report, KEM reported a positive EPS surprise of 175%. The topline, though, missed in the quarter, but the editor believes that revenue growth expectations for this year and next are “very conservative”. Get more specifics on this new buy in the full write-up.

• The recent tech sector pullback has given Large-Cap Trader a great opportunity to add Teradyne (TER), a manufacturer of automatic test equipment for the electronics and communications industries. This Zacks Rank #1 (Strong Buy) is part of a space ranked 5th out of 265 in the Zacks Industry Rank, while its long-term Zacks VGM Score is “A”. TER is John’s first of four picks with a 2% allocation, which comes after the portfolio’s first 11 picks with 8% allocations. Read the complete commentary for more on this new addition.

• Three positions were swapped out in this week’s Zacks Short List adjustment. The portfolio short-covered CRM (+6.9%), PXD and GDDY. It replaced these names by adding Paycom Software (PAYC), Occidental Petroleum (NYSE:OXY) and The Williams Companies (NYSE:WMB). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

• "The positives continue to come in regarding the U.S. economy, suggesting smooth sailing for the near term. Factory orders were pretty solid, productivity continues to move in the right direction, while economic confidence is surging.

"In fact, the Economic Confidence Index surged from -11 in October to +1 in November, continuing the post-election glow in the markets. Overall, it remains hard to argue that many investors are feeling more optimistic about the economy, and the outlook for the U.S. in the near term," said Eric in Surprise Trader.

• "When you look at the markets it seemed like another slow day on Wall Street. Volume was low and markets were moving slow. When the bell rang the S&P was up another 0.34%, while the Nasdaq followed with a 0.45% gain.

"However, if you dig a little deeper there was more to today’s markets. As I review our portfolio and smaller stocks around the market, I noticed a lot of names up 3-5%. Breadth was very strong today and there were 253 new 52-week highs against only 10 new lows.

"While the broad market appears to be stalling, we are in fact slowly getting stronger. My 2240 end year target is well in sight as the bulls remain very much in control," said Jeremy in Zacks Counterstrike.

Good Evening,
Jim Giaquinto

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