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And the NASDAQ Makes Three

And now – after an EIGHT-session winning streak and a BIG boost from Netflix – the NASDAQ is back at an all-time high! The S&P is also at a new high (its second in the past three sessions) and the Dow strung together three straight records last week, but the NASDAQ had the toughest row to hoe after a few difficult weeks for technology that really alarmed the market. 

Stocks started Tuesday with a plunge after news that the Senate would not vote to repeal and replace Obamacare…but that wasn’t exactly unexpected. Once the market recovered from the Washington malaise, the focus shifted to the first big star of this earnings season…Netflix. The stock soared more than 13.5% today after strong subscriber growth numbers yesterday, and was perhaps the biggest reason that the NASDAQ advanced 0.47% today to a new record of 6344.3. 

The S&P is also at a new high after gaining 0.06% to 2460.6, marking its third straight close above 2450. “That pretty much seals the deal on the breakout with new highs soon on the way,” said Steve in RTA. Unfortunately, the Dow couldn’t come along for the ride as the big banks pulled the index lower by 0.25% to 21,574.7. 

The portfolio had a few big winners today. One of them is easy to guess, as Surprise Trader sold a third of its Netflix position for a double digit return. But the bigger winner was in TAZR Trader, which banked 40% on one of its sells. Meanwhile, Short List Trader swapped out two names this week. It’s all waiting for you in the highlights section below: 

Today's Portfolio Highlights: 

TAZR Trader: Applied Optoelectronics (AAOI) has delivered again for the portfolio. With the stock spiking today, Kevin decided to sell this fiber optic networking company on Tuesday to secure a 40%+ return. The editor originally bought this position on June 2 and then added to it later in the month on a pullback. While he still believes AAOI is on its way to becoming a $2 billion enterprise, the ferocious short-covering of the past week has delivered quick, terrific gains that he wants to keep. Read the full write-up for more. 

Surprise Trader: Netflix (NFLX) didn’t disappoint on Tuesday as shares jumped more than 13.5% in the wake of yesterday’s strong subscriber growth. It looks like Eric bought the stock at just the right time yesterday…and today he sold part of it at just the right time as well. The editor trimmed a third off the position this morning for a one-day return of 11.1%. The position was also the best performing stock of all the portfolios on Tuesday. Now that’s a great start to earnings season...

Zacks Short List: Just a couple of swaps this week for the portfolio, as it short-covered ConocoPhillips (COP, +3.2%) and Live Nation Entertainment (LYV). The new additions that replaced these names are Inphi Corp. (IPHI) and Williams Companies (WMB). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. 

Until Tomorrow,
Jim Giaquinto 

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