The market was hit hard again last week, so all trends are down, and increased caution is advised.
But I’m not selling any stocks this week, mainly because last week I sold four, and today so many of our stocks are sitting at their 200-day moving averages, thanks to last week’s broad selloff, that I see a good possibility for some bounces.


As for the new recommendation, it’s a well-known discount retailer whose stock is cheap.


Details inside.

There’s been a lot of action of late, mostly on the downside, and this week’s news flow (Fed meeting, jobs report, etc.) is sure to create more. But, really, nothing much has changed with our view: There remain many secondary-type indicators that are at intermediate-term (if not multi-year) extremes, so we’re keeping our eyes open should the buyers show up for more than a day or two. But we have to actually see it to believe it, and to this point, any bounce has been soundly rejected. We’re lowering our Market Monitor to a level 3.



There are still a couple of decent-looking areas, mostly either slow/steady growth firms or special situations. Our Top Pick this week is one of the latter, with an almost hard-to-believe cash flow story.

The sellers continue to come out of the woodwork, with a generally weak environment hitting a big air pocket to end last week, decisively dragging all indexes and the vast majority of individual stocks lower—we’re even seeing the selling spread to the commodity arena, with even the impenetrable defensive areas taking hits. At this point, the major indexes are retesting their January-March lows, and we’re still seeing positive divergences under the surface, but as we’ve been saying for most of the past few months, you have to see it to believe it—right now, there’s no question the trends are pointed down, so we advise staying mostly on the sideline. Our Market Monitor is now at a level 4.



This week’s list is a potpourri of names that are holding well, including some that have lifted thanks to huge earnings beats. Our Top Pick is one of those and, if all goes well, could be part of a new group move.

This was a tough week for all of us as growth stocks, particularly tech stocks, were impacted by concerns over higher interest rates and slower economic growth. Events in China with its economic slowdown and European conflict are not helping matters either. This week we head to Chile for a double commodity play on food and electric vehicles.

Stocks are turning distinctly more bearish in the near term as slower growth in China hits a market that was already teetering in anticipation of a more aggressive Fed.
But the selloff in the indexes doesn’t reflect all stocks. Some stocks have more downside left. Others will likely hold their own even if the market keeps falling. And still other stocks have already been oversold. These stocks should have less downside from here than the overall market, and recover much more quickly when the selling abates.


In this issue, I identify two oversold stocks in the portfolio. These are stocks that have already been crushed and sell at vastly reduced prices despite continuing strong earnings growth. While these stocks may fall further in the weeks ahead if the market gets uglier, I believe they both sell at deep discounts compared to where their prices are likely to be later in the year.

It’s been a challenging year for investors in cannabis stocks, but the good news today is that with the broad market very weak as well, eventually the weakness will turn to strength—and the best of our stocks will soar.

In the meantime, our portfolio is more than a third in cash, waiting patiently for the turn.



Full details in the issue.



Yours for wealth and wisdom.

This week we will be looking to take advantage of the current historic trend that’s taking place in the travel industry as seen through major U.S. airline carrier, United Airlines (UAL).

While there are still plenty of reasons for remaining bullish on the intermediate- and long-term outlook for metals and other commodities, the strengthening U.S. dollar is providing a near-term headwind for metal prices.

The greenback’s latest strength has also performed the valuable service of helping to cool off what was becoming a seriously overheated market condition in several major industrial metals.



However, until the dollar weakens, I’m recommending that participants maintain a mostly defensive stance.

The market was hit hard last week, so all trends are down, and increased caution is advised.
In the portfolio this week, we’re selling four stocks, which will both reduce risk and raise cash.


As for the new recommendation, it’s one of the world’s leading uranium companies, which has a great growth story thanks to growing negative attitudes toward Russian energy and growing positive attitudes toward carbon-free energy.


Details inside.

Under the surface, there does remain some encouraging signs for the overall market, which is a good reason to keep your antennae up for a change in character. But at the end of the day, what counts most is the action of the market and potential leading growth stocks, and on that front, there’s no question the trends are down and the sellers are in control. Thus, we remain cautious, holding 60% of the Model Portfolio in cash, and while we’re not anxious to sell wholesale, we won’t hesitate to sell more if stocks continue to crack.


In tonight’s issue, we review some key measures that show just how severe this selling wave has been in recent months--and why, once it’s over, it should lead to a fresh bull market in growth stocks. We also highlight some new ideas in commodities and elsewhere while we continue to fine tune our watch list.

This issue we examine two unique companies. The first is the only one of its kind making high-value products, including food and fuel, from what others consider waste products. The second is a large clean energy producer that offers a combination of utility-like stability and growth from ESG macro trends in the U.S.

We also tweak our Real Money Portfolio in light of performance and conditions, review the Excelsior portfolio, the Greentech Timer and suggest three additional ESG stocks to consider.

While the majority of Mike Cintolo’s Top Ten Trader is focused on commodity stocks this week, we already have exposure to this group via CLF and MRO. Because of that exposure, I am going to add Box Inc. (BOX) which develops and markets cloud-based content management, collaboration, and file sharing tools for businesses.

The market continues to recover from last week’s short but intense decline. In our portfolio there’s been a dearth of news flow. That’s fine with me. I think we could all use a little less stimulation and step back from our computers and mobile devices a bit more. This has been a crazy spring.

U.S. and global markets continue to be fueled by substantial amounts of liquidity washing over the world. According to Lipper, the amount in American money market funds has reached $4.6 trillion. This is a record going back to 1992.

It’s been another crazy week in pandemic-land. After an interruption last week, the market seems to have resumed its ascent.

The week is representative of the tenuous state of the current market. Continued volatility is a strong possibility. Stocks have had a huge and rapid rebound from the March lows on anticipation of a powerful economic recovery and a booming economy in the third and fourth quarters.

Right now, U.S. stock markets are surging, largely due to the Federal Reserve’s bond-buying binge. As bond prices rise from the increased demand, bond yields fall (and they’re tremendously low).

Remain bullish, but pick your spots. Today was a very brutal day, but it hasn’t changed the evidence, at least not yet—our trend-following measures are still bullish and, along with the recent blastoff indicators, tell us the odds still favor higher prices ahead (though further short-term weakness wouldn’t shock us at all).

We’re finally starting to see signs that investors are realizing that risk actually does exist in the market (I think).

After crashing 34% into bear market territory in record time, it has come almost all the way back in record time. The S&P 500 closed Monday less than 5% from the all time high and in positive territory for 2020.

From an investor’s point of view, I will be cautious about owning P&C insurance stocks. We won’t know the cost of all the damage until second and third quarter earnings reports, but you can be sure that profits will suffer.

Why are markets continuing to move upward in the midst of economic and political upheaval? The short answer is don’t fight the Fed, which has made it abundantly clear that it will do anything necessary to keep this economy and market moving.

The spectacular results from the Cabot Profit Booster portfolio continued in August as we will likely close four positions tomorrow for yields as high as 17%.

Today we are recommending buying and selling insurance stocks.

Today we are recommending buying and selling insurance stocks.

Analysts expect this biotech company to grow by more than 30% next year.

There are five holdings of this long-term fund.

In the past 30 days, 25 analysts have increased their EPS estimates for this tech company.

Our latest addition reported first quarter of fiscal 2021 results last night that beat on the top line.

Analysts expect this medical device company to grow by more than 75% next year.

Tyler is selling a stock from the portfolio.

This software company is expected to grow by more than 28% annually over the next five years.

One of the market truisms that I learned long ago concerns selling stocks near the end of a strong run-up—and because the odds are growing stronger that we’re nearing such a situation now, I bring it up today.

This portfolio stock reported Q2 results that came in better than expected on the top and bottom lines. Another stock moves to Hold.

A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.

A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.

Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.

Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.

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.