Energy stocks have been by far the best-performing market sector over the last couple of years. They went from worst to first in dramatic fashion. And the good times may be just beginning.

The industry has had very low capital spending and expansion in recent years. Crude oil inventories have fallen below the five-year average and are likely headed far lower. OPEC has pledged dramatic production cuts to push prices higher. There is also a high degree of geopolitical risk. In fact, Goldman Sachs analysts are forecasting oil prices to get back to $95 per barrel before the end of this year.

The fundamentals are in place for prices to average a lot higher than they are now over the next few years. And that will lift stock prices. Stocks are also cheap, have among the best dividend yields on the market, and tend to perform well during times of inflation.

This issue highlights one of the highest-growth energy companies on the market. It has the ability to grow production by double digits for many years to come and at very low cost.

Today, I’m recommending a “buy when there’s blood in the streets” type of stock:

Key points:

• The company owns valuable real estate in Manhattan and Brooklyn.
• The underlying asset value implies 7x upside to the stock’s current price.
• Insiders have been buying aggressively over the past year.

All the details are inside this month’s Issue. Enjoy!

Despite a concerning start to the week for the bulls, Friday’s big rally provided some hope that the market could get back in gear. By week’s end the S&P 500 had lost 0.8%, the Dow had fallen 1.24%, and the Nasdaq had gained 0.07%.

We don’t want to write the same thing week after week, but the story remains mostly the same as it has for the past two months: There are definitely some positives out there, including a good number of setups, some positive earnings reactions and a resilient set of major indexes, especially given the banking worries—but the broad market is mostly iffy while we continue to see repeated air pockets and selling on strength. We still think there’s lots of bullish dry tinder that could spark if things go right, but until it happens, we think it’s best to remain cautious.

This week’s list sports more than a few recent earnings winners, as well as a few tight setups. Our Top Pick is a growth name that’s getting costs under control—combined with its cookie-cutter story, that could produce reliable bottom-line growth soon. Try to buy on dips.

Stocks continue to chug along in the same range they’ve largely been in since the end of March. We’ll see if this week’s inflation reports (CPI on Wednesday, PPI on Thursday) move the needle in either direction. In the meantime, one sector that is finally showing signs of life after two years of being beaten to a pulp is cannabis. And so today, we add one of the top cannabis stocks recommended by Cabot Cannabis Investor Chief Analyst Michael Brush. It’s a familiar name to even intermediate-term Stock of the Week readers – and it was up 25% last week!

Details inside.

Our focus this week will be on PayPal (PYPL) and Disney (DIS).

We got back on track this past week with a small winning trade. In total we’ve placed five trades this earnings season, with a 60% win ratio and a cumulative loss of -16.1%. With a few weeks left on the earnings calendar, we have several more opportunities to bring our returns back to breakeven for this cycle or possibly into positive territory.

Our overall return is 28.9% - certainly nothing to write home about, but also no complaints as we thankfully sit in positive territory during what has been an incredibly challenging market for all participants over the past year.

We locked in a small 6.8% profit in our SPY iron condor last week and added another bear call spread, in SPY, to the mix later in the week. Our total cumulative return stands at 124.52% with a win ratio of 87.1% (27/31 winning trades) since we started Quant Trader just under one year ago.

We have two positions on at the moment, both due to expire at the June 16 expiration date. Fortunately, both are hovering around the same price we sold them for, so all is well at the moment. And given we are leaning bearish in both positions, a move lower will obviously immediately help both positions and possibly lead to some early profit taking.

Not much has changed since last week, other than that we are seven days closer to the May 19, 2023, expiration cycle coming to a close. Thankfully, our three remaining May positions all remain in good standing.

We locked in profits in both PFE and KO and immediately sold more premium just over a week ago and I will most likely do the same in our May 19, 2023 positions this week which should bring our total return to around 75%.

Despite a concerning start to the week for the bulls, Friday’s big rally provided some hope that the market could get back in gear. By week’s end the S&P 500 had lost 0.8%, the Dow had fallen 1.24%, and the Nasdaq had gained 0.07%.

Despite a concerning start to the week for the bulls, Friday’s big rally provided some hope that the market could get back in gear. By week’s end the S&P 500 had lost 0.8%, the Dow had fallen 1.24%, and the Nasdaq had gained 0.07%.

The market remains in a rough spot, with a hawkish Fed that continues to raise rates into what’s become a rolling bank crisis, with some big names going under and others walking the plank. Far more important to us than the news is the market’s reaction to the news--and it remains mixed when it comes to the indexes (intermediate-term trend neutral), but growth stocks remain iffy at best, with many good-looking setups falling apart on earnings of late, and with relatively few really powering ahead. All of this can change in a hurry, but until it does, we continue to think growth investors should remain generally cautious and flexible as we wait for a more certain environment that will entice big investors to pile in.

In tonight’s issue, we have no changes to the Model Portfolio (though one small position is on a tight leash), holding north of 60% in cash and working on building our watch list. Elsewhere tonight, we write about the market’s very narrow nature, highlight the housing group (which has a history of trending even in bad markets) and have re-added a few names back to our watch list after some old favorites have popped on earnings.

The Federal Reserve yesterday raised the target for its benchmark interest rate by 0.25% to a new range of 5%-5.25%, the highest since September 2007. This will impact the value and stability of the U.S. dollar and stock markets in several ways.

During the only stable dollar eras of the last century, annual GDP growth averaged 4.9% from 1922-29, 4% from 1948-71, and 3.7% from 1983-2000.

In comparison, over the last two decades, a more volatile dollar saw average growth of only 1.9%. Had the dollar remained stable since 2000, with a steady 3.7% growth, the economy would be nearly 50% greater than it is today, and we probably would have avoided all these financial crises along the way.

It’s been another week of choppy trading action as more earnings reports pour in. We received a solid earnings report from Silvergate Capital (SI), and that stock has perked up.

Markets searching for direction received a boost yesterday as Tesla left earnings estimates in the dust. Quarterly profit was $3.3 billion on revenue of $18.8 billion. Despite the shutdown in China, Elon Musk said the company likely would produce more than 1.5 million vehicles in 2022, up 60% over last year.

Earnings are saving this floundering market. The market was turning south again after a big rebound. But a promising earnings season stopped the slide.

It’s still early. But it appears that earnings will once again exceed expectations. That’s big. Not only are earnings what it’s all about. But it reminds investors that this economy is still strong, and much stronger than the current headlines indicate.

This week, I’ve received several questions about Liberated Syndication (LSYN), so I want to bring everyone up to speed in my intro.

The stock stopped trading on April 15th (the 14th was the last day of trading) because the SEC revoked the company registration.



This sounds like horrible news, but I think it’s actually the opposite.

Earnings might be saving this market. That’s the good news. The bad news is that the market needs saving, and for good reasons.

So far, with just about 10% of S&P 500 companies reporting, earnings have been better than expected, as usual. It’s a tough quarter considering inflation, the war, and covid in China. But companies have been resilient so far. And market performance has been upgraded from falling to floundering.

Earnings update from a company that recently reported and comments on other recommended stocks. And, an on-the-ground view of globalization.

As the broad market continues to show weakness, concerns about rising interest rates and inflation are bubbling to the top of many ETF investors’ list of concerns.

In the first quarter of 2022, commodity ETFs saw above-average inflows for the first time in many years.

It’s not often that virtually all metals—precious and base—experience a synchronized boom, but thankfully for investors, this is one of those rare events. Due to the inherent cyclicality of the sector, however, we’re forced to pose the question: How long can the metals defy gravity before the inevitable mean reversion sets in?

This week we review earnings from one of our recommended companies and provide updates on three other recommended companies. We share some thoughts on why what produced the remarkable bull market over the past decade and longer may not lead to investing success over the next 5-8 years.

The world is still a mess with crosscurrents galore. But we will soon have something somewhat concrete to focus our attention on. Yes, I’m talking about first-quarter earnings season.

Note: We’re blasting out this week’s update a day early given the Good Friday holiday. We hope you have a great long weekend.

It’s earnings season.

This should be an interesting one. Earnings have saved and rejuvenated the bull market throughout the pandemic recovery. Can this earnings season save the current floundering market?



Stocks are up today because of optimism from the few companies that have reported so far. The expectations are for just 4.5% earnings growth on average for S&P 500 companies. Of course, earnings almost always exceed expectations. But this will still be the slowest growth since the fourth quarter of 2020 as there are much tougher comparisons to the opened-up economy a year ago.

Suffice to say it’s been a tough week. As we head into a weekend that can’t come quickly enough, the main market indices are down over 2.5% and many, many stocks are 20%, 30% or 40% off their highs (some are better, some are worse).

This medical device company—despite COVID-19 headwinds—is expected to grow by more than 100% annually over the next five years.

Shares of Fiverr (FVRR) continue to slide, despite a beat-and-raise Q3 report and the threat of Omicron, which in theory should be good for some work-from-home (WFH) stocks.

Wolfspeed (WOLF) closed at 104.60 Thursday, below our recommended stop-loss level of 107. We recommend selling today.

This semiconductor company beat analysts’ earnings estimates by $0.13 last quarter.

More bad news on the virus front caused a huge reversal yesterday, with the Dow down 462 points, the Nasdaq off another 284 and growth stocks faring even worse.

Array Technologies (ARRY) triggered our sell-stop with its close at 17.65 Wednesday, and we recommend selling today.

I just wanted to drop a quick note about what we’re seeing in our portfolio; other than that the high-level action is mostly in line with the broad market (i.e., across the board weak).

The broad U.S. equity market experienced another “volatility event” this week, which was blamed on Covid variant worries and concerns that the Fed might begin tapering sooner than expected.

I just wanted to drop a quick note about what we’re seeing in our portfolio; other than that the high-level action is mostly in line with the broad market (i.e., across the board weak).

Coverage of the shares of this tech company were recently initiated at RBC Capital with an ‘Outperform’ rating.

As we enter the final month of the year, market volatility has increased, and with it, investor anxiety. But the main trend of the market remains up, so I remain confident that intelligent investors who follow proven investing disciples can make money—which brings me to an email I received from a reader just today.

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.