Dow Reaches 23K

You know what goes great with constantly reaching all-time highs? Moving past one of those “psychologically important” milestones! That’s exactly what the Dow did on Tuesday by briefly breaking through 23,000. The index couldn’t close above the mark, but it was historic nonetheless…especially when you consider that it crossed over 22K just a little over two months ago. 

The Dow finished higher by 0.18% to a new record of 22,997.4, and was the only one of the Big 3 to stay on positive ground for the whole session. The S&P spent most of the day in the red, but scampered upward in the last hour to finish slightly higher by 0.07% to 2559.4. The NASDAQ also made a late-day push, though it petered out by the closing bell and ended down by a scant 0.01% to 6623.7. The healthcare sector was one of the bigger winners on Tuesday, thanks to solid reports from the likes of UNH and JNJ. 

It was a busy day for the portfolios, but the biggest news was the first picks for our new Technology Innovators service. The portfolio is run by Brian Bolan, and today he added 7 names with more to come later this week. In the highlights section below, check out these first picks and make sure to read the service’s guide. The session also included new buys from Surprise Trader, Counterstrike and Momentum Trader, along with a pair of swaps from Short List. 

Today's Portfolio Highlights: 

Technology Innovators: The first picks of this brand-new service were released this morning. The seven inaugural additions are:

• Universal Display Corp. (OLED)
• KEMET Corp. (KEM)
• NVIDIA Corp. (NVDA)
• Micron Technology (MU)
• Progress Software Corp. (PRGS)
• VMware (VMW)
• Facebook (FB) 

Brian Bolan plans to add at least 5 more picks on Thursday to fill up about half of the portfolio. Remember, make sure you receive Technology Innovators’ summary emails and text alerts by choosing them on your preferences page. Also, read this service’s Guide and FAQ

Surprise Trader: For his first picks as the new editor, Dave added 12.5% allocations in The Brink’s Company (BCO) and Lear (LEA). Both of these companies are Zacks Rank #1s (Strong Buys) that report on October 25th. BCO is a household name in armored cars and reported a more than 30% earnings surprise last quarter. LEA supplies automotive seating systems and has soared to more than $170 thanks to solid EPS growth year over year. Read the full write-up for more and get ready for new additions as we make our way through earnings season. 

Counterstrike: The portfolio needs some cash on hand to make moves during earnings season, so Jeremy thought this was a good time to sell the second half of CBIZ, Inc. (CBZ). This business services company wasn’t moving much when the editor first bought it in early September, but he felt that was about to change. He was right. The first half was sold early this month for a double-digit return, and the rest was sold today for a nearly 12% profit. Intuitive Surgical (ISRG) was also sold today on fears that there could be further downside. The portfolio collected a 6.3% return. 

In other news, Jeremy’s surprising decision to go long on volatility by buying iPath S&P 500 VIX ST Futures ETN (VXX) hasn’t paid off…yet. The editor decided to double down on the position due to some selloffs around earnings (i.e. NFLX and GS) and concerns of more provocations from North Korea. The editor sees this as a very short term position that he would have no problem getting out of quickly. Learn more about these moves in the complete commentary. 

Momentum Trader: Dave has made some very good money on Chinese stocks, so he’s not afraid of investing in the country. Therefore, he picked up a 12.5% allocation in 58.com (WUBA), which is an online marketplace in China that’s breaking out from highs. 

Meanwhile, shares of HubSpot (HUBS) have finally pulled back, giving Dave the opportunity to buy this inbound marketing software platform with a 12.5% allocation. He thinks it could be setting up for the next leg higher. The editor said its valuations from a P/E perspective are “eye-popping”, and believes it will start turning a profit in the next two years. The full commentary has more on these moves, including a look at WUBA’s chart. 

Zacks Short List: This week, the portfolio short-covered Liberty Global (LBTYA) and Occidental Petroleum (OXY). These positions were replaced by adding ConocoPhillips (COP) and Incyte Corp. (INCY). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

All the Best, 
Jim Giaquinto

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