If you’re invested in leading growth stocks, you’re probably doing very well; many of them have been shooting ahead, and on big volume to boot! That said, the broad market still isn’t acting right, and the longer that goes on, the greater the chance of some potholes in the days or weeks ahead. We’re not anticipating anything drastic, and we think holding your strong, profitable stocks is your best move. But we’ll continue to keep our Market Monitor just shy of bullish territory—holding some cash and picking your spots is important, especially with so many stocks extended to the upside.

This week’s list has many newer names (to us), which could reflect the start of a rotation into some previously stagnant groups. Our favorite of the week is Energen (EGN), one many good-looking energy stocks out there; we think it’s a solid buy here or on any weakness.

Stock Name	Price	Buy Range	Loss Limit
YY Inc. (YY)	0.00	44-46	38-39
Pinnacle Entertainment (PNK)	0.00	22-24	19-20
Nu Skin Enterprises Inc. (NUS)	46.07	86-90	76-78
Micron Technology, Inc. (MU)	43.31	14.5-15.5	13-13.5
Lear Corp. (LEA)	0.00	69-71	66-67
Halliburton (HAL)	0.00	48.5-51	45.5-46
Evercore Partners (EVR)	0.00	47.5-49	44.5-45
Energen (EGN)	77.04	67-70	62-63
Infoblox Inc. (BLOX)	0.00	39-41	33-35
Aegerion Pharmaceuticals (AEGR)	0.00	90-94	84-85

The market has shifted into a news-driven environment; today the indexes popped higher as it appears any strike on Syria will be delayed, or possibly abandoned. But with many economic reports coming up that could affect interest rates (including the jobs report on Friday) and with Congress debating Syria, expect more gyrations ahead. Overall, our outlook is the same as the past two weeks—with many growth stocks acting well, you should hold your top performers and look to do a little buying on weakness. But with the indexes chopping around, you should also hold some cash and wait for a real green light before getting too aggressive.

This week’s list includes a few secondary-type names; there aren’t as many liquid leaders as has been the case in past weeks. But there are plenty with big potential. Our favorite is Hain Celestial (HAIN), a direct play on the organic food movement, whose stock just emerged from a year-long rest.

Stock Name	Price	Buy Range	Loss Limit
Zillow (Z)	76.64	92-97	78-80
Web.com (WWWW)	0.00	27-28.5	25-25.5
Sina Corp. (SINA)	0.00	76-80	68-69
Nationstar Mortgage (NSM)	0.00	48-51	45-46
Laredo Petroleum (LPI)	0.00	24-25.5	22.5-23
Jazz Pharmaceuticals (JAZZ)	0.00	85-87	79-80
Incyte Corporation (INCY)	76.98	33-34.5	29-30
HD Supply Holdings, Inc. (HDS)	0.00	22-23.5	20.5-21
The Hain Celestial Group, Inc. (HAIN)	0.00	78-80.5	73-74
Chesapeake Energy Corporation (CHK)	0.00	25-26	23.5-24

The broad market has bounced in recent days, which is good to see; we’re even seeing a much-overdue relief rally in the interest rate-sensitive sectors. But the real action remains among growth stocks; the vast majority of our recent recommendations are acting well, including a bunch that have pushed to new highs! We still don’t think the market is 100% in the clear; we’ll leave the Market Monitor where it is (just shy of bullish), so holding some cash and keeping your feet on the ground makes sense. But the action among leaders is encouraging.

This week’s list has a nice variety of names to choose from, but for our favorite, we’re going with an institutional growth stock leader—Netflix (NFLX) has come out of the public’s eye of late, but shares have surged to new highs as the firm’s business continues to rebound. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
Yandex (YNDX)	0.00	33-34.5	30-30.5
Yelp (YELP)	41.30	48-52	42-43
Stratasys (SSYS)	0.00	103-108	92-94
Polaris Industries (PII)	0.00	110-115	104-105
Oshkosh (OSK)	95.04	45-47	41-42
Netflix, Inc. (NFLX)	423.92	275-285	245-250
Melco Crown (MPEL)	0.00	26-27	24-24.5
Magna International Inc. (MGA)	0.00	78-81	73-74
Keurig Green Mountain (GMCR)	0.00	83-88	78-79
Cabot Oil & Gas (COG)	0.00	37.5-39	36-36.5

In the month since the broad market began to weaken, the losers have been interest-rate sensitive securities; investors clearly fear that rates will rise further. But who are the winners? Interestingly, there is no one strong sector resisting the decline. Rather, numerous strong stocks in a variety of industries are being supported by investors. But more and more, these stocks are failing to hit new highs, so the big picture is one of growing weakness overall, and this is reflected in the less bullish status of our Market Monitor. You can still make money in this market, but more than ever, skillful stock-picking, combined with proper entry timing, is critical. So we urge you to study numerous individual stocks carefully. Try to buy on normal pullbacks. And above all, keep losses small if a stock doesn’t do what you hired it to do.

Our Editor’s Choice today, Lions Gate Entertainment, is a lower-risk selection with a good long-term growth story, and a timely entry could work out very well.

Stock Name	Price	Buy Range	Loss Limit
Trulia (TRLA)	0.00	42-45	37-38
Sealed Air (SEE)	0.00	29-30	25-26
Questcor Pharmaceuticals (QCOR)	0.00	60-63	56-57
Pandora Media Inc. (P)	0.00	18-20	15-16
LightInTheBox Holding Co., Ltd. (LITB)	0.00	18-20	15-16
Lions Gate Entertainment Corp. (LGF)	0.00	32-33.5	28-29
Ctrip.com International Ltd. (CTRP)	34.94	43-45	39-40
Cornerstone OnDemand (CSOD)	51.01	49-51	45-46
Celldex Therapeutics (CLDX)	0.00	19-20	16-17
Baidu (BIDU)	0.00	130-135	118-120

We started to see the market shake and bake a bit last week, which isn’t unusual considering the heady run the indexes and dozens of growth stocks have had since the late-June low. Exactly what happens next is anyone’s guess; our feeling is simply that the next month will probably be more difficult than the last month, so you should expect a few potholes or sudden selloffs. But with the main trend still pointed up, we think higher prices are likely in the weeks and months ahead. Thus, while plunging into a bunch of stocks right now probably isn’t the best idea, we do think you should work to remain (or work toward becoming) heavily invested.

This week’s list has some old friends and a couple of new faces. There’s lots of strength to choose from, but our favorite is Michael Kors (KORS) a fashion house with ambitious growth plans.

Stock Name	Price	Buy Range	Loss Limit
Under Armour (UA)	0.00	69.5-71.5	64-65
Ocwen Financial (OCN)	0.00	49.5-52	45.5-46.5
LKQ Corp. (LKQ)	0.00	28.5-30.5	25-27
Michael Kors Holdings Limited (KORS)	73.22	69-72	63.5-64.5
Jazz Pharmaceuticals (JAZZ)	0.00	77-80	74-75
Harman International Industries, Inc. (HAR)	0.00	66-69	59-60
Facebook, Inc. (FB)	0.00	37.5-39.5	32-33
Cubist Pharmaceuticals (CBST)	0.00	59-62	52-54
Baidu (BIDU)	0.00	130-136	118-120
Activision Blizzard, Inc. (ATVI)	0.00	17-18	15.5-16

We haven’t seen this many growth stocks acting well at one time since at least late 2010, and probably more like 2007, which is very encouraging. That said, we are seeing some froth begin to appear—many investors are giddy with their recent gains, and a few smaller-cap, speculative names have gone vertical. Thus, be sure to keep your feet on the ground, and don’t be afraid to book some partial profits here or there. But, in general, the buyers are clearly in control, and the main trends of the market are up, so you should work to get (or remain) heavily invested.
This week’s list has a few of the aforementioned zoomers, but most of the stocks have very solid fundamentals and aren’t far from solid entry points. There are many we like, but our favorite is Concur Technologies (CNQR), one of the many younger Cloud-based software firms that are thriving.

Stock Name	Price	Buy Range	Loss Limit
Pioneer Natural Resources (PXD)	0.00	172-177	159-162
LinkedIn Corporation (LNKD)	0.00	228-236	205-208
Chart Industries (GTLS)	72.05	110-115	101-103
Gilead Sciences (GILD)	75.10	59-61	54-55.5
Canadian Solar (CSIQ)	0.00	14-15	11-12
Concur Technologies (CNQR)	0.00	97-100	88-90
Con-way (CNW)	0.00	43-45	41-42
Ciena (CIEN)	44.25	22-23	20-20.5
Athenahealth (ATHN)	0.00	107-112	93-95
Aegerion Pharmaceuticals (AEGR)	0.00	89-91	78-80

In most cases, the market acts in a way that surprises the majority, but during the past couple of weeks, stocks have actually behaved as we expected—the major indexes have calmed down to digest their huge post-June 24 run, while volatility among individual stocks has increased as earnings season produces all sorts of big moves up and down. Overall, the bulls remain in control, and while you have to watch your step during earnings season, we’re seeing some new leadership emerge, which is a good sign.

This week’s list includes a few recent earnings winners; powerful gaps up on a firm’s quarterly report usually lead to higher prices. Our favorite of the week is Facebook (FB), which had a coming out party last week after blowing away expectations. It’s extended, but we think you can start small here and look to build a position should the stock advance.

Stock Name	Price	Buy Range	Loss Limit
Yandex (YNDX)	0.00	30-31.5	27-28
TripAdvisor (TRIP)	55.14	70-73	62-64
Pharmacyclics (PCYC)	0.00	100-104	92-93
ManpowerGroup (MAN)	90.84	64.5-66	60-61
Illumina Inc. (ILMN)	289.74	79-82	72-73
Finisar (FNSR)	0.00	18-18.5	15.5-16.5
Facebook, Inc. (FB)	0.00	33.5-35.5	30-31
E*Trade Financial (ETFC)	0.00	13.5-14.5	12.5-13
Dana Holding (DAN)	0.00	20.5-21.5	18.5-19.5
Celgene (CELG)	0.00	139-143	127-129

The market and most stocks remain in a solid uptrend, though earnings are beginning to have the anticipated push-pull effect on the market, with lots of gaps up and down to start the day. We think increased volatility is nearly a sure bet going forward, especially after such a great rebound. In the short-term, then, make sure you have a plan of how you want to deal with earnings season (we include any upcoming earnings dates of our recommendations in today’s issue), and be prepared for lots of action in both directions. Long-term, though, the path of least resistance remains up, so we favor using normal retreats as buying opportunities.

This week’s list is one of the more growth-oriented that we’ve seen this year; just about every stock has a real, sustainable growth story with solid numbers. Our favorite of the week is Proto Labs (PRLB), which has set up a nice risk-reward entry here after tightening up for a few weeks.

Stock Name	Price	Buy Range	Loss Limit
Zillow (Z)	76.64	67-69	59-60
Vipshop Holdings (VIPS)	14.25	34-36	30-31
Trulia (TRLA)	0.00	35.5-37	31-32
Santarus (SNTS)	0.00	23.5-24.5	20-21
Spirit Airlines (SAVE)	57.03	33-35	30-31
Proto Labs (PRLB)	0.00	63-65	56-58
Nu Skin Enterprises Inc. (NUS)	46.07	78-80	70-71
Nationstar Mortgage (NSM)	0.00	44-46	40.5-41.5
Generac Holdings (GNRC)	86.60	39.5-41	36-37
Ambarella (AMBA)	52.79	17.5-19	16-16.5

What a difference a few weeks make! In late June the market was on its knees as fears of Fed tapering took hold. Today, though, those fears have given way to optimism, with all major indexes and hundreds of stocks surging to new highs. Yes, earnings season is getting underway, which always adds risk to the equation; we’re sure we’ll see a few potholes in the weeks ahead as some firms miss estimates. But the evidence has turned clearly bullish, and the path of least resistance is up. Thus, you should be working to get heavily invested in some of the strongest stocks in the market.

This week’s list has many familiar faces, as well as a broad representation among sectors. Our favorite of the week is Santarus (SNTS), which has enjoyed a huge run in recent months, but sales and earnings growth are huge, and the stock has exploded higher on big volume. Pullbacks are possible, but higher prices are likely over time.

Stock Name	Price	Buy Range	Loss Limit
YY Inc. (YY)	0.00	33-35	28-29
Yelp (YELP)	41.30	36-38	32-33
The ExOne Company (XONE)	0.00	60-62	53-54
Tesla, Inc. (TSLA)	818.87	120-130	100-108
Santarus (SNTS)	0.00	24-25	20-21
Nexstar Media Group (NXST)	105.68	37-39	30-31
Krispy Kreme Doughnuts (KKD)	0.00	19-20	16-17
Delphi Automotive (DLPH)	0.00	52-54	50-51
Conn’s Inc. (CONN)	0.00	55-57.5	49-50
Bloomin’ Brands (BLMN)	0.00	24.5-25.5	22.5-23

Last week’s action was encouraging, from both the major indexes (most of which have pushed back above their 50-day lines) and growth stocks, which are definitely leading the way higher. With rising interest rates still a worry and earnings season coming up, it’s likely that volatility will remain elevated; you shouldn’t throw money at the market willy-nilly. But we’re very encouraged by the straight-up, smoke-up-a-chimney type of action by the market and many stocks since the panic low in late-June. Our Market Monitor remains in the bullish camp.

This week’s list is a bit more diverse than we’ve seen of late, with many quality prospects to consider. Our favorite of the week is Pandora (P), which is a very jumpy stock we were knocked out of a few weeks ago, but its recent, powerful action is intriguing. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
Thor Industries (THO)	104.76	48-50	41-42
Qihoo 360 (QIHU)	0.00	47-49	41-42
Pandora Media Inc. (P)	0.00	19-20	16-16.5
InvenSense (INVN)	0.00	14.5-15.5	13-14
Guidewire (GWRE)	90.60	42-44	37-38
Chart Industries (GTLS)	72.05	96-98	90-91
Ford Motor Co. (F)	0.00	15.5-16.5	13-14
Electronic Arts (EA)	0.00	22.5-24	21-21.5
DreamWorks (DWA)	0.00	24-25.5	21-22.5
Cree, Inc. (CREE)	67.96	65-68	60-61

The market has followed through on last week’s rebound rally and we’re seeing an increasing number of strong growth stocks with good setups. The big news is that the rally has lifted many of the indexes we follow above their 25- and 50-day moving averages, giving us a green light for new buying. We don’t advise jumping in with both feet—new buy signals do not guarantee a continued advance—but you should be taking a serious inventory of your watch list (and the stocks in this week’s issue) to select a few favorites for buying.
This week’s list includes several bigger names and a few recent IPOs, which indicates good breadth for the rally. Our favorite is SunPower (SPWR), which is making the turnaround in the solar industry look like a sound growth proposition.

Stock Name	Price	Buy Range	Loss Limit
SunPower (SPWR)	12.26	19.5-22	17-18
Splunk (SPLK)	207.67	45-47	41-42
Proto Labs (PRLB)	0.00	63-65	55-56
The Priceline Group Inc. (PCLN)	0.00	810-840	779-780
Illumina Inc. (ILMN)	289.74	72-74	67-68
Ciena (CIEN)	44.25	19-20	17.5-18
Bloomin’ Brands (BLMN)	0.00	24-25	22.5-23
Boeing (BA)	432.22	99-102	94-95
American Axle (AXL)	0.00	17.5-18.5	16-16.5
Actavis (ACT)	0.00	123-127	108-110

Last week, our issue was titled “Decision Time,” and after the Federal Reserve’s disappointing report, the market made the decision to go down with force—not only have the major indexes broken their intermediate-term trend lines, but tons of stocks have been nailed as the selling pressures intensify. Yes, there are still many decent-looking names out there, but the market is the elephant in the room at this point; it’s best to hold plenty of cash and do little new buying until stocks find their footing.

The good news from a stock picker’s standpoint is that it’s easiest to spot strength in a weak market; if a stock is holding up well in this environment, it deserves some extra attention. This week’s list has many stocks that fill that bill; our favorite is Infoblox (BLOX), a young, rapidly-growing networking firm. Just be sure to keep any positions small if you decide to buy.

Stock Name	Price	Buy Range	Loss Limit
Yelp (YELP)	41.30	28-30	26-27
The ExOne Company (XONE)	0.00	48-50	42-43
Tesla, Inc. (TSLA)	818.87	93-103	85-88
SodaStream (SODA)	142.91	65-69	60-61
Charles Schwab (SCHW)	0.00	19.5-20.5	18-18.5
RH Inc. (RH)	252.93	67-71	60-62
Colfax (CFX)	0.00	48-50	46-47
Infoblox Inc. (BLOX)	0.00	27-28	23-24
ANGI Homeservices Inc. (ANGI)	14.81	25-26	23-24
ACADIA Pharmaceuticals (ACAD)	47.84	16-17.5	13.5-14

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.

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.