Remember, we need your input to make next week's new Zacks Ultimate Strategy Sessionepisode the best it can be. There are two ways you can participate:
1) Zacks Mailbag:In this regular segment, Sheraz Mian will answer your questions ranging from current market conditions, general investing wisdom, usage of the Zacks Rank or any resources of Zacks.
2) Portfolio Makeover:Neena Mishra, CFA, FRM, and Brian Hamilton will 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 tomorrow morning, April 5. Email now to mailbag@zacks.com.
Stocks managed a dramatic turnaround on Wednesday as morning fears of a brewing trade war with China subsided in the afternoon. How dramatic was it? The Dow opened the session with a loss of more than 500 points…but ended with a gain of 230.
The market has been in an almost perpetual state of worry since President Trump first brought up tariffs a month ago, so this morning’s news that China proposed tariffs on 106 U.S. imports led to a nice selloff on Wall Street. Shortly after the open, the S&P had again fallen below its 200-day and the NASDAQ entered correction territory.
Fortunately, that marked the lowest point of the day. Despite the media craze, we are not yet in a trade war with China and the tariffs will not be implemented immediately. These realizations provided the bulls with enough cover to mount an impressive comeback.
The NASDAQ rose 1.45% on Wednesday to 7,042.1, as Amazon gained more than 1% for a second straight session despite President Trump’s tweeting. The index still has not made up for Monday’s 2.74% plunge, but it's getting closer.
The S&P increased 1.16% to 2644.7, while the Dow’s more than 700-point swing in the session ended with a rise of 0.96% to 24,264.3. These two indices have completely made up for the recent selloff and are now positive for the week.
“While the inside day we saw following Monday’s bloodbath left much to be desired, the slow accumulation day today was just what the doctor ordered. By opening the day lower, finding a bid and bursting through yesterday’s highs the market is offering up some hope for the short term,”said Dave Bartosiak, editor of Blockchain Innovators, Surprise Traderand Momentum Trader.
Dave was one of the active editors on Wednesday. He used today’s bounce to pick up a small renewable energy company in Momentum Trader.Also, Home Run Investoradded a high frequency trading firm that has been prospering during this volatility. Read more about these moves in the highlights section below:
Today's Portfolio Highlights:
Momentum Trader:The original plan was to buy a new stock on Thursday, but this morning’s bounce convinced Dave to move up the timetable. Therefore, he bought a 12.5% position in Ameresco (AMRC) on Wednesday. This Zacks Rank #1 (Strong Buy) is a small renewable energy company that surged following a strong quarterly report, which included a triple-digit positive earnings surprise. Shares have since moved back a bit, but the editor thinks there’s even more upside to come. He also sold Bank of America (BAC) today to make room for the new buy. Read the full write-up for more.
Home Run Investor:As today’s crazy market clearly showed, volatility is here to stay for the time being. Brian Bolan found a stock that has proved it can handle such fluctuations. Virtu Financial (VIRT) is a Zacks Rank #1 (Strong Buy) high frequency trading firm. It has put together two straight quarters with impressive earnings surprises of 69% and 60%. In the most recent quarter, revenue grew 70% sequentially and 169% from the previous year. The editor thinks this stock has room to run. Read the full write-up for a lot more on this new addition.
Have a Good Evening,
Jim Giaquinto