SPECIAL ALERT: Remember, we need your input to make next week’s new Zacks Ultimate Strategy Session episode the best it can be. There are two ways you can participate:
1) Zacks Mailbag: In this regular segment, Kevin Matras answers your questions ranging from current market conditions, general investing wisdom, usage of the Zacks Rank or any resources of Zacks.com and more. Pretty much anything goes.
2) Portfolio Makeover: Kevin Cook and Neena Mishra, CFA, FRM, review a customer portfolio to give feedback for improvement. No need to send us personal information such as dollar value of holdings. Simply email us with all of the tickers you own.
Just make sure to email your submissions for either one, or both, by Wednesday morning, July 3. Email now to email@example.com.
The major indices pushed through a slow, pre-holiday session on Tuesday to finish in the green, giving the S&P a second straight record close and helping the NASDAQ to a fifth straight day of gains.
Any advance would’ve made history again for the S&P, and the index didn’t disappoint. It finished at its highs of the day with an increase of 0.29% to 2973.01.
The Dow was up 0.26% (or nearly 70 points) to 26,786.68, while the NASDAQ continued its winning run with rise of 0.22% to 8109.09.
Both the Dow and NASDAQ are within 1% of reaching their own records.
The market has been higher since this past weekend’s trade truce with China, but it hasn’t been exuberant.
Part of the reason is that the G20 outcome was widely expected and didn’t end the trade conflict. Though the two sides will get back to negotiating, we can see another setback at any moment.
And it doesn’t help that the U.S. is threatening new tariffs on EU goods as part of an aircraft subsidies issue that stretches back over a decade and a half.
In addition, questions about a rate cut later this month, concerns about a rough earnings season and the upcoming jobs report on Friday is giving the market a lot to think about heading into the Fourth of July.
Nevertheless, the bulls remain in charge as they were throughout most of June. We’ll have to get through what’s likely to be a very slow rest of this week before we can tell if this momentum can be sustained.
Until then, let’s just enjoy the new highs...
Today's Portfolio Highlights:
Counterstrike: The charts are telling Jeremy that gold is looking good right now and could even break out to new highs later this month. The editor decided the best play was a leveraged product like VelocityShares 3X Long Gold ETN (UGLD), which he added on Tuesday with a 6% allocation. If gold does indeed break out from here, then this position should go “nuts”. But Jeremy isn’t forgetting about silver, which tends to move in tandem with its flashier cousin. He added an additional 5% to the portfolio’s position in ProShares Ultra Silver ETF (AGQ), which he first bought on June 24. It now has a full 15% allocation. Read the write-up for more on today’s moves.
TAZR Trader: In last Thursday’s commentary, Kevin gave a list of 15 “Disruptors” he’s been watching and picked The Trade Desk (TTD) as his top buy. While he had members on notice to buy under $220, he also suggested “Aggressive investors could consider adding under $230.” This morning delivered that dip and TAZR took a “starter” position in the leader in “programmatic” advertising, which is also a Zacks Rank #1 (Strong Buy). The editor likes several things about the stock, but especially its valuation and the growing demand for more targeted, data-driven advertising. Plus, TTD seems immune to the trade conflict, which means its China opportunity is limitless. The portfolio added TTD on Tuesday with a 7% allocation. Read the complete commentary for more.
Stocks Under $10: The portfolio was on the lookout for a little energy exposure this morning when the market was struggling. Brian decided to pick-up Earthstone Energy (ESTE), a Zacks Rank #2 (Buy) independent oil & gas E&P company. The editor appreciates that earnings estimates are on the rise across the board and likes its cheap valuation. Shares of ESTE ended up rising by more than 4% today. Read the full write-up for more on this new buy.
Zacks Short List: This week's adjustment included three swaps. The portfolio short-covered:
• CF Industries (CF)
• United Therapeutics (UTHR)
• Atlassian Corp. (TEAM)
The new additions that immediately filled these spots were:
• Live Nation Entertainment (LYV)
• Western Digital (WDC)
• World Wrestling Entertainment (WWE)
Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.
Have a Great Evening,
Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>
Zacks Investment Research