NASDAQ, Russell Still Riding Tech Rally to New Highs

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It was a case of déjà vu in the market on Tuesday…for the tech sector at least.

Yesterday’s rally in the space continued today, leading to a fresh round of all-time highs for a couple of indices.

The NASDAQ closed at a record for the second straight day and just barely crossed over its intraday peak from March. It was up 0.41% to 7637.86. The new intraday high is at 7644.5. Just like yesterday, the index was helped by history-making performances from the likes of Apple, Amazon, Netflix and Microsoft.

But you don’t have to be a giant to make noise in this market. Long before the NASDAQ climbed the mountain, the Russell 2000 was already reaching new heights as the small caps finally started making waves. It continued today with a rise of 0.68% to 1664.6.

The other major indices, though, weren’t invited to the party as they continue to worry about trade issues heading toward the G7 summit in Canada starting on Friday. The S&P managed a slight 0.07% advance to 2748.8, while the Dow slipped 0.06% to nearly 24,800.

In the portfolios, the ETF Investor has both bases covered by adding a fund that invests in small cap tech names. Other trades on Tuesday include Counterstrike taking a double-digit profit and making a move to capitalize on the pullback in oil. Also, Brian Bolan added in Technology Innovators and Stocks Under $10. Read the full write-up for more...

Today's Portfolio Highlights:

Counterstrike: The portfolio needs to raise some cash to make new trades as this market seems set to run higher. Atlas Air Worldwide Holdings (AAWW) presented the perfect opportunity when this provider of outsourced aircraft & aviation operating services finally moved above Jeremy’s targets. He sold the stock today for a gain of more than 21% in a little over two months. He also sold Dana (DAN) at the same time.

For the new buy, the editor is looking for exposure to crude oil now that’s its dropped to a more attractive level of $65. He picked up VelocityShares 3X Long Crude Oil ETN (UWT) with a small starter position of 3%. Read the full write-up to learn more about these moves.

Technology Innovators: Despite a beat and raise quarter, shares of DropBox (DBX) moved lower and have now stabilized around $30. Brian Bolan thinks this is a great time to get into this service company that offers a platform for users to store and share files, photos, videos, songs and spreadsheets. The editor likes that this company does not try to monetize your data, which sets it apart from Facebook and Google. He sees the stock as having great growth potential and being a good longer-term holding. Read the complete commentary for more, and get ready for another buy on Thursday as Brian moves to fill the portfolio back up.

ETF Investor: The market is all about technology and small caps right now, and Neena thinks these spaces will continue to be hot for some time to come. The editor wants exposure, so she picked up PowerShares S&P SmallCap Information Technology ETF (PSCT) on Tuesday. The fund holds technology stocks within the S&P SmallCap 600 Index and it has a lot of allocation to industries with strong Zacks Ranks. Read the full write-up for more on this addition.

Stocks Under $10: Shares of Amtech Systems (ASYS) recently came back to earth on fears that business would be pressured in China. This Zacks Rank #1 (Strong Buy) makes chips that are used in the solar segment and has the rare combination of both growth AND value. After the stock rose past $10, Brian Bolan was kicking himself for not buying it in the low $9s. But now it’s in the mid-$8s…and the editor couldn’t be happier! He added ASYS to the portfolio on Tuesday. Learn a lot more about this new addition in the full write-up.

Zacks Short List: The portfolio swapped out three positions this week. The stocks that were short-covered include:

• Schlumberger (SLB)
• Ionis Pharmaceuticals (IONS)
• Devon Energy (DVN)

The new buys that replaced these names are:

• Applied Optoelectronics (AAOI)
• MGM Resorts Int'l (MGM)
• Square Inc. (SQ)

Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Have a Good Evening,
Jim Giaquinto

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