The December episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this "must-see" event when Sheraz Mian, David Bartosiak, Tracey Ryniec, Brian Hamilton and Dr. John Blank discussed the investment landscape from most every angle. Don't miss your chance to hear: • Sheraz and Tracey Agree to Disagree on what can derail the rally and the downside risks to the market in 2018 • David and Brian answer your questions in Zacks Mailbag • Sheraz and Brian choose one portfolio to give feedback for improvement • And much more Simply log on to Zacks.com and view the December episode here. And please let us know what you think of the new format. Email all feedback to mailbag@zacks.com. So the market has been waiting for tax reform ever since President Trump was elected, and now that it’s about to happen…stocks drop? It’s frustrating, but certainly not unheard-of, especially for legislation that had been gaining momentum for weeks and is widely expected to pass. The House passed their end of the tax bill earlier today. But nothing is easy in Washington these days. It looks like the House is going to have to vote on it again tomorrow due to some sort of procedural problem. The Senate still plans to vote sometime tonight or early tomorrow. Ultimately, it is expected to pass both houses and get to the President’s desk. However, that didn’t help the market on Tuesday, as each of the major indices moved lower a day after they all hit record highs. The S&P was off 0.32% to 2681.5, the Dow declined 0.15% to 24,754.8 and the NASDAQ slipped 0.44% to 6963.9. A couple of the editors are talking about today’s market action in the highlights section below. While you’re there, take a look at the three swaps in Short List for this week. Today's Portfolio Highlights: Zacks Short List: The portfolio swapped out three positions in this week’s adjustment. Firstly, it short-covered these stocks: • Sina Corp (SINA) • Gardner Denver Holdings (GDI) • Cheniere Energy (LNG) Then it replaced those names by buying: • IAC/InterActive (IAC) • Molina Healthcare (MOH) • Tribune Media (TRCO) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. Momentum Trader: "Today Congress got one step closer to passing the tax bill. The House voted 227 to 203, mostly along party lines, in favor of the “Tax Cuts and Jobs Act.” Only 12 Republicans voted against the measure today. The bill will cut the corporate rate from 21% to 35%. The next hurdle awaits in the Senate. "You’d think that sort of news would have provided a big boost for the market today but that was not the case. Stocks came under pressure all session. "I hope this isn’t becoming one of those “Buy the rumor, sell the news” trades here with the tax plan. For months Congress has been working on putting together this package and for months this market has been in “Go mode.” I don’t believe the end is near for this bullish run. Just wait until you see more earnings estimates coming out to the upside on the heels of this news. It will surely help boost the market." -- Dave Bartosiak Counterstrike: "We are expected to have the final tax bill vote tonight in the Senate. The vote will likely go well for President Trump and the Republicans as they now seem to have 52 votes. The passage is expected from the market, so it was no surprise to see stocks slip a bit into the event. "Buy the rumor, sell the news" is a popular saying on Wall Street and it looks like some traders were positioning themselves for further downside, especially in tech. "The last two weeks of the year often bring lower volumes and liquidity, which can bring exaggerated moves in the market. Often stops get run as people are away from their desks and we see some volatility. However, most moves snap right back as they can be irrational. So I expect low volume, but some whacky moves into the New Year. "The tax vote should come in by the time this letter goes out, but who knows with Congress. I expect the market to have little reaction as it is fully expected to pass. If there is a "sell the news" type move in the market we might look to buy. Other than that expect a quiet week." -- Jeremy Mullin Have a Good Evening, Jim Giaquinto One More Thing... We've just released our 5 Stocks to Double special report which includes five stocks our team believes have the potential to grow +100% in the next 12 months. This latest report features favorite stocks from Brian Bolan, Neena Mishra, CFA, FRM, Madeleine Johnson, Ryan McQueeney and Brian Hamilton. Log on to Zacks.com to see these stocks today. 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