Current Market Outlook


Major indexes, including the S&P 500, Dow Industrials and Nasdaq Composite remain range bound, chopping sideways in very tight ranges during the past five to seven weeks. But the broad market is looking better and better—most small- and mid-cap indexes hit new highs last week, and we’ve seen some improved action among growth stocks. All told, we remain positive on the market and believe the path of least resistance remains up. Individual stocks have been a bit trickier, but many are acting well. We think it’s best to remain heavily invested.


This week’s list includes many smaller, rapidly growing companies, reinforcing the view that money is flowing toward growth ideas. Our Top Pick is Shopify (SHOP), which has enormous potential as e-commerce expands. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Wix.com (WIX)	302.53	39.5-41.5	35-36
Ubiquiti Networks (UBNT)	170.11	50-52	47-48
Shopify (SHOP)	585.00	40.5-42.5	36-37
Ingevity Corp. (NGVT)	99.98	42-44.5	39-40
Microsemi (MSCC)	0.00	38.5-40	36-37
LGI Homes (LGIH)	86.04	37.5-38.5	33-34
Green Plains Energy (GPRE)	0.00	23.5-24.5	21.5-22
Finisar (FNSR)	0.00	21.5-22.5	19.5-20
Exact Sciences (EXAS)	116.91	18-19	15.5-16
Autodesk (ADSK)	229.00	66-68	60-61

Current Market Outlook


Despite the never-ending Fed watch (many investors are looking forward to this week’s jobs report for clues on the Fed’s next move), the major indexes remain in a very tight trading range, with some (including the S&P 500) basically unchanged since mid-July. Still, by our measures, the intermediate- and longer-term trends remain up, and the fact there has been little giveback by the major indexes in recent weeks is a positive. Individual stocks have been trickier, with some potholes emerging on earnings, rotation among industry groups or simply profit taking, but most remain in good shape. Overall, the odds continue to favor the next big move being up, so you should stay heavily invested in strong stocks.

This week’s list has a nice mix of stories to consider, including a couple that are benefiting from recent acquisitions. But our Top Pick is NetEase (NTES), a leading online game company out of China—growth is excellent, and after a brief shakeout, the stock is back in new high ground.

Stock Name	Price	Buy Range	Loss Limit
ZELTIQ Aesthetics Inc (ZLTQ)	0.00	35-37	32-33
Cimarex Energy (XEC)	0.00	129-134	122-124
Thor Industries (THO)	104.76	78.5-79.5	73-74
Proofpoint (PFPT)	113.79	75-77.5	70-71.5
NetEase, Inc. (NTES)	0.00	208-214	195-196
NetApp (NTAP)	0.00	33.5-35	31-32
Microchip Technology (MCHP)	79.12	59-60.5	55.5-56
Lumentum (LITE)	87.00	32-33.5	29-30
Dexcom (DXCM)	421.36	89-91.5	82-83
Berry Global (BERY)	64.22	43-44	39-40

Current Market Outlook


All eyes are on Janet Yellen this week, who is set to speak Friday morning, and whether she’ll offer hints to the Fed’s next move. As always, we’ll let others slice and dice the comments; we’ll stick with the market’s action itself. And on that front, things look solid—the market’s consolidation of the past few days has been normal thus far, and while a short-term shakeout of some sort wouldn’t surprise us, the odds continue to point toward higher prices down the road. We continue to advise you to remain heavily invested, though be sure to honor your stops for any stocks that break support.

This week’s list includes a nice array of stocks and sectors, including a few recent earnings winners. Our Top Pick is Gigamon (GIMO), a hot stock that’s recently taken a few weeks to catch its breath. Further dips are possible but buying here with a tight stop makes for a good risk-reward opportunity.

Stock Name	Price	Buy Range	Loss Limit
Yelp (YELP)	41.30	35-37	32-33
US Silica Holdings, Inc. (SLCA)	0.00	38.5-40.5	35.5-36.5
Royal Gold, Inc. (RGLD)	129.66	80-83	74-75
Pioneer Natural Resources (PXD)	0.00	177-183	164-166
Insulet (PODD)	175.69	40.5-42.5	37-38
MercadoLibre, Inc. (MELI)	980.83	160-165	149-150
Line Corporation (LN)	0.00	44-46	39.5-40.5
Gigamon (GIMO)	0.00	43.5-46	40-41
Dicks’s Sporting Goods (DKS)	0.00	56-58	50-51
Acuity Brands (AYI)	0.00	273-280	253-256

Current Market Outlook


While most investors are either bearish, neutral or not paying attention at all, the market remains healthy as a horse—most major indexes reached all-time highs last week, which is music to our ears. And we saw improved action among individual growth stocks, too, with some super-hot names racing higher. As we’ve said repeatedly, pullbacks and shakeouts will occur at some point, and if you have a couple of stocks that are very extended to the upside, feel free to book partial profits. But our focus remains on the intermediate- to longer-term, and just about all the evidence on that front continues to point to higher prices in the weeks and months ahead. Thus, you should remain heavily invested.

This week’s list has a mid-cap focus to it, but our Top Pick is a big-cap stock that just emerged from months of base-building: Alibaba (BABA) has all the makings of a liquid leader, and we think it’s starting its first major advance. Details inside.

Stock Name	Price	Buy Range	Loss Limit
Twilio (TWLO)	183.39	55-60	46-48
Symantec Corporation (SYMC)	0.00	21.5-23	20-20.5
Nevro Corp. (NVRO)	0.00	91-95	84-86
MasTec, Inc. (MTZ)	66.65	27.5-29	25.5-26.5
Inphi (IPHI)	120.16	40-42	36-37
Etsy (ETSY)	112.97	13.5-14.5	11.5-12
Copa Holdings (CPA)	0.00	79-81	71-72
Callon Petroleum (CPE)	0.00	13-14	11-11.5
Alibaba (BABA)	254.81	93-96	89-90
Applied Materials (AMAT)	0.00	26-27	24-25

Current Market Outlook


From a top-down perspective, our bullish market stance has not changed—the small- and mid-cap indexes have now joined the large-cap S&P 500 in all-time high territory. Obviously, dips and shakeouts are possible, but to this point, we’ve seen a vacuum of selling pressure on the major indexes. Individual stocks have been a bit trickier, partly because of earnings season; more than a few stocks and sectors have been nailed as money hunts for the leaders of the advance. Overall, we remain bullish and advise you to stay heavily invested, but you should also follow the plan—book some partial profits on the way up and if a stock cracks through support or trips your stop, be sure to exit. Conversely, aim to let most of your winning positions run, as this is the kind of market that should produce many big winners over time.

This week’s list includes many recent earnings winners, including a couple of energy stocks. Our Top Pick is Parsley Energy (PE), which we think is probably the top stock in the sector. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
XPO Logistics (XPO)	0.00	34-36	31-32
Wright Medical (WMGI)	0.00	23-24	21-22
Wingstop (WING)	121.52	28.5-30	26.5-27
Trex Company (TREX)	117.56	57-59	51-52
Shopify (SHOP)	585.00	35-37	31-32
Rice Energy (RICE)	0.00	23.5-25	22-22.5
Parsley Energy (PE)	0.00	30-32	27-28
Paycom Software (PAYC)	0.00	49-51	45-46.5
Louisiana-Pacific (LPX)	0.00	19.5-20.5	18-18.5
Align Technology (ALGN)	316.20	88-91	81-82

Current Market Outlook


One thing that keeps coming up in our research is that the majority of investors think the market is ready for a pullback. Of course, a dip is certainly possible—the major indexes have had a great run over the past month and some short-term measures of sentiment are elevated. But we don’t expect a large market retreat, and besides, obsessing over the next week or two misses the big picture—that a new uptrend is likely underway, and many stocks and sectors are performing extremely well. You still want to find advantageous buy points and cut your losses when things go awry. But we continue to advise you to be heavily invested in strong stocks and let your winners run.

This week’s list has a great batch of high-potential stocks, many of which have excellent growth stories. Our Top Pick is Cirrus Logic (CRUS), a chip firm with great earnings estimates that just exploded out of a year-long base. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
United States Steel Corporation (X)	0.00	24.5-26	22-23
VCA Inc. (WOOF)	0.00	69-71	65-66
Wix.com (WIX)	302.53	33-35	30.5-31.5
Tempur Sealy (TPX)	85.53	73-75	66-68
Lumentum (LITE)	87.00	28.5-30	25-26
GrubHub (GRUB)	140.03	35-38	32-33.5
Cirrus Logic Inc. (CRUS)	0.00	46.5-49	42.5-43.5
Buenaventura (BVN)	16.23	13.5-14.5	12-12.5
B&G Foods (BGS)	0.00	50-51.5	46-47
Abiomed (ABMD)	0.00	117-120	108-109

Current Market Outlook


The market remains in very strong shape. Whether you’re looking at breadth, the trends of the indexes, the action of leading stocks, or sentiment among investors (mostly apathy with some disbelief thrown in), most of the evidence continues to point to higher prices ahead. Of course, that’s for the market as a whole—for individual stocks, earnings season is likely to rock the boat a bit, with some failing while others take the leadership mantle. You should remain heavily invested, but make sure you have your plan in place when it comes to handling your stocks during earnings season. As always, we’ll ditch any stocks that crack and hop on board new leadership that emerges.

This week’s list has a nice mix of sectors, including a few that have already reported earnings. Our Top Pick is Burlington Stores (BURL), a retailer that’s firing on all cylinders and recently pre-announced bullish earnings. Try to buy on minor weakness.

Stock Name	Price	Buy Range	Loss Limit
Yelp (YELP)	41.30	28.5-30	26-27
UFPI (UFPI)	0.00	100-104	91-92
PulteGroup (PHM)	45.93	20.5-21.5	19.5-20
Proofpoint (PFPT)	113.79	69-72	62-63
MSCI Inc. (MSCI)	0.00	80-82	76-77.5
MercadoLibre, Inc. (MELI)	980.83	145-150	138-139
Ligand Pharmaceuticals (LGND)	267.14	128.5-133	116-118
Ironwood Pharmaceuticals (IRWD)	0.00	13.5-14	12-12.5
New Oriental Education (EDU)	113.97	42-44	39-40
Burlington Stores (BURL)	193.95	71-73	66-67

Current Market Outlook


We always strive to go with the evidence the market has presented. Right now, just about all of it is bullish: The intermediate- and longer term trends are up, the broad market is in terrific health (new highs are expanding while new lows are minuscule), we’ve seen some rare, powerful blastoff indicators flash (which almost always portend solid gains in the months ahead), leading stocks are perking up and many investors remain on the sideline. Obviously, a pullback could occur at any time, and earnings season is sure to create some potholes among individual stocks.

But overall, the path of least resistance is up, so we’re pushing our Market Monitor further into bullish territory. This week’s batch of stocks includes many that report earnings within a few days, which makes buying a bit tricky. For our Top Pick, we think a small position in Masco (MAS) can work—it’s shown great power, has buoyant earnings estimates and is part of the newly-strong housing group.

Stock Name	Price	Buy Range	Loss Limit
Zendesk (ZEN)	82.19	27-28.5	25-26
Tahoe Resources (TAHO)	0.00	15-16	13-13.5
Dave & Buster’s (PLAY)	57.01	46-48	42-43
Nucor Corporation (NUE)	66.20	55-56.5	50-51
Match (MTCH)	0.00	15.5-16.5	14-14.5
Mobileye N.V. (MBLY)	0.00	46-48	41-42
Masco (MAS)	0.00	33-34	31-31.5
EBIX Inc. (EBIX)	0.00	51-53	48-49
ServiceNow (NOW)	341.86	19.5-20.5	17.5-18
CBM (CBM)	0.00	54-56	48-49

Current Market Outlook


You really can’t ask for better action from the market since the Brexit vote two weeks ago—the quick shakeout in the major indexes has given way to many days of strong buying, pushing the S&P 500 briefly to new highs this morning and driving other indexes toward key levels. Moreover, a ton of individual stocks have either lifted to new highs or look ready to do so. Short-term, a pullback wouldn’t be surprising given the recent run higher, especially with earnings season set to get underway. Thus, we don’t advise going wild on the buy side. But we’re pushing our Market Monitor back into bullish territory to reflect the evidence—we think you can continue to put money to work as opportunities arise.

This week’s list has a bunch of potential leading stocks if the market keeps improving. Our Top Pick is Acuity Brands (AYI), a leader from a couple of years back that, after a long consolidation, has reasserted itself on the upside as it rides the LED revolution.

Stock Name	Price	Buy Range	Loss Limit
Vantiv (VNTV)	0.00	57-58.5	53-54
Thor Industries (THO)	104.76	69-71.5	65-66.5
Rice Energy (RICE)	0.00	22-23	20-20.5
Monster Beverage Corporation (MNST)	0.00	157.5-160.5	149-150
LifeLock Inc. (LOCK)	0.00	15-16	13.5-14
KB Home (KBH)	36.05	15-16	14-14.5
Ellie Mae (ELLI)	0.00	90-94	84-85
Acuity Brands (AYI)	0.00	260-270	238-240
Applied Materials (AMAT)	0.00	24-25	22.5-23
Acacia Communications (ACIA)	51.83	44.5-47.5	38-39.5

Current Market Outlook


Our title last week was “What Happens from Here Will Tell the Tale.” And so the market’s impressive and immediate snapback from the two-day Brexit decline is a good sign that the bears just aren’t able to take control of this market, even when obvious bad news hits. That said, while the panic low from last Monday should hold, we can’t say the bulls are in control, either, as all the major indexes are still stuck below longtime resistance levels dating back to early 2015. Altogether, we’ll nudge our Market Monitor back up a notch, but what we’re really looking for is a decisive move to new highs before getting bullish. For now, you should hold your top performers, but keeping new buys relatively small and holding some cash is also prudent.

This week’s list has a bunch of mid-cap names that are showing excellent strength—they could be among your leaders if the bulls step up to the plate. Our Top Pick is Beacon Roofing (BECN), a growing play on housing and construction, which may actually get a boost as interest rates plunge.

Stock Name	Price	Buy Range	Loss Limit
TAL Education (XRS)	0.00	60-62.5	56-57
TransUnion (TRU)	83.09	32.5-33.5	30-30.5
NetEase, Inc. (NTES)	0.00	181-185	169-170
Newfield Exploration (NFX)	0.00	41.5-43	38-39
Dycom Industries (DY)	0.00	85-88	79-80
DOC (DOC)	0.00	20-21	19-19.5
Beacon Roofing (BECN)	0.00	45-46.5	42.5-43
Activision Blizzard, Inc. (ATVI)	0.00	38.5-40	36-36.5
AG (AG)	0.00	13.5-14.5	12-13
Abiomed (ABMD)	0.00	106-109	98.5-100

Current Market Outlook


Following the Brexit reaction, all of the major indexes are now decisively below their respective 50-day lines. Thus, we consider the intermediate-term trend to be down, which means it’s best to pare back. (We’ve knocked our Market Monitor down two notches this week.) It’s fine to hold your resilient, profitable performers (there are many stocks and sectors taking this selloff in stride), but you should honor all stops and loss limits and limit new buying to just small positions in strong stocks. The net result will be a higher cash position (around 50%, give or take, depending on what stocks you own and how you run your portfolio) and a handful of top performers in your portfolio. The next few days will be important—a quick snapback would be encouraging, but continued deterioration would have us advising an even more defensive posture. We’ll be watching.

This week’s list is a combination of defensive stocks, yield stocks, some precious metals and a couple of resilient growth ideas. Our Top Pick is Dollar Tree (DLTR), a defensive-type stock that should show excellent earnings growth thanks to last year’s game-changing buyout of Family Dollar.

Stock Name	Price	Buy Range	Loss Limit
Veeva Systems (VEEV)	180.23	32-34	29.5-30
Silver Wheaton (SLW)	0.00	20.5-21.5	19-19.5
SiteOne Landscape Supply (SITE)	98.49	31.5-33	28-28.5
Royal Gold, Inc. (RGLD)	129.66	67-69	61-63
Jack in the Box (JACK)	0.00	82-84.5	77-78
Gigamon (GIMO)	0.00	33-35	30-31
Dollar Tree (DLTR)	0.00	89-92	84-85
Communication Sales & Leasing (CSAL)	0.00	26-27.5	24-24.5
Boardwalk Pipeline Partners (BWP)	0.00	16.5-17.5	15.5-16
Align Technology (ALGN)	316.20	75.5-77.5	72-73

Current Market Outlook


With some weekend polls showing the chance of a “Brexit” lessening, the market gapped up this morning and finished with solid gains. Today’s rally is obviously encouraging and hints that, should the vote on Thursday go as expected, buyers could take control afterwards. Still, as always, we don’t predict—right now, the evidence remains more bullish than not, so it’s best to hold your strong, profitable stocks and add new leaders as they develop. That said, the intermediate-term trend of the indexes is mostly neutral, and until the uncertainty clears up, it’s a good idea to keep new positions smaller than normal, and to honor your stops and loss limits.



The good news is that most top performing stocks handled the market’s 3% dip in fine fashion. This week’s list is another batch of (mostly familiar) names that look great. Our Top Pick is Weibo (WB), a little-known Chinese firm that looks like one of the market’s top glamour stocks.

Stock Name	Price	Buy Range	Loss Limit
wb (wb)	0.00	26-27.5	23.5-24.5
symc (symc)	0.00	19.5-20.5	18-18.5
simo (simo)	0.00	43-45	39.5-40.5
oled (oled)	0.00	67-69	60-62
nvro (nvro)	0.00	71.5-74	66.5-67.5
nuva (nuva)	0.00	57-59	54-55
lulu (lulu)	0.00	69.5-71.5	66-66.5
five (five)	0.00	44-45.5	41-41.5
cprt (cprt)	0.00	47.5-49.5	44-44.5
Barrick Gold (ABX)	0.00	19-20.5	17-17.5

It’s not often that we discuss currencies in the Cabot Turnaround Letter, but given the persistent relative strength of the U.S. dollar right now, I think it’s imperative that we address it—mainly because of how it will likely impact our portfolio holdings going forward.

The top haven asset for the first half of 2026 wasn’t gold, U.S. Treasury bonds or the Japanese yen.

After spending much of the year leading the market higher, small caps have finally run into a little turbulence. Through midday today, the S&P 600 Index is down 1.8% from last Thursday’s close, roughly in line with the S&P 500’s 1.9% decline.

That said, it’s important to keep the recent pullback in perspective. Small caps remain the market’s clear leader in 2026, with the S&P 600 up 20.2% year to date versus an 8.1% gain for the S&P 500.

While flashier, more star-studded teams like Lionel Messi’s Argentina, Kylian Mbappe’s France and Erling Haaland’s Norway garnered most of the headlines at the just-completed World Cup, Spain was the best team. There was nothing flashy about Spain: no mega-stars, not a ton of goals, no relentless attack. Instead, they dominated the tournament with precision passing, immaculate ball control and near-impenetrable (just one goal allowed all tournament!) defense.

High-flying AI-related stocks are facing a high bar of performance. Even what normally would be considered staggering growth is met with a yawn. The backdrop of the Middle East conflict and almost $100 oil is not helpful.

The Philadelphia Semiconductor Index (SOX) has outperformed the S&P 500 by 57% this year, even after a sharp correction. This is basically a macro trade, and there are few industries as cyclical, or as capital-intensive, as semiconductor manufacturing.

The market rolls sideways amidst a slew of conflicting forces.

The S&P 500 has bounced around and is at the same level it was in the middle of May. The primary culprit is technology. That sector has been in a funk. The S&P 500 is hard-pressed to generate any lasting traction while this massive sector, accounting for over 40% of the index, flounders.

The market has gone sideways since May. It seems to be deciding what to do.

It’s encouraging that the resumption of hostilities with Iran has not sent the market lower. It’s also positive that oil prices aren’t rising back to the $100 level earlier in the war, although prices have risen. It’s also another earnings season and analysts expect a big one.

With war being one of the most dominant themes of the last four years, it stands to reason that investors should position their portfolios to account for this conspicuous (and unwelcome) trend.

And lest one be tempted to think that the warfare theme will diminish anytime soon, last week’s article by NPR deflates that illusion: It revealed that global military conflicts are at their highest level since WWII.

Price targets are standard practice on Wall Street. But sometimes, they can act as an artificial ceiling.

For example, say Truist sets a price target on an up-and-coming growth stock that’s 25% higher than its current share price. For a growth stock, a 25% return isn’t much. But then again, the stock could be a total flop, which is the natural boom-or-bust tradeoff growth investors must endure in trading off increased risk for massive upside. So, a price target on a growth stock seems almost like an unnecessary cap on a stock that has the potential to go through the roof.

WHAT TO DO NOW: Continue to trim your sails. In the Model Portfolio, we’ve been getting closer and closer to shore as growth funds and indexes are under pressure and AI stocks cascade lower. Tonight we’re going to further trim Marvell (MRVL) given its ugly action, selling a third of what we have left. That will leave the portfolio with a big 58% cash position. We could put some of that to work if growth names find support, but we want to see key growth measures firm up before buying.

After a brief pause last week, small caps are once again leading the pack.

Through Wednesday’s close, the S&P 600 Small Cap Index is up roughly 21% year to date, compared to gains of about 15% for the S&P 400 MidCap Index, 17% for the Nasdaq and 11% for the S&P 500.

Its earnings season again! That’s a good thing. Earnings just might save the day in an otherwise confusing and uncertain market.

The market is causing whiplash. The Iran peace deal changed things. Stocks held back by high oil prices, and the resulting higher inflation and interest rates, reignited as oil prices came back down after the peace deal. But hostilities with Iran have resumed.

The peace deal may be on hold again. But stocks are hanging in there so far.

The ceasefire with Iran is over and hostilities have resumed. That sounds like a bigger bummer than it’s been in the market so far. Falling oil prices enabled previously beleaguered stocks to soar higher again as the prognosis for inflation and interest rates simultaneously improved. But that rally is over if oil prices spike higher again.

Updates on WellCare Health Plans (WCG) and Whirlpool (WHR).

Boise Cascade (BCC) reported forth-quarter results yesterday, and Axiall (Axiall) rescheduled its earnings report.

Shares of online travel company The Priceline Group (PCLN, 1,240.12) are up $129.44 or 11.65% as of midday today after reporting stronger-than-expected full-year 2015 results.

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.