2017: A Much Better First Impression

posted by Zacks | published by Amigobulls on January 6, 2017

By this time in 2016, we already knew it was going to be a baaaad start to the year. Two of the first three trading sessions last year saw drops of more than 1%...for each of the major indices! By the end of January, the S&P and the Dow had each slumped by more than 5% while the NASDAQ was off 8%.

But that was then and this is now. Sure, a couple of the indices finished in the red on Thursday, but it was their first losses of the year after gains in the first two sessions. And it looks like there’s plenty of fuel for the market to continue moving higher after the latest round of encouraging economic data, especially ISM Manufacturing and ISM Services.

For Thursday though, a sharp selloff in retail after weak forecasts from Kohl’s and Macy’s had an impact on the market. The S&P was down 0.08% to 2269 even and the Dow was off 0.21% to 19,899.3. The NASDAQ kept moving in the right direction with an advance of 0.20% to 5487.9.

Reitmeister Trading Alert would love it if investors “stop the insanity” that led to the retail selloff, but for now Steve decided to take advantage of such illogical tendencies and add a retailer that was too expensive until today. He also sold part of a position to make room and banked a double-digit profit. Meanwhile, Zacks Confidential sold two positions today for double-digit returns each. Read more below:

Two Portfolios, Three Double-Digit Winners

→ Semi stocks were rather weak today, but Western Digital (WDC) hung on for a slight gain after an upgrade by BMO. Jeremy decided to sell into this strength on Thursday and take WDC off the table after about a month-and-a-half. The sale brought a strong return of 19.2% for Zacks Counterstrike. While the editor was in a selling mood, he decided to halve the portfolio’s position in Netflix (NFLX) as well and bank a 14.8% profit.

→ The Reitmeister Trading Alert took advantage of this nonsensical selloff in retail with a new addition, but first Steve had to make some room. It was a tough decision, but the editor sold some shares of Berry Plastics (BERY) since it is one of the portfolio’s largest positions. RTA made 14.4% on the sale and still has a 6.8% allocation in the name. Learn about the new addition below:

Today's Portfolio Highlights:

• The “stupidity” of this retail selloff brought women’s apparel retailer Francesca’s (FRAN) down to around $17 from about $22…which is exactly what Steve was waiting for. The company is having a big turnaround that really caught the editor’s attention, but it was too expensive until today. Reitmeister Trading Alert pounced on this opportunity and added this Zacks Rank #1 (Strong Buy) with a 6.4% allocation. FRAN is about 23% off of its recent peak, so there’s plenty of running room. Read the full write-up for more on all of today’s moves.

All the Best,
Jim Giaquinto

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