Issues
The market took a hit last week, as Washington’s ineptitude continued to grab the headlines and cause investors to raise cash and book some profits. The action wasn’t pretty, for sure, but we can’t say it’s changed the big picture—the rally since the mid-November lows is still intact, and many of the stocks and sectors that had been performing well took last week’s dip in stride. Another day or two of big declines would change our outlook, but right here, you should continue to “lean bullish,” holding your better performers and putting some money to work as opportunities arise. You should, however, also hold a decent cash position until we see more power and decisiveness from the market.
This week’s list is almost evenly split between great growth companies and turnarounds, including a couple of well-known names that are looking good. We like many of the charts, but we’ll go with Qihoo 360 (QIHU) as our favorite of the week. The stock is a bucking bronco, but it has great growth and a big story.
This week’s list is almost evenly split between great growth companies and turnarounds, including a couple of well-known names that are looking good. We like many of the charts, but we’ll go with Qihoo 360 (QIHU) as our favorite of the week. The stock is a bucking bronco, but it has great growth and a big story.
| Stock Name | Price | ||
|---|---|---|---|
| Tenet Healthcare (THC) | 0.00 | ||
| Terex (TEX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Mohawk Industries (MHK) | 0.00 | ||
| General Motors Company (GM) | 0.00 | ||
| FLSR (FLSR) | 0.00 | ||
| Equinix, Inc. (EQIX) | 547.73 | ||
| 3D Systems (DDD) | 0.00 | ||
| Bank of America (BAC) | 0.00 |
It’s not uncommon for nascent market rallies to feature a lot of crosscurrents, and we’re seeing just that during the past few weeks—the action has been generally constructive, but the environment remains news-driven with lots of rotation among stocks and sectors on a day-to-day basis. That said, because of the resilience of the major indexes and the strength (or set-ups) seen from leading stocks, we think you should continue to “lean bullish,” which means doing some buying as opportunities arise, but not pushing the accelerator to the floor. If this rally is the real deal, we expect more and more stocks from a variety of sectors to begin lifting off from multi-week launching pads. It’s something to watch for.
This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.
This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.
| Stock Name | Price | ||
|---|---|---|---|
| Trimble Navigation (TRMB) | 0.00 | ||
| PVH Corp. (PVH) | 0.00 | ||
| Melco Crown (MPEL) | 0.00 | ||
| Gulfport Energy (GPOR) | 0.00 | ||
| Eastman Chemical (EMN) | 0.00 | ||
| Computer Sciences (CSC) | 0.00 | ||
| Salesforce.com (CRM) | 0.00 | ||
| Cree, Inc. (CREE) | 67.96 | ||
| Abercrombie & Fitch (ANF) | 15.37 | ||
| Aecom Technology (ACM) | 0.00 |
The market’s rally since its mid-November lows has proven durable enough to turn our intermediate-term indicators back into a bullish mode. (Our Market Monitor, shown to the left, has followed suit.) Granted, the buyers aren’t exactly flexing their muscle here, with plenty of choppy action as investors await word on the Fiscal Cliff. But there’s enough evidence that the sellers have left the building, seen in both the major indexes, which have refused to give back any gains of late, and in leading stocks, more and more of which are setting up. You shouldn’t head for the deep end yet, but putting some sidelined cash to work is advised.
This week’s list is a hodgepodge of stocks and sectors, with a handful of turnaround-type stories thrown in. Our favorite of the week is MasTec (MTZ), an off-the-radar name in the construction business. Growth is picking up, and the stock is acting excellently.
This week’s list is a hodgepodge of stocks and sectors, with a handful of turnaround-type stories thrown in. Our favorite of the week is MasTec (MTZ), an off-the-radar name in the construction business. Growth is picking up, and the stock is acting excellently.
| Stock Name | Price | ||
|---|---|---|---|
| United Rentals, Inc. (URI) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| MasTec, Inc. (MTZ) | 66.65 | ||
| Marathon Petroleum Corporation (MPC) | 0.00 | ||
| Louisiana-Pacific (LPX) | 0.00 | ||
| Lowe’s Companies (LOW) | 98.15 | ||
| First Solar (FSLR) | 83.74 | ||
| Canadian Pacific Railway (CP) | 0.00 | ||
| ASML Holding (ASML) | 350.01 | ||
| Amazon.com (AMZN) | 2.00 |
The market’s rally continues to impress, with the major indexes building on their gains and more individual stocks acting well. At this time, our indicators are this close to turning positive; we’ll officially leave our Market Monitor in neutral territory, but if you see a good opportunity, it’s OK to take it. We are growing more encouraged that the market’s two-month correction is over, but we need to see more power among potential leaders; it’s really the one missing ingredient in the market’s nascent rally.
This week’s list is a mixed bag of growth stories and sectors, but there are a few that have us interested. Our favorite of the week is a well-known company that most investors now dislike. It’s Facebook (FB), the social media giant, whose stock is one of the few that has shown great power during the past three weeks. Try to buy on weakness.
This week’s list is a mixed bag of growth stories and sectors, but there are a few that have us interested. Our favorite of the week is a well-known company that most investors now dislike. It’s Facebook (FB), the social media giant, whose stock is one of the few that has shown great power during the past three weeks. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| Ulta Beauty (ULTA) | 331.95 | ||
| Stratasys (SSYS) | 0.00 | ||
| Martin Marietta Materials (MLM) | 261.52 | ||
| Gulfport Energy (GPOR) | 0.00 | ||
| GameStop (GME) | 0.00 | ||
| Facebook, Inc. (FB) | 0.00 | ||
| eBay Inc. (EBAY) | 0.00 | ||
| Dillard’s (DDS) | 0.00 | ||
| Colfax (CFX) | 0.00 | ||
| Abercrombie & Fitch (ANF) | 15.37 |
After a straight-down move following the election, the market rallied smartly during Thanksgiving week on light volume. Clearly, the move was good to see, and there are a decent number of good-looking set-ups out there. However, by our measures, the market’s trends remain down, and we think the rubber will meet the road from this point forward—if the correction is over, we expect more and more stocks to shape up, and for the major indexes to build on their gains. If not, we expect the sellers to take advantage of these prices during the next few days. For now, remain cautious, and we’ll let you know if we get any new buy signals.
In the meantime, it’s imperative to be up on the best-acting stocks and sectors in the market. This week’s list has many names that are off most investors’ radar screens, which we like. Our favorite of the week is Salesforce.com (CRM), a big firm that looks ready to get going after a two-year pause.
In the meantime, it’s imperative to be up on the best-acting stocks and sectors in the market. This week’s list has many names that are off most investors’ radar screens, which we like. Our favorite of the week is Salesforce.com (CRM), a big firm that looks ready to get going after a two-year pause.
| Stock Name | Price | ||
|---|---|---|---|
| Tenet Healthcare (THC) | 0.00 | ||
| Regeneron Pharmaceuticals (REGN) | 512.96 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Packaging Corp (PKG) | 0.00 | ||
| HollyFrontier Corporation (HFC) | 0.00 | ||
| HDFC Bank Limited (HDB) | 0.00 | ||
| Gilead Sciences (GILD) | 75.10 | ||
| Eaton Vance Corp. (EV) | 0.00 | ||
| Salesforce.com (CRM) | 0.00 | ||
| Alaska Air Group (ALK) | 0.00 |
The market remains under pressure, though the sellers have eased up a bit during the past couple of trading days; it’s possible that, after a sharp plunge at the end of last week we could see a bounce or countertrend rally develop. That said, this remains a news-driven environment, especially as our leaders in Washington begin their posturing to deal with the Fiscal Cliff. Overall, the intermediate-term trend remains down, and while there are some stocks and sectors resisting the decline, it’s best to stick with your generally defensive stance, limiting new buying to small amounts, taking profits (or partial profits) quickly when you get them and holding a good amount of cash on the sideline.
This week’s list is a hodgepodge of names that are doing well, usually because of recent catalysts or great reactions to quarterly results. Our favorite is a lower-priced name that looks like a special situation—Nam Tai Electronics (NTE) is showing exceptional strength, has huge earnings and sales, and even a big dividend, too. It’s a hot potato, but a small position on weakness could work very well.
This week’s list is a hodgepodge of names that are doing well, usually because of recent catalysts or great reactions to quarterly results. Our favorite is a lower-priced name that looks like a special situation—Nam Tai Electronics (NTE) is showing exceptional strength, has huge earnings and sales, and even a big dividend, too. It’s a hot potato, but a small position on weakness could work very well.
| Stock Name | Price | ||
|---|---|---|---|
| AMC Networks (AMCX) | 0.00 | ||
| BE Aerospace (BEAV) | 0.00 | ||
| BioMarin Pharmaceutical (BMRN) | 0.00 | ||
| Computer Sciences (CSC) | 0.00 | ||
| Copa Holdings (CPA) | 0.00 | ||
| Lions Gate Entertainment Corp. (LGF) | 0.00 | ||
| Mohawk Industries (MHK) | 0.00 | ||
| Nam Tai Electronics (NTE) | 0.00 | ||
| Quanta Services (PWR) | 91.45 | ||
| Thor Industries (THO) | 104.76 |
The market environment hasn’t changed much during the past couple of weeks; the intermediate-term trend of the market is down, and few stocks are managing to make meaningful progress on the upside. That said, it’s also not a disaster out there; some growth stocks have been hammered, but many groups are holding up well and most indexes are just a few percent off their peaks. Of course, the U.S. elections are tomorrow, and it’s possible the results could change the market’s course. But right now, we’ll keep our Market Monitor in neutral territory as the sellers remain in control.
This week’s list is a bit of a hodgepodge of stocks and sectors, but most of the names have recently reacted well to earnings, which is always a positive clue. Our favorite of the week is Whirlpool (WHR), a turnaround stock that is showing exceptional strength. It’s not changing the world, but the numbers look outstanding. Try to buy on weakness.
This week’s list is a bit of a hodgepodge of stocks and sectors, but most of the names have recently reacted well to earnings, which is always a positive clue. Our favorite of the week is Whirlpool (WHR), a turnaround stock that is showing exceptional strength. It’s not changing the world, but the numbers look outstanding. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| WPI (WPI) | 0.00 | ||
| Whirlpool (WHR) | 0.00 | ||
| Affiliated Managers Group, Inc. (AMG) | 0.00 | ||
| CommVault (CVLT) | 0.00 | ||
| Eastman Chemical (EMN) | 0.00 | ||
| Expedia Group (EXPE) | 0.00 | ||
| GameStop (GME) | 0.00 | ||
| Louisiana-Pacific (LPX) | 0.00 | ||
| NXP Semiconductors (NXPI) | 0.00 | ||
| PVH Corp. (PVH) | 0.00 |
Hurricane Sandy has the market closed today and possibly tomorrow, but we don’t think that’s going to affect the market’s path all that much. It’s not 2008 out there, but there’s no question the intermediate-term trend is still down, and that earnings season has been generally rough thus far. We flipped our Market Monitor into neutral territory a couple of weeks ago and it remains there today; it’s better to focus on capital preservation these days than capital appreciation, though some new buying here or there is fine—just be sure to keep your positions smaller than normal, and to keep your stops in place.
The good news is that we have seen a decent amount of big-volume support appear in many stocks during earnings, including more than a few commodity and turnaround situations. Our favorite of the week is Packaging Corp. (PKG), a firm with a supposedly boring story ... but with exciting numbers and a beautiful chart.
The good news is that we have seen a decent amount of big-volume support appear in many stocks during earnings, including more than a few commodity and turnaround situations. Our favorite of the week is Packaging Corp. (PKG), a firm with a supposedly boring story ... but with exciting numbers and a beautiful chart.
| Stock Name | Price | ||
|---|---|---|---|
| 3D Systems (DDD) | 0.00 | ||
| ARM Holdings (ARMH) | 0.00 | ||
| Cabot Oil & Gas (COG) | 0.00 | ||
| HDFC Bank Limited (HDB) | 0.00 | ||
| Jazz Pharmaceuticals (JAZZ) | 0.00 | ||
| Melco Crown (MPEL) | 0.00 | ||
| Michael Kors Holdings Limited (KORS) | 73.22 | ||
| Packaging Corp (PKG) | 0.00 | ||
| Royal Caribbean Cruises (RCL) | 0.00 | ||
| United Rentals, Inc. (URI) | 0.00 |
Markets coughed up a hairball at the end of last week and weren’t all that happy today. Defensive stocks had a better time of it, but many growth issues came under heavy pressure. A few high-profile issues (like Google GOOG) got taken to the cleaners after poorly received earnings reports. It’s too early to conclude that markets are in for a big correction, but the action is negative enough to warrant taking a slightly more defensive posture. You should tighten up the leash on your stocks, maybe be a little quicker to take partial profits or cut losers off if their charts deteriorate. Don’t go in for wholesale selling, but work to protect your portfolio.
This week has an interesting list of metals, large-caps and retail, but the Editor’s Choice is Citigroup (C), a global banking giant that’s making a slow comeback from a massive correction when the housing bubble burst. It’s a good value for a high-quality stock that’s appealing to institutional investors.
This week has an interesting list of metals, large-caps and retail, but the Editor’s Choice is Citigroup (C), a global banking giant that’s making a slow comeback from a massive correction when the housing bubble burst. It’s a good value for a high-quality stock that’s appealing to institutional investors.
| Stock Name | Price | ||
|---|---|---|---|
| Silver Wheaton (SLW) | 0.00 | ||
| Weyerhaeuser (WY) | 0.00 | ||
| Chico’s FAS (CHS) | 0.00 | ||
| Citigroup Inc. (C) | 0.00 | ||
| Coeur Mining (CDE) | 0.00 | ||
| Domino’s Pizza (DPZ) | 339.47 | ||
| LyondellBasell Industries NV (LYB) | 0.00 | ||
| Ocwen Financial (OCN) | 0.00 | ||
| Oshkosh (OSK) | 95.04 | ||
| Polaris Industries (PII) | 0.00 |
The market and many stocks had a bad last week, no doubt about it—instead of slowly fading, the selling pressures have increased of late as earnings season begins in earnest. We can’t say we’re seeing a rash of breakdowns, but enough selling has occurred that we’re moving our Market Monitor into the neutral camp. A shift back in a week or two is possible if earnings season unfolds bullishly, but for now, we recommend limiting your new buying to smaller positions (maybe half or two-thirds of what you’d usually buy) and consider some names that could trend on their own (like precious metals names, for instance). You should, however, still try to hold onto shares of your most resilient performers, giving them a chance to re-emerge.
This week’s list has a few tempting growth stocks, as well as some turnaround plays that are doing well. But we’ll stick with the precious metals group, which has consolidated nicely after bolting higher last month. Allied Nevada Gold (ANV) is one of many that looks like it wants to head higher, bolstered by the price of gold and higher output.
This week’s list has a few tempting growth stocks, as well as some turnaround plays that are doing well. But we’ll stick with the precious metals group, which has consolidated nicely after bolting higher last month. Allied Nevada Gold (ANV) is one of many that looks like it wants to head higher, bolstered by the price of gold and higher output.
| Stock Name | Price | ||
|---|---|---|---|
| ANV (ANV) | 0.00 | ||
| AOL, Inc. (AOL) | 0.00 | ||
| Barclays (BCS) | 0.00 | ||
| CTRX (CTRX) | 0.00 | ||
| DVA (DVA) | 0.00 | ||
| Eagle Materials Inc. (EXP) | 0.00 | ||
| AG (AG) | 0.00 | ||
| Google Inc. (GOOG) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Royal Caribbean Cruises (RCL) | 0.00 |
The market bounced back in the first few days of last week, but Friday’s negative reversal, combined with today’s downmove, makes it clear that there are still sellers lurking out there. Our thoughts remain unchanged—on a near-term basis, expect more choppiness and hesitation; taking some profits on strength and holding some cash makes sense as we head into earnings season. That said, we can’t conclude the intermediate-term trend has turned down, either for the market or for most stocks; thus, while you should dump your losers and laggards, we recommend holding on to most of your best performers.
This week’s list reflects the recent environment—most of the names are either a bit thinly traded or have the ability to trade outside the market’s influence (housing, precious metals, etc.). Our favorite of the week is Fusion-io (FIO), a relatively new technology firm that is growing rapidly and has been acting very well over the past few months.
This week’s list reflects the recent environment—most of the names are either a bit thinly traded or have the ability to trade outside the market’s influence (housing, precious metals, etc.). Our favorite of the week is Fusion-io (FIO), a relatively new technology firm that is growing rapidly and has been acting very well over the past few months.
| Stock Name | Price | ||
|---|---|---|---|
| Accenture (ACN) | 0.00 | ||
| Align Technology (ALGN) | 316.20 | ||
| CLGX (CLGX) | 0.00 | ||
| Cosan Limited (CZZ) | 0.00 | ||
| Fusion-io (FIO) | 0.00 | ||
| NetSuite, Inc. (N) | 0.00 | ||
| ONYX Pharmaceuticals (ONXX) | 0.00 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Whirlpool (WHR) | 0.00 | ||
| AUY (AUY) | 0.00 |
Our Market Monitor has been in the bullish zone since mid-August, and it remains there today—the intermediate-term trends of all major indexes and the vast majority of leading stocks are still bullish. That said, in the short-term, the market remains choppy; distribution was clearly seen last week, and with earnings season beginning in a couple of weeks, it makes sense that investors will hold their cards close to their vests. Thus, while we wouldn’t push the accelerator to the floor, our overall advice isn’t much changed: Hold your best performers, consider taking partial profits in some extended stocks and look to use normal weakness as a chance to buy.
Encouragingly, this week’s list has a surprising number of solid-looking set-ups and names that have actually come to life in recent days. Our favorite of the week is CF Industries (CF), the huge fertilizer maker that is trading well and has huge earnings power in this era of high crop prices.
Encouragingly, this week’s list has a surprising number of solid-looking set-ups and names that have actually come to life in recent days. Our favorite of the week is CF Industries (CF), the huge fertilizer maker that is trading well and has huge earnings power in this era of high crop prices.
| Stock Name | Price | ||
|---|---|---|---|
| CF Industries (CF) | 45.23 | ||
| CommVault (CVLT) | 0.00 | ||
| Expedia Group (EXPE) | 0.00 | ||
| Five Below (FIVE) | 134.58 | ||
| Gilead Sciences (GILD) | 75.10 | ||
| Marathon Petroleum Corporation (MPC) | 0.00 | ||
| Packaging Corp (PKG) | 0.00 | ||
| Regeneron Pharmaceuticals (REGN) | 512.96 | ||
| Splunk (SPLK) | 207.67 | ||
| Williams-Sonoma (WSM) | 64.96 |
Updates
WHAT TO DO NOW: It’s not 2008 out there, but the market environment remains very challenging, especially for growth, where most indexes, funds and stocks are struggling. That said, we have started to see some growth names emerge on the upside, and our watch list is growing—if we can see more than a day or two of strength, we’d like to put some money to work. But until then, we’re content to stay close to shore and patiently wait for growth stocks to get moving. In the Model Portfolio, we’re placing Axsome Therapeutics (AXSM) on Hold tonight; our cash position is still just above 50%.
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.
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.
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.
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%.
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%.
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.
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.
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.
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%).
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%).
Alerts
I’m adding E*Trade Financial (ETFC) to the Growth Portfolio today.
Today I’m adding Axiall Corp. (AXLL) and Boise Cascade (BCC) to the Buy Low Opportunities Portfolio, and Abercrombie & Fitch Co. (ANF) to the Growth & Income Portfolio.
I will sell BK from the Buy Low Opportunities Portfolio today, representing an approximate 11% total return in 31 days
Portfolios
Strategy
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.