From the start of October through the tail end of November, growth stocks (and, more generally, high relative strength stocks) were the dog’s dinner, flailing around even as the major indexes advanced. Now, though, with many stocks having etched two-month launching pads, the tone has improved—money is slowly (emphasis on slowly) coming out of defensive names and into faster movers. A bit more improvement and we’ll shift our Market Monitor into bullish territory, but for now, we’ll stick with our general “lean bullish” stance.

Another good sign is that, in this week’s list, we see many stocks that have shown recent power and are trading relatively tightly, a good sign of accumulation. Our favorite of the week is Harman International (HAR), a well-situated audio firm with very solid sales and earnings growth. The stock looks like it’s at a good entry around here.

Stock Name	Price	Buy Range	Loss Limit
Perrigo (PRGO)	0.00	151-154	140-142
Las Vegas Sands Corp. (LVS)	0.00	74-77	68-69
Illumina Inc. (ILMN)	289.74	97-101	90-91
Harman International Industries, Inc. (HAR)	0.00	78-80	70-71
Financial Engines (FNGN)	0.00	65-68.5	59-60
Deckers Outdoor Corp. (DECK)	141.68	83-85	70-71
Conn’s Inc. (CONN)	0.00	69-73	63-64
Baidu (BIDU)	0.00	165-170	140-145
AOL, Inc. (AOL)	0.00	42.5-45	39-40
Ambarella (AMBA)	52.79	23-24.5	20.5-21.5

The market didn’t do all that much during the holiday-shortened week, so our overall stance is unchanged—we’re still leaning bullish but are also holding some cash and are more focused on being patient and buying stocks at lower-risk entries. That said, we have seen a (very) subtle shift during the past couple of weeks; some of the defensive-type names have stagnated, with growth and speculative stocks acting a bit better. It’s too early to conclude that a big shift has occurred, but it’s something to watch closely—a movement back into growth stocks would be very encouraging.

In the meantime, we’re looking for newer names that have shown excellent power of late. This week’s list is chock-full of them, and our Top Pick is Biogen Idec (BIIB), a big biotech firm with big earnings growth coming. The stock just gapped out of a multi-month zone on favorable news.

Stock Name	Price	Buy Range	Loss Limit
Workday (WDAY)	194.88	78.5-81.5	75-75.5
Johnson Controls International plc (JCI)	0.00	48-50	43-44
Gogo Inflight (GOGO)	0.00	27-30	22-23
First Solar (FSLR)	83.74	59-61	49-51
Fifth & Pacific (FNP)	0.00	30.5-32	27.5-28
New Oriental Education (EDU)	113.97	28.5-30	26-26.5
Dexcom (DXCM)	421.36	33-35	29-30
Canadian Solar (CSIQ)	0.00	29-30.5	23-24
Bitauto Holdings (BITA)	0.00	29.5-31	25-26
Biogen (BIIB)	0.00	285-295	267-268

The major indexes remain in uptrends, there’s no doubt about that. And, despite some still-soggy action among many growth stocks, most of the broad market is trending higher, too. But not all uptrends are equal, and right now, we don’t see much power out there. That’s not a bad thing, per se, but it’s more of a two-steps-forward, one-step-back kind of advance, with lots of rotation still going on week to week. By all means, continue to do some buying in names you like, but we also advise holding some cash and picking your spots.

This week’s list has a slightly steadier feel to it than prior weeks, as money flows toward companies with dependable growth. There are also a few stocks that have popped on earnings and tightened up of late, including SanDisk (SNDK), which is our top pick. Shares are at a good risk-reward point here.

Stock Name	Price	Buy Range	Loss Limit
Waddell & Reed (WDR)	0.00	63-65	56-57
SanDisk Corp. (SNDK)	0.00	67-70	64-65
Salix Pharmaceuticals (SLXP)	0.00	86-88	74-75
US Silica Holdings, Inc. (SLCA)	0.00	31-33	29.5-30
Mohawk Industries (MHK)	0.00	138-143	129-130
Southwest Airlines (LUV)	0.00	17.5-18.5	15-16
Baker Hughes (BHI)	0.00	56.5-58.5	53-53.5
HomeAway, Inc. (AWAY)	0.00	35-37	31-32
Actavis (ACT)	0.00	160-163	156-157
ACI Worldwide (ACIW)	0.00	60-61	58-59

From a top-down perspective, the intermediate-term trend is up and most dips are met quickly with buying (Friday was a good example of that). But looking at individual stocks, we are seeing more and more iffy action; more groups are acting sloppily after big runs, strength is being sold into, and volatility is on the rise. None of this means you should be running into the storm cellar or that a big drop is a sure thing, but there’s enough worrisome evidence to hold some cash, to keep losers and laggards on tight leashes, and to be discerning in terms of what (and at what price) you buy. We’re knocking our Market Monitor down a peg.

What we like about this week’s list is that it’s mostly stocks that are out of the public’s eye—they haven’t been hot in recent weeks. Our favorite of the week is Canadian Pacific Railway (CP), which just broke free from a multi-month base and is part of the still-strong transportation group.

Stock Name	Price	Buy Range	Loss Limit
Ubiquiti Networks (UBNT)	170.11	39-41.5	35.5-36
Spirit AeroSystems (SPR)	92.54	27-29	25-26
SM Energy (SM)	0.00	85-87	80-81
The Priceline Group Inc. (PCLN)	0.00	1,040-1,070	990-1000
Harman International Industries, Inc. (HAR)	0.00	75-78	68-69.5
Halliburton (HAL)	0.00	52-55	49-50
First Solar (FSLR)	83.74	58-60	49-50
Canadian Pacific Railway (CP)	0.00	140-146	130-131
Chicago Bridge & Iron (CBI)	0.00	75-76.5	69-70
Bitauto Holdings (BITA)	0.00	24-25.5	20-21

There continue to be lots of crosscurrents in the market, with many stocks chopping around, lots of big earnings moves (in both directions) and a few leaders from this summer coming under pressure. Overall, though, the bull market is intact, so the lesson from the action is to pick your spots and remain selective when doing new buying. As for your winners, you should give them a chance to breathe, but it’s also important to have mental stops in place—we’re still seeing plenty of rotation out of this summer’s highfliers and into other stocks and sectors.

This week’s list has few stocks that are on most investors’ radar screens, which we view as a good thing. Our favorite of the week is WisdomTree (WETF), a smaller Bull Market stock with a unique story and huge growth numbers.

Stock Name	Price	Buy Range	Loss Limit
United States Steel Corporation (X)	0.00	25-26.5	21-22
WisdomTree (WETF)	0.00	13-14	11.5-12
Trinity Industries (TRN)	0.00	50-52	47-48
Taser (TASR)	0.00	15.5-17	13-14
Las Vegas Sands Corp. (LVS)	0.00	68-70	62-64
Gilead Sciences (GILD)	75.10	68-71	63-64
CARBO Ceramics (CRR)	0.00	114-122	100-102
BE Aerospace (BEAV)	0.00	79-82	74-75
CR Bard Inc. (BCR)	0.00	133-136	126-127
Amazon.com (AMZN)	2.00	345-355	328-332

During the July-through-September period, we often saw the major indexes lag (the S&P 500 went nowhere from mid-May through mid-October) while growth leaders surged. Now, though, we’re starting to see the opposite—the broad market’s health has improved, and many groups have come to life, but just about any stock that’s had a huge run in recent months is under pressure. We don’t advise panicking out of all your winners, but set your stops and consider booking partial profits. On the flip side, there are many less well-known names that are acting great, including a bunch that have recently broken out on earnings, and that’s where any new buying should be focused.

This week’s list has a nice collection of those type of names. Our favorite is United Rentals (URI), a company we’ve long liked, and now the stock is getting going after an eight-month rest.

Stock Name	Price	Buy Range	Loss Limit
Whiting Petroleum (WLL)	0.00	65-68	58-59
United Rentals, Inc. (URI)	0.00	63-65	59-60
Nu Skin Enterprises Inc. (NUS)	46.07	110-115	98-100
ServiceNow (NOW)	341.86	54-56	48-50
Northrop Grumman (NOC)	0.00	104-107	96-97
Noble Energy (NBL)	0.00	74-75	69-70
Illumina Inc. (ILMN)	289.74	90-92	84-85
Gentex Corp. (GNTX)	0.00	27.5-29.5	24-26
Five Below (FIVE)	134.58	46.5-49	43-44
Align Technology (ALGN)	316.20	54-56	46-48

It wasn’t surprising to see the market pick up some steam following the resolution to Washington’s latest deadline. But what has been surprising is the sheer strength seen from the broad market and leading stocks. They’re hot! And, as we had hoped, some new leadership is beginning to emerge during earnings season. Of course, investor sentiment is bubbly, earnings season is still ongoing and many stocks are extended, so some potholes are possible. But given the evidence, we’re shifting our Market Monitor back into bullish territory.

This week’s list has a bunch of names that had been taking a breather during the past two to four months, but have now come alive on big volume as the buyers return. Our favorite is Spirit Airlines (SAVE), one of the few airline stocks that has a true, sustainable growth story.

Stock Name	Price	Buy Range	Loss Limit
Tesla, Inc. (TSLA)	818.87	165-175	145-150
Seagate Technology (STX)	0.00	47-50	42.5-44
Stratasys (SSYS)	0.00	105-110	99-100
SunPower (SPWR)	12.26	32-34	26-27
SanDisk Corp. (SNDK)	0.00	67-69	61-62
Spirit Airlines (SAVE)	57.03	40-43	35-36
Google Inc. (GOOG)	0.00	980-1,000	862-882
Finisar (FNSR)	0.00	24.5-26	22-23
Bonanza Creek Energy (BCEI)	0.00	51-54	45-46
Athenahealth (ATHN)	0.00	130-138	116-118

This is the week of the debt ceiling deadline, and while it appears Washington is coming close to a deal, nothing is final yet. And that means continued uncertainty in the days ahead, so be sure to continue following the evidence. Thus far, the evidence remains encouraging: most stocks are in good shape, and while some abnormal activity was spotted last week, the bulls have stepped up to the plate since. We remain in a “lean bullish” stance, holding some cash but also holding our best performers and looking for new buys on dips.

This week’s list highlights the newfound strength in energy stocks—there’s four of them featured this week. Our favorite is Continental Resources (CLR), which we think is an emerging blue chip in the sector, though all of its energy peers also have solid prospects.

Stock Name	Price	Buy Range	Loss Limit
Yandex (YNDX)	0.00	36.5-38	33-34
Melco Crown (MPEL)	0.00	32-33.5	28-30
Cheniere Energy (LNG)	63.82	34-36.5	30-32
HCA Healthcare (HCA)	137.60	45-46.50	39-40
Facebook, Inc. (FB)	0.00	47-49	43-44
Dril-Quip (DRQ)	0.00	113-115	109-110
Carrizo Oil & Gas (CRZO)	24.03	40.5-42.5	36.5-37.5
Continental Resources (CLR)	66.19	108-112	100-102
Infoblox Inc. (BLOX)	0.00	41-43.5	36-37
ARM Holdings (ARMH)	0.00	46-48	43-44

It seems like nearly every October gives the market something to worry about, and this year it’s (again) the politicians in Washington, D.C.—statements and rumors from various leaders have been pushing and pulling the market in recent days, and there’s no reason to expect anything less in the near-term. That said, despite day-to-day (sometimes hour-to-hour) volatility, the market’s overall stance hasn’t changed much; the indexes are in good-not-great shape, but most leading stocks have taken it all in stride. Thus, we’re sticking with our lean bullish advice, and think buying during weakness can pay off.

This week’s list is encouraging in that many names are new to Top Ten; while the market hits some potholes, money is still finding a home in more and more stocks. Our favorite of the week is U.S. Silica (SLCA), another play on the rebounding oil sector; we like its reasonable valuation, recent breakout and big increase in sponsorship in recent quarters.

Stock Name	Price	Buy Range	Loss Limit
YY Inc. (YY)	0.00	46-48	43-44
Yelp (YELP)	41.30	67-70	59-61
Synaptics (SYNA)	0.00	45-47	39-40
Sanchez Energy (SN)	0.00	26-28	24.5-25
US Silica Holdings, Inc. (SLCA)	0.00	27-29	24-24.5
Sina Corp. (SINA)	0.00	86-88	78-80
Canadian Solar (CSIQ)	0.00	17.5-19	15-16
Centene (CNC)	0.00	62-64	58-59
Chicago Bridge & Iron (CBI)	0.00	67-69	60-61
Buffalo Wild Wings (BWLD)	0.00	112-116	106-107

Our fearless leaders in Washington are at it again, and the uncertainty surrounding a potential government shutdown has cast a pall over the market during the past two days. Still, it’s as important as ever to make sure you keep your eye on the ball—news and rumors are sure to come fast and furiously in the days ahead, but what counts is the action of the market itself and leading stocks. And right now both look fine! If the evidence changes then we’ll change our advice, but tonight we’re keeping our Market Monitor where it’s been and our advice remains unchanged.

This week’s list has a nice mix of repeat recommendations, as well as stocks that are showing up for the first time in many months or years. Our favorite of the week is Oasis Petroleum (OAS), a stock that just leapt out of a three-year consolidation following a major acquisition.

Stock Name	Price	Buy Range	Loss Limit
Wynn Resorts (WYNN)	121.08	152-157	138-140
Vipshop Holdings (VIPS)	14.25	53-57	44-46
Trina Solar (TSL)	0.00	14-15	11-12
Taser (TASR)	0.00	13.5-14.5	11.5-12
Pinnacle Entertainment (PNK)	0.00	24-25	22-23
Oasis Petroleum (OAS)	12.57	47-49	42-43
Nexstar Media Group (NXST)	105.68	42-43	39-40
Chart Industries (GTLS)	72.05	120-125	113-115
Ciena (CIEN)	44.25	24-25	22-23
Baidu (BIDU)	0.00	144-150	133-135

In recent weeks, we’ve seen outstanding moves among growth stocks (and, increasingly, the broad market), which coincided with increasing giddiness among many investors. That’s a yellow flag, and today, we saw the first signs of abnormal selling among the leaders—big-volume distribution was evident among many stocks, no matter what the sector. To be fair, few names truly broke down, so we’ll keep our Market Monitor where it’s been. But today was a shot across the bow; the next few days should tell us whether this is a shakeout (we’ve seen a few this year), or whether a deeper (and well-deserved) retreat is likely during October.

This week’s list has many names that are more recent winners, and those types of names held up far better than most extended stocks today. Our favorite of the week is Las Vegas Sands (LVS), a leader from 2009-2010 that has re-emerged after a two-year rest. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Whirlpool (WHR)	0.00	144-147.5	138-139
Workday (WDAY)	194.88	75-78	68-70
Ulta Beauty (ULTA)	331.95	111-116	100-102
Safeway (SWY)	0.00	29-31	26-27
NQ Mobile (NQ)	0.00	21-23	18-19
Las Vegas Sands Corp. (LVS)	0.00	62-65	58-59
Incyte Corporation (INCY)	76.98	33.5-35	29-30
Finisar (FNSR)	0.00	22-24	20.5-21
Salesforce.com (CRM)	0.00	50-52	46-47
Boeing (BA)	432.22	114-117	107-107.5

The major indexes continue to act very well; today’s pop higher is par for the course. That said, the hot growth stocks of the past few weeks are starting to take a breather; there hasn’t been much abnormal selling, but new buying is being focused on some other groups. Moreover, investor sentiment has, by our measures, become elevated, which raises risk. Altogether, we’re leaving our Market Monitor where it has been. Continue to keep your feet on the ground and try to do your buying on weakness, or in stocks that are recently emerging from multi-week pauses.

This week’s list has a bunch of newer names to Top Ten, or at least stocks that haven’t appeared in a couple of months or longer. Our favorite is Five Below (FIVE), a small but exciting growth company whose stock just popped out of a long consolidation.

Stock Name	Price	Buy Range	Loss Limit
Swift Transportation (SWFT)	0.00	19-20	18-18.5
Qihoo 360 (QIHU)	0.00	79-84	68-69
Ocwen Financial (OCN)	0.00	54-56	49-50
Melco Crown (MPEL)	0.00	29-30.5	25-26
Cheniere Energy (LNG)	63.82	30-32	25-27
Gulfport Energy (GPOR)	0.00	60-63	53-55
Five Below (FIVE)	134.58	45-48	41-42
Dril-Quip (DRQ)	0.00	107-111	101-103
Concur Technologies (CNQR)	0.00	105-110	88-90
ACADIA Pharmaceuticals (ACAD)	47.84	22-23	19-20

It’s been an interesting week here in Rhode Island, where most people are finally dug out from the roughly three feet of snow that fell across the state Sunday night and into Monday.

Growing up in Vermont, major snowstorms were certainly disruptive. But more often than not, it was all about how we would get to the ski resort without going off the road.

Hello from sunny Florida!

I am on vacation with my family this week, taking a much-needed break from the harsh, snowy Vermont winter (and narrowly making it down here ahead of the latest blizzard to dump another foot or two of snow on the Northeast). But with so much going on in the market – tariffs rejected! GDP growth slowing! AI panic! – I wanted to provide an update on everything that’s going on with our stocks.

It’s the same basic market story as it has been for the last four months. Technology is floundering while other sectors are killing it. But a couple of events occurring this week could potentially change the dynamic.

For value-focused investors, this year’s prologue has been a welcome change from the turmoil experienced in early 2025.

In just the past few weeks, some of last year’s most ignored or underappreciated laggards have posted outsized gains, with rallies that have made even momentum-driven tech stock traders envious. Even more remarkable is the fact that much of that strength has been concentrated in ultra-defensive areas of the market like consumer staples, utilities and healthcare.

The market rotation continues to be the main story out there this week, though rumblings of a potential strike on Iran, an update from the January FOMC meeting, and a slew of earnings reports and economic data releases have been giving investors plenty to think about.

In terms of the rotation, the equal‑weight S&P 500 ETF (RSP) is up 5.5% so far this year, illustrating that leadership is broadening beyond the narrow group of mega‑cap stocks that drove much of last year’s performance.

Year to date, the S&P 600 SmallCap Index is up 8.3% and the S&P 400 Mid‑Cap Index is up 7.9%. Both are comfortably outperforming the S&P 500, which is up just 0.1%, and the Nasdaq, which is down 2.1%.

Happy Chinese New Year! The year of the horse is upon us.

China is expecting an incredible 9.5 billion trips to be made during the 40-day Lunar New Year travel period. Chinese automakers are also on the move as the country’s numerous brands sold nearly 200,000 vehicles in Britain last year, doubling their market share to almost 10%.

As U.S. investors have shifted from risk-on to risk-off mode in recent months, a clear disparity between the “haves” and the “have-nots” has materialized.

Let’s start with the “have-nots.” Financials have fared the worst so far this year (-4.7%), followed by technology (-3.1%), communication services and consumer discretionary (-2.8% each). The downturn in the two tech-related sectors in particular is a stark departure from recent years, when technology led the charge of the current bull market.

Cyclical stocks are soaring and technology is floundering in the transformed market.

The bull market is turned upside down. For most of the first three years, technology, and particularly AI stocks, soared while most other stocks did very little. Now, previously meandering stocks are killing it while technology sinks.

Strong fourth-quarter earnings are confirming what the market was already doing.

Current estimates based on earnings reported so far are for 13.2% overall S&P earnings growth for the quarter. It’s a solid quarter and the fifth straight quarter of double-digit earnings growth. In terms of sector performance, cyclical companies are killing it, and technology is floundering, just like before earnings.

Like many coffee aficionados, I have something of a love/hate relationship with Starbucks (SBUX). My main gripe is that the company’s food and beverage offerings have always been pricey compared to the fare served in most fast-food restaurants and run-of-the-mill coffee houses.

The outperformance of small caps continues.

Through Tuesday’s close, the S&P 600 is up 10% year to date versus just 1.6% for the S&P 500.

All but three small-cap sectors are outperforming their large-cap counterpart. The strongest small-cap sectors are materials (+20%), energy (+23%), industrials (+17%), and tech (+11.4%).

Let’s talk about the power of staying invested.

Sure, when the market turns south – and I’m not even sure last week’s mini-dip qualifies – it makes sense to pare back on your weakest stocks and put a larger portion of your portfolio in cash. But taking your ball and going home – selling out of all of your stocks when times are tough – is not a winning strategy. Here’s why.

Last summer, problems with the Chinese stock market, economy and currency caused ripple effects all over the globe. As a result, U.S. stock markets fell dramatically in August and September, recovered with a stunning one-month gain in October, then pulled back a bit. We are seeing literally the same situation play out again this week.

Stocks are cheap, so we’re adding some bargains to the Smart Investing in Turbulent Times portfolios today.

I’m adding BorgWarner to the Buy Low Opportunities Portfolio today, and I encourage you to buy at the current price.

Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.