Maybe, just maybe, last week was the start of a fourth quarter market run, as the S&P 500 gained 4.75%, the Dow rose 4.9%, and the Nasdaq added 5.22%.

While gold remains under pressure from a strong dollar, producers of industrial metals like copper and steel are beginning to show signs of perking up. Booming demand from alternate energy applications is the big driver here.

Elsewhere, the global titanium supply crunch continues with no immediate relief in sight.

In the trading portfolio, two new positions are recommended, including a major steel producer and a titanium market player.

Stocks were up for a second straight week, which might as well be a full-on rally in 2022 terms. At the very least, it’s a good time to add a beaten-down growth stock with immense potential – in a sector that has brought us our biggest winner (by far) to date. It’s a stock that was recently recommended by Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.

It’s going to be a short report this week with our monthly call last week and the October expiration cycle finally behind us. We covered a ton of information in our call so please, if you have the chance, take a listen when it’s convenient for you.

We locked in a few more profits last week and will be doing the same this week, this time in PFE.

If you didn’t get a chance to attend last week’s subscriber-only event you can access the recording of the event here. It will be well worth your listen as we covered the ins and outs of our AXP trade and offered a detailed look at a few potential upcoming trades.

We locked in another profitable trade late last week, this time in American Express (AXP). I went over the trade in great detail in our subscriber-only event so if you have the time, take a listen as you will find the information discussed incredibly helpful going forward. Our one-day return in AXP was 5.3%, which brings us to a total of 12% for this earnings season.

The market and many stocks staged a nice bounce last week, and despite many ups and downs and news-driven moves, they’ve all stopped going down for the past three to four weeks—and that means a few good days could actually produce an intermediate-term green light. Still, as has been the case for weeks, we need to see it before taking any big action: Until proven otherwise, the onus remains on the buyers to show up for more than a day or two, which means keeping plenty of cash on the sideline. As has been the case for a while, our Market Monitor remains at a level 3, though we’ll let you know if that changes going forward.


This week’s list is heavier on commodities than it has been in a while, though there are a few nascent earnings winners in there, too. Our Top Pick fills both bills, as shares are picking up steam after their Q3 report following a 13 month period of no progress.

I’m going to keep it short today as we are coming off the end of the October expiration cycle. We locked in another winning trade last week to make it 12 out of 13 winning trades for a win ratio of 92.3%. Moreover, our three open trades are all in profitable territory and there is a good chance I will close out a few, if not all, over the coming days. If I do close out all three trades, expect to see a few opening trades going out roughly 30-45 days. Stay tuned!

It’s still a bear market, but there were some positive signs this past week, including the market’s surprisingly positive response to another disappointing inflation report last Thursday. With so many stocks and sectors down 20%, 30%, 40% or more, the odds favor a rebound at some point – it’s just a matter of when. Perhaps the most beaten-down subsector has been cannabis, so today we want to take the contrarian route and buy (very) low on a recommendation from new Sector Xpress Cannabis Advisor Chief Analyst Michael Brush. It’s a company that’s growing just fine but whose shares have been overly pummeled like most other marijuana stocks.

Details inside.

From a top-down perspective, there are some rays of light out there--some of this week’s up volume has been very rare, and it comes on the heels of an onslaught of pessimism. That said, none of our indicators have flashed green, and the biggest thing we’re still seeing is selling on strength--this week, Enphase cracked and forced us to sell. We are adding two half-sized positions tonight in stocks from our watch list, but we’re remaining defensive with 78% in cash.

Elsewhere in this issue, we write about our Aggression Index and how it usually leads market bottoms--and how it’s showing interesting action in recent months. We also highlight many stocks that we’d love to own if the market gets going--we have our shopping list ready, but as always, have to see it first before any major buying.

It’s going to be a fairly busy week for trading.

We have four positions that are due to expire at the October 21, 2022 expiration cycle, three of which have little to no premium. As a result, I intend to buy back our calls in GDX, BITO, and KO on Monday or Tuesday. I’ll plan on doing the same in our PFE calls that are due to expire October 28.

My hope is to add several more positions to the Income Wheel portfolio this week as opportunities are plentiful.

I’m going to keep the intro short today as we have an upcoming subscriber-only webinar this week when I plan to touch on the current state of the market, our current trades, and some potential upcoming trades. If you wish to attend or receive the recording of the webinar, please click here to sign up.

Earnings season is finally upon us.

This week offers up a few potential trading opportunities, particularly in the big banks. JPMorgan (JPM), Morgan Stanley (MS), Citigroup (C), Wells Fargo (WFC) and US Bank (USB) are the big announcements on the docket and the companies I will be focusing on.

I also want to remind everyone that we will have a subscriber-exclusive webinar every Friday during earnings season, so make sure to sign-up when you get an opportunity.

The market continues to be strong with the S&P 500 near all-time highs. And micro-caps continue to chug along. In aggregate, our micro-cap recommendations continue to do quite well, and I continue to find many excellent opportunities, especially in “cyclical” areas of the market. Before we get into this week’s update, I wanted to spend some time sharing my perspective on stop-losses as I get questions on them quite often. In general, stop-losses are not a viable option for micro-cap stocks.

It’s a period of offsets for the market. The excitement of a booming recovery is offset by the fact that the market is looking six months ahead to the end of the year when growth is slowing.

Have we already reached “peak” inflation? That’s a question that investors are asking after recent economic headlines suggest some of the factors which led to higher metal prices (and other commodities) may be abating.

Today’s note includes the Signet Jewelers’ (SIG) earnings update and our price target increase, as well as our ratings changes from this past Monday, and the podcast.

The market has been doing OK, though it’s more about addition by subtraction—the fact that growth stocks have avoided any major selling wave after the recent upmove is a plus, but we’re still seeing lots of selling on strength and rotational action that changes by the day.

Small caps and growth stocks continue to look better for the third consecutive week. This is a welcome trend given that the beginning of May was pretty tough.

The overall market has topped out in the last month. But many of the slower-moving and more value-oriented stocks didn’t get the memo.

The market seems to have settled into complacency. We’re in a period after first-quarter earnings reports and government statistics indicate a surging economy, yet investors rightfully wonder if or when the Fed will raise interest rates and are starting to consider what happens after the post-pandemic boom.

Today’s note includes earnings updates, ratings changes and the podcast.

The market seems to have found its footing this week as the economy reopens amidst some supply shortages and inflationary pressures. Electric vehicle stocks are coming back as Ford announced a big push into EVs and its new F-150 Lightning received 70,000 deposits in just 10 days.

The market continues to stumble sideways. On the one hand, the S&P 500 is within a whisker of the all-time high. On the other hand, stocks have been going sideways for about a month.

My favorite market strategist, Ryan Detrick, is always good for some interesting factoids. According to Ryan, when the S&P 500 is up >10% through the first 100 days of the year, it increases 8.6% on average during the remaining portion of the year.

Porch Group (PRCH) has been very weak recently and moves to hold today. This move hasn’t been unique to PRCH, in fact most SPAC IPOs have been soft for a while now. However, we saw a sizeable decline on Friday and follow-through softness today.

The market has hit an air pocket over the last few sessions and SPAC IPOs have been particularly soft for a few weeks now. Today we’re taking partial gains in a few positions and cutting losses short in another.

Friday afternoon several of the April covered calls that we sold expired worthless, leaving us with “uncovered” stock positions.

This bank is undervalued, and has profited during the pandemic.

The shares of this insurance business were recently upgraded to ‘Buy’ at Goldman Sachs.

The expiration of our April covered calls is tomorrow, and our positions are working very well, though several are now trading below the strike price of our covered call options.

We’ve seen a big improvement in the way many growth and early-stage stocks are acting over the last two weeks. Many of our stocks that sold off in March have been gaining some altitude back, and many of those that were acting well continue to do so.

Six analysts have boosted the EPS estimates for this financial research company in the past 30 days.

Nine weeks ago, as the marijuana sector was completing what looked like a climax top, I took the risky step of taking partial profits in ten of our stocks, moving to a 45% cash position.

In the last 30 days, four analysts have raised their EPS estimates for this bank. The shares have a current annual dividend yield of 3.25%, paid quarterly.

The top five holdings in this healthcare fund are: Pacific Biosciences of California Inc (PACB, 7.19% of assets), Danaher Corp (DHR, 4.72%), TG Therapeutics Inc (TGTX, 4.58%(, Fulgent Genetics Inc (FLGT, 4.10%), and Repligen Corp (RGEN, 3.89%).

Activist board members and a recession-proof business may push this company to a nice turnaround.

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.