A Short but Not So Sweet Session

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This shortened, pre-holiday session was the reverse of yesterday. This time, the major indices started the session on the positive side before a late selloff left them all in the red. 

Tech led the way lower on Tuesday, exacerbated by a news report that China was temporarily banning the sale of Micron chips in the country. As a result, the NASDAQ had the roughest day with a slip of 0.86% to 7502.7. 

The other two major indices tried to keep their heads up, but they eventually turned lower and then really dropped in the final hour. The Dow moved from a more than 100-point gain to a loss of approximately 132 points by the close. It was off 0.54% to 24,174.8. The S&P took the same trip and finished with a drop of 0.49% to 2713.2. 

All three of the indices snapped three-session winning streaks. 

The Russell 2000, though, managed to hang on during the selloff and advance 0.32% to 1660.4. 

Now we get a little break to celebrate the country’s birthday. Volume is likely to be light when we open up again on Thursday, but the rest of the week will still be eventful as the Government Employment Situation report is scheduled for Friday. 

Today's Portfolio Highlights: 

Zacks Short List: The portfolio only made one change this week. It short-covered GoDaddy (GDDY) and replaced it by adding Zayo Group (ZAYO). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. 

Momentum Trader: Despite the late pullback on Tuesday, BioLife Sciences (BLFS) had another solid session. The regenerative medicine company moved higher yesterday after a bullish reaction to its earnings…and today it was the only stock in the portfolios to climb by double digits. It advanced 11.4%. BLFS enjoyed this strong performance even though it too moved lower from its intraday highs along with the general market. 

Value Investor: "But even with all of these issues looming, the bulls remain firmly in charge. This is the difference between a secular bear market and a secular bull. In a secular bull, there are pullbacks, but it shakes those off and continues to move higher. 

"Earnings season starts next week. That will give Wall Street something else to focus on. It should be another strong quarter. I intend to keep us fully invested as those reports roll in. 

"The bulls are strong. Don't try and fight them. Pick your strategy though. Small caps and tech are still working. Stay away from anything auto related. Industrials are also difficult. And don't buy any farming related stocks right now. 

"Look for opportunities." -- Tracey Ryniec, who also heads the Insider Trader.

Happy Fourth of July!
Jim Giaquinto

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