The market didn’t let reports of a multi-billion-dollar margin call cramp it’s style on Monday… at least not too much. Stocks recovered nicely from a morning move lower, and the Dow even finished in the green at another new closing high. The sharply negative open was due to news reports that highly-leveraged firm Archegos Capital Management was forced to sell-off billions of dollars in assets. Consequently, Credit Suisse (CS, -11.5%) and Nomura Holdings (NMR, -14.1%) were among those that will take some losses due to this situation. And that’s the real concern with all this craziness. Investors don’t want the Archegos problem to spread to other parts of the market, especially at such a skittish time when so many are concerned about rising bond yields. (By the way, the 10-year Treasury yield jumped back above 1.7% on Monday after staying below that mark all of last week.) Despite such worries, stocks proved resilient and fought back from the morning doldrums. The Dow completely recovered and advanced 0.30% (or nearly 100 points) to 33,171.37. That’s a second straight session with a new closing high for the index, which has been the biggest beneficiary of the rotation out of tech. Meanwhile, the S&P only lost 0.09% to 3971.09, while the NASDAQ was lower by 0.60% (or nearly 80 points) to 13,059.65. Stocks had a strong end to last week with all three indices jumping by more than 1% on Friday. A late rally lifted the S&P and Dow to new closing highs, while the NASDAQ cut its weekly loss from nearly 2% to just 0.6%. Looking forward, the market will be closed on Good Friday, but you may want to prepare for higher volatility than usual. Potential ramifications from the margin call and end-of-the-quarter rebalancing could make things pretty exciting (or exhausting) in the days ahead. Today's Portfolio Highlights: Black Box Trader: The portfolio had four changes in this week's adjustment. The stocks that were sold today included: • Valero Energy (VLO, +7.4%) • Taylor Morrison Home (TMHC, +6.2%) • Deutsche Bank (DB) • American Axle & Manufacturing (AXL) The new buys that replaced these names were: • Alcoa (AA) • Covanta (CVA) • Groupon (GRPN) • Resideo Technologies (REZI) Meanwhile, this portfolio had a top performer on Monday as U.S. Steel (X) rose nearly 3.7%. Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "The market was down across the board in morning trading, with one overleveraged hedge fund seemingly catalyzing a cascade of sell-offs. Like I said at the end of last week, we have climbed a steep wall of worry throughout the past 52-weeks. Now that some level of normality is in sight, some of the excess in the equity market is beginning to show its colors. "We saw some buyers in the afternoon on the dip, and all the major indices clawed their way back towards the green, but there may be some more systemic risks associated with Archegos Capital's recent implosion. The bulls continue to enter the market, with retail investors being a significant driver despite the inherent risk. Still, bears are ready to pounce if Archegos's forced sell-off has rippling effects across hedge funds. "The bears have been able to keep the VIX (aka the fear index) elevated above 20 today, and overly bullish fund managers may be in for a rude awakening if they haven't felt it yet. The Headline Trader will be moving in on some of the best-positioned discounted equities." -- Dan Laboe Counterstrike: "What astonishes me is the market resilience with all of this. The Nasdaq was still weak, but the SPX rallied back above Friday's highs. So what does this mean for us? "Well as much as we love buying dips, I would like to reiterate something I said above. In times of liquidation, they don't care about price, they just want out. While the pain seems mostly over, there might be others still on the verge of blowing up. I'm very hesitant to buy and with the Nasdaq remaining very weak and still in a short up, I sat on my hands today. "I think another day of trading might clear things up, but let's remember we have the quarter end coming. So, these banks want these positions off their books and they will slam a stock without hesitation. Let's remain patient and cautious." -- Jeremy Mullin Zacks Short Sell List: This portfolio was made for volatile days like this. On Monday, it had the top three winners among all ZU services through its short positions in TAL Education Group (TAL, +7.3%), NeoGenomics (NEO, +4.9%) and Teradata (TDC, +4.1%). Don't forget that this portfolio's weekly adjustment is tomorrow. Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >> Zacks Investment Research