Waiting On The Oath

This feels a lot like one of those weeks when the market sits back and waits for a big event. But this time it’s not a Fed announcement or jobs report that’s keeping us in suspense. Instead we’re waiting to inaugurate a unique President-elect that promises to mix things up in Washington with unknown consequences. It’s rather impressive and surprising that this naturally jittery market has held itself together so far…but how much longer can that last?

“It seems like energy is building for a big move and something will happen soon, but for now we continue to be stuck in between 2260 and 2270 in the S&P futures,” stated Jeremy in today’s Zacks Confidential. “So basically, we are stuck until policies become clearer.” On Wednesday, the S&P crept forward by 0.18% to 2271.9, but the Dow declined by 0.11% to 19,804.7 for its fourth straight loss. The NASDAQ was up 0.31% to 5555.7.

Stocks Under $10 cashed in two double-digit winners on Wednesday. Meanwhile, the Surprise Trader hasn’t forgotten that we’re in the midst of earnings season, as it added an oil services company with a good record of positive surprises that’s scheduled to report next week. Zacks Counterstrike doubled a steel position as part of a “Trump trade”. Learn more about all of this in the highlights section below:


Harvest Time for Stocks Under $10

→ Stocks Under $10 had two big winners on Wednesday as Brian made good on his promise to “harvest some fruit on the branches” of the portfolio. With oil failing to hit $60, the editor thought it was best to sell off-shore driller SeaDrill Partners (SDLP) for a solid return of 21% in a little over 3 months. Meanwhile, he feels that satellite radio company Sirius XM (SIRI) is underperforming, so the position was sold while he could still reap a 15% benefit. In addition, both of these stocks had slipped to a Zacks Rank #4 (Sell). Get ready for some new buys in the next couple of weeks.


Today's Portfolio Highlights:

• So far this earnings season, the Surprise Trader has added financials and transportation stocks. For its latest pick, it has entered the oil space…or more specifically the oil services industry. The portfolio added a 12.5% allocation in Halliburton (NYSE:HAL), which hasn’t missed quarterly estimates in nearly 2 years and has amassed an average beat of 61% in the past 4 quarters. That’s a great track record heading into its next announcement on January 23 before the bell. This Zacks Rank #1 (Strong Buy) also has impressive rankings for industry and sector. Read the complete commentary for more specifics on this new addition.

• The “Trump trade” added another dimension to Zacks Counterstrike’s position in the specialized steel service center Olympic Steel (ZEUS). Steel stocks made a massive move higher today when Commerce Secretary designate Wilbur Ross spoke about the possible need for tariffs, which could give the steel space a boost for months to come. Jeremy thought that now was a great time to double down on ZEUS in the portfolio. Learn a lot more about this move in the complete commentary, including what kind of stop losses to use.

Until Tomorrow,
Jim Giaquinto