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.

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.

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).

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.

We want to take a moment to highlight breadth across the overall markets. Many individual stocks are down well over 50%, while indices have remained more stable. Why? The composition of the S&P 500 is weighted heavily towards mega-cap technology companies. Stocks like Apple, Amazon, and Google remain near all-time highs, bolstered by the overall current flight to quality. Investors remain enticed by buybacks, splits, and fundamental cash flow generation.

Many investors are simply asking themselves: what do I buy right now if anything at all?



Demand for unprofitable assets has fallen off precipitously.

With the market becoming less supportive, I’m dialing back the aggression, so this week’s recommendation is a lower-risk company in the pharmaceutical sector that pays a solid dividend.
As for the current portfolio, our three energy stocks remain very strong, and there are no changes.


Details inside.

The environment remains essentially the same this week, as we have a broad market that continues to struggle, major indexes that are back in intermediate-term downtrends and commodity and defensive stocks about the only two areas that are doing decently. We continue to see secondary signs that are encouraging, including many measures that tell us selling pressures are gradually easing, but as always, we need to see the market and individual stocks prove themselves before changing our stance in any real way. It’s best to remain mostly cautious until the buyers return. Our Market Monitor will remain at a level 5.

After falling 34% in record time, the S&P 500 has recouped more than half of the losses. As of this writing, the market is down just 15% from the February highs. The S&P 500 is now back to the same level it was at this past October. Clearly the market is optimistic about the speed and strength of the economic restart. And the market usually gets it right.

I’ve been receiving questions recently that essentially ask, “Why did this stock go up when the company reported bad news?” and “Why did this other stock go down when the company reported good news?”

The S&P 500 crossed above its 25-day moving average line on April 6 and is back above its 50-day moving average line today. It is only 16% off its previous high. Granted, under the circumstances that doesn’t seem quite right. But nevertheless, there it is.

What we may see developing in markets is a rather broad trading range – say from 21,000 to 25,000 in the Dow. This could be our reality until we work our way through the real but uncertain impact of the shutdown on the economy.

There is good news out there. The country is starting to reopen the economy. Sure, there is a political debate, and certain hot spots aren’t ready to reopen yet. But the urgent push to restart this economy is undeniable.

All of our portfolio stocks move to a Hold recommendation while U.S. stock markets react to turmoil in energy markets. I expect more downside to U.S. stocks in the coming days.

Remain defensive, but stay tuned. Despite many crosscurrents and news-driven moves this week, we’re just playing it by the book—our Cabot Tides are close to a buy signal, and if that happens, we’ll take a step back into the market.

As we move closer to the end of another week, investors continue to focus on the potential timeline to open parts of the economy. New York has just said the lockdown for non-essential businesses remains in effect for at least another month, but clearly there are many areas that haven’t been so badly affected.

The market is forward looking. It senses an end to this pandemic crisis and a reopening of the economy sooner rather than later. That’s good news. And I agree. The end-of-the-world pessimism that caused the market crash is being tempered. It’s a very good thing.

Yesterday, while reviewing my entire Buy List, I noticed that the insurance/annuity and investment stocks appear ready to begin new run-ups, after resting for a few days.

The pandemic has hit this entertainment company hard, so it is no longer on the Buy list for our contributor.

This lab company’s stock was hit hard by an SEC investigation into its COVID product, but our contributor (as you’ll see below) remains very positive about the stock.

Our contributor is taking some major profits on his 2020 Top Pick—triple digits!

This electric car company is expected to grow by triple-digits next year.

The stocks in the marijuana sector have pretty much traded in sync with the broad market since the March bottom, climbing strongly to late-May or early-June peaks and consolidating those gains since, with many stocks pulling back to sensible support levels.

Major gold stocks still look undervalued relative to gold. We feel the post-panic gold stock upswing has room to go higher.

There’s a new DRIP plan for this bank, which has a current annual dividend yield of 2.01%, paid quarterly.

With a portfolio flush with positions and the market having gotten a little choppy lately we’re going to move incrementally more conservative today.

The major indexes are up as we start a holiday-shortened week, with the Dow up 373 points as of 11:15 am and the Nasdaq up 24 points. But it’s a heavy rotational day, with the broad market up but leading growth stocks getting hit.

The pandemic has boosted the shares of this e-commerce payment processor, and analysts expect triple-digit growth from the company next year.

This medical device company makes unique equipment to treat blood clots.

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 Momentum 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 Momentum Trader features.