The bulls made another, more impressive stand last week, and we do believe last week’s lows have a good shot at holding up for a few weeks. Best case scenario is that a bottom-building process is now underway, which will allow new leaders to build launching pads that will eventually result in much higher prices. But (you knew that was coming, right?) for now, the trend remains down, and while some groups and stocks are catching our eye, it’s best to give the bears real respect until proven otherwise. This week’s list is a mishmash of stocks, but one group that showed exceptional power off last week’s bottom was coal stocks. Consol Energy (CNX) is our favorite of the week – its stock is under tremendous accumulation, as coal prices spike due to tight supply and still-strong demand. Take a small position on any weakness.

Stock Name	Price	Buy Range	Loss Limit
CNX (CNX)	0.00	68-75	-
CPHD (CPHD)	0.00	27-30	-
ILMN (ILMN)	0.00	62-66	-
NLY (NLY)	0.00	18-20	-
RATE (RATE)	0.00	42-46	-
SID (SID)	0.00	78-86	-
URBN (URBN)	0.00	25 1/2 - 27 1/2	-
WLT (WLT)	0.00	38-42	-
AEM (AEM)	0.00	56-62	-
AUXL (AUXL)	0.00	30-33	-

The sharp market break of 2008 has made it clear that the bears are in control, which means you should remain in a highly defensive position. But money has to flow somewhere, and it appears that, for the moment, pharmaceutical and metal stocks are in favor. This week’s Top Ten sports three pharmaceutical stocks, two other medical names and two precious metal stocks – and most of them have good-looking chart patterns. Just be aware that even strong stocks can get hit in bearish environments, so your emphasis should be on building your watch list, holding cash, and making just token new buys until the storm passes. Our favorite pick this week is Pharmaceutical Product Development (PPDI), a steady company whose bottom line is set to accelerate this year. The stock just broke free from a long consolidation after a bullish outlook, which should offer support on any retreat.

Stock Name	Price	Buy Range	Loss Limit
AUXL (AUXL)	0.00	28-31	-
BMRN (BMRN)	0.00	34-37	-
CPHD (CPHD)	0.00	26-30	-
DV (DV)	0.00	53-59	-
GOLD (GOLD)	0.00	38-41	-
LKQX (LKQX)	0.00	19-21	-
MATK (MATK)	0.00	29 1/2 - 31	-
MLNM (MLNM)	0.00	15-16	-
PAAS (PAAS)	0.00	33-36	-
PPDI (PPDI)	0.00	39-44	-

We all prefer rising markets to declining markets, but there is a silver lining to a weak tape – when most stocks are heading south, it becomes easy to spot abnormal strength. That’s what OptiMo, our proprietary stock screening system, has been doing in recent weeks; if big investors aren’t selling shares in this market, they’re likely to buy with abandon during the next bull move. Of course, with the bears in control of most stocks, you should stick with a defensive stance for now – no use investing a ton of money when the odds are against you. But nibbling on a couple of leaders and readying your watch list should pay off when the bulls return. This week’s Top Ten contains another batch of commodity, solar and emerging market stocks. Our favorite of the week is ICICI Bank (IBN), an Indian bank that’s directly leveraged to that country’s tremendous growth. The stock broke out last week, and Indian stocks are acting well.

Stock Name	Price	Buy Range	Loss Limit
ABX (ABX)	0.00	48-53	-
ASTI (ASTI)	0.00	17-23	-
CF (CF)	0.00	100-110	-
CHU (CHU)	0.00	20-23	-
HOLX (HOLX)	0.00	66 - 68 1/2	-
IBN (IBN)	0.00	66-72	-
ILMN (ILMN)	0.00	64-72	-
JASO (JASO)	0.00	65-70	-
KGC (KGC)	0.00	21-24	-
SWN (SWN)	0.00	56-58	-

Investors came back from the holidays in a selling mood last week, driving the indexes and leading stocks sharply lower. And while everyone hopes that this is the final push lower before the bulls truly re-take control, the fact is nobody knows what the future holds. What we do know is that the sellers are punishing most stocks, and the narrow list of leaders that were holding up are now going along for the ride. Conclusion: You should be playing defense, mostly sitting on the sideline and waiting for the storm to pass. As for new buying, a small buy or two is still OK, especially in areas that are actually pushing ahead during this down market. This week’s Top Ten, for instance, features many commodity-related names to examine. Our favorite is Barrick Gold (ABX), which spiked to new peaks last week on its biggest volume in years, as institutions anticipate more good times for gold prices as the Fed cuts rates and the U.S. dollar sinks. It’s worth a nibble here.

Stock Name	Price	Buy Range	Loss Limit
ABX (ABX)	0.00	45-49	-
ADM (ADM)	0.00	41-46	-
ATW (ATW)	0.00	90-100	-
BMRN (BMRN)	0.00	33-36	-
CMED (CMED)	0.00	43-48	-
CTCM (CTCM)	0.00	26-30	-
FCN (FCN)	0.00	57-60	-
MON (MON)	0.00	110-115	-
MTL (MTL)	0.00	85-95	-
UTHR (UTHR)	0.00	100-105	-

It’s been a fun, interesting and profitable year for readers of Cabot Top Ten Report, and it would be easy to recap the highlights … like Baidu, First Solar, Intuitive Surgical and Research in Motion. But you’re not paying us to look back, you’re paying us to look ahead. So here’s what this week’s stocks tell us we should watch going forward. First is the trend toward solar power; investors in these stocks are looking for major revenue and earnings growth in the years ahead. Second is the strength of commodities; from coal to steel to silicon, basic materials are getting more expensive … and profitable. Third is the continuing strength of well-managed foreign companies. Part of their appeal comes from a weak dollar, but the bigger and more important part comes from the greater growth opportunities in developing countries. You’ll find three stocks in this category in this issue; our Editor’s Choice today is good old Baidu, the Google of China. The stock has been knocking on the ceiling at 400 for two months and we’re confident it will break through eventually.

Stock Name	Price	Buy Range	Loss Limit
BIDU (BIDU)	0.00	360-400	-
BUCY (BUCY)	0.00	93-98	-
ENER (ENER)	0.00	30-33	-
JASO (JASO)	0.00	60-70	-
MA (MA)	0.00	200-220	-
MBT (MBT)	0.00	88-98	-
MELI (MELI)	0.00	70-75	-
MICC (MICC)	0.00	115-122	-
SID (SID)	0.00	85-90	-
WFR (WFR)	0.00	78-86	-

Sometimes, the market’s outlook is clear – either the buyers are clearly in control, and the leading stocks are surging on huge volume … or the sellers are driving things lower, as everyone’s favorite stocks get taken out and shot. Today, however, we’re somewhere in the middle. Many leaders are hanging in there, with some showing great volume trends, but a few are breaking down, and the broad stock market is in horrible shape. Thus, while it’s not a full-fledged bear market, the odds aren’t heavily in favor of the bulls, either. Your best strategy is to hold some cash on the sideline, and restrict your new buying to only the best stocks at logical, sound entry points. Our favorite of this week is Massey Energy (MEE), a big, liquid stock from the suddenly powerful coal (yes, coal!) sector. We advise buying on weakness.

Stock Name	Price	Buy Range	Loss Limit
OXPS (OXPS)	0.00	29-32	-
WFR (WFR)	0.00	73-83	-
ARD (ARD)	0.00	36-38	-
BEAV (BEAV)	0.00	48-50	-
CYBS (CYBS)	0.00	15-16	-
JASO (JASO)	0.00	58-66	-
MEE (MEE)	0.00	33-36	-
MELI (MELI)	0.00	50-60	-
NDAQ (NDAQ)	0.00	43-48	-
OSIP (OSIP)	0.00	42-47	-

Though the current market rally is just two weeks old, we’re already beginning to see some big-volume upmoves in the most fundamentally and technically attractive stocks in the market … a sure sign that institutional investors are getting active on the buy side. While this week’s Fed meeting will almost certainly have a big say in the market’s near-term direction, the evidence right now tells us the bulls are re-taking control. And that means you should be putting some money to work! The last couple of Top Ten Reports have highlighted many leaders, and this week’s batch has plenty of interesting stories, big and small, new world and old world. Our favorite of the week is Gafisa (GFA), a Brazilian homebuilder that came public just a few months ago. It’s just now lifting from its first basing structure on good volume, but be aware the shares are somewhat thinly traded, so the stock can be choppy.

Stock Name	Price	Buy Range	Loss Limit
BIDU (BIDU)	0.00	350-390	-
BUCY (BUCY)	0.00	88-92	-
CCC (CCC)	0.00	14-16	-
DE (DE)	0.00	84-87	-
EDU (EDU)	0.00	77-85	-
FCSX (FCSX)	0.00	40-45	-
GFA (GFA)	0.00	37-40	-
MLNM (MLNM)	0.00	14-16	-
RTP (RTP)	0.00	440-475	-
WDC (WDC)	0.00	29-32	-

We’re not ready to declare an end to the market’s correction, despite last week’s encouraging action. After all, a horrendous November (the Nasdaq was down more than 10% for the month before last week’s rally) was bound to lead to some type of bounce; what happens from here will be key. Regardless, there’s no question that many stocks improved their standing, finding big-volume support and, in some cases, shooting to new peaks. These are the names you want at the top of your watch list; the first groups out of the gate usually lead the ensuing bull move. For now, we advise continued prudence – buying just small amounts, keeping some cash on the sideline – but you should also be ready to turn bullish if the market follows-through powerfully in the days ahead. This weeks’ Top Ten contains an eclectic mix of names, some conservative, some high-flying. Our favorite: Turkcell (TKC), the leading wireless service provider in Turkey, which is registering strong bottom-line growth. We love the big-volume upside of late, a sign big investors will support the stock on any pullback.

Stock Name	Price	Buy Range	Loss Limit
ANR (ANR)	0.00	25-28	-
DV (DV)	0.00	50-55	-
FOSL (FOSL)	0.00	40-43	-
ISRG (ISRG)	0.00	310-325	-
OSIP (OSIP)	0.00	42-46	-
SLT (SLT)	0.00	22-25	-
SOHU (SOHU)	0.00	53-60	-
TKC (TKC)	0.00	24-27	-
VRSN (VRSN)	0.00	38-40	-
WFR (WFR)	0.00	73-77	-

With the market in a defined downtrend, the odds are against the bulls; buying a bunch of stocks, even if they have tremendous Top Ten-type relative strength, will usually cost you money. Thus, you should be focusing on building your watch list of resilient stocks with top-notch growth stories; doing that today will prepare you to pounce once the market gives us a green light. This week’s (and last issue’s) Top Ten is a great place to begin building – you’ll find a wide array of stocks here, from different industries with different prospects. Many are familiar names, which we view as a good thing; big investors are still sitting tight with many leaders, giving them a shot at racing ahead once the bulls re-take control. Our favorite of the week is Chicago Bridge & Iron (CBI), partly due to its chart (some recent high-volume buying suggests good support on any weakness) and partly due to the ongoing boom in oil and gas infrastructure.

Stock Name	Price	Buy Range	Loss Limit
AG (AG)	0.00	54-57	-
BIDZ (BIDZ)	0.00	14-17	-
BUCY (BUCY)	0.00	80-84	-
CBI (CBI)	0.00	48-52	-
CNX (CNX)	0.00	52-55	-
FLS (FLS)	0.00	86-93	-
FSLR (FSLR)	0.00	190-210	-
MA (MA)	0.00	175-185	-
STP (STP)	0.00	60-65	-
UTHR (UTHR)	0.00	90-100	-

Last week’s sharp market break on huge volume brought down many leading stocks, and dropped the major indexes through key support. That means the intermediate-term market trend is now down, so you should be selling your losers and poor performers, holding on to plenty of cash, working on a watch list, and possibly making a few token buys here and there. Overall, we know the next bull move will bring many profit-making opportunities (they always do!), so your goal should be to get from here to there with as much of your capital (and confidence) as possible. This week’s Top Ten contains many interesting stories and solid charts, and buying a little on weakness is fine as long as you have cash stowed away. Our favorite of the week is LG Philips (LPL), a cyclical stock in a high-tech industry (LCD screens). Business is improving rapidly, and the stock’s huge-volume breakout means any retreat should be arrested just a little below today’s level.

Stock Name	Price	Buy Range	Loss Limit
LPL (LPL)	0.00	25-27 1/2	-
NUVA (NUVA)	0.00	39-42	-
ONXX (ONXX)	0.00	50-55	-
PCLN (PCLN)	0.00	96-101	-
GFA (GFA)	0.00	33-37	-
GOLD (GOLD)	0.00	32-35	-
ANR (ANR)	0.00	22-25	-
BVN (BVN)	0.00	50-56	-
DNR (DNR)	0.00	51-55	-
FSLR (FSLR)	0.00	150-165	-

This has been one of the wildest earnings seasons we’ve ever seen. Plenty of leading stocks, including a few in this week’s Top Ten, have reacted strongly to their quarterly reports … but there have been a large number of stinkers, too. All these cross currents tell us one thing: Not everyone is rowing in the same direction, and there’s no need for you to take unnecessary risks until that changes. The good news about such a volatile market is that you can easily spot what stocks are resisting the sellers; should the market resume its uptrend, these are the issues that are likely to put on a spectacular show. For now, you should be holding a little cash on the sideline, while making a couple of purchases here and there during weakness. Our favorite stock of this week’s bunch is MasterCard (MA), which, admittedly, has become well known since coming public eighteen months ago. But last week’s huge earnings-related breakout bodes well, and with the market favoring big-cap, liquid stocks, MA should attract plenty of money.

Stock Name	Price	Buy Range	Loss Limit
APOL (APOL)	0.00	70-78	-
CBI (CBI)	0.00	46-50	-
IBN (IBN)	0.00	61-65	-
KGC (KGC)	0.00	17-19	-
MA (MA)	0.00	170-180	-
MOS (MOS)	0.00	63-68	-
SWN (SWN)	0.00	51-55	-
SYNA (SYNA)	0.00	54-58	-
UTHR (UTHR)	0.00	90-100	-
WG (WG)	0.00	36-40	-

There remain a few hundred leading stocks that are in great shape – they’ve reacted well to earnings, are in powerful sectors and find buying support just a couple of weeks after beginning normal corrections. However, there are also plenty of stocks that are languishing, or have been taken out and shot during earnings season, leaving investors scratching their heads. The bottom line is that stock selection is very important in this environment, as the leaders are putting on outstanding displays … but there are still plenty of potholes. Thus, holding a little cash as earnings season continues isn’t a bad idea; this week’s Top Ten, for instance, contains a couple of big earnings winners that look ripe for buying. Our favorite of the week is Nasdaq Stock Market (NDAQ), a pure “Bull Market stock” that’s going to benefit from both the strong equity markets and consolidation in the industry. Look to buy on a pullback of a couple of points.

Stock Name	Price	Buy Range	Loss Limit
CNX (CNX)	0.00	54-58	-
CYBS (CYBS)	0.00	15 1/4 - 16	-
DECK (DECK)	0.00	125-135	-
DV (DV)	0.00	50-55	-
IBN (IBN)	0.00	60-64	-
NDAQ (NDAQ)	0.00	40-45	-
NUVA (NUVA)	0.00	37-42	-
SGR (SGR)	0.00	70-74	-
STLD (STLD)	0.00	49-53	-
STP (STP)	0.00	52-56	-

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.

Coverage of this wireless charging company’s shares were just initiated at Ascendiant Capital and Roth Capital with a Buy rating.

Energous Corp. (WATT)
from Top Stocks under $10

We are ready to jump back into a stock that did very well for us previously and now is a bargain again after getting unfairly...

This maker of biomaterials and bioimplants consistently beats estimates and is rewarding shareholders by buying back shares at a rapid pace.

MiMedx (MDXG)
from BI Research

MiMedx (MDXG) is hitting on all cylinders with the best yet to come in the remaining three quarters of this year. For the latest quarter, EPS was...

Analysts’ estimates for 2016 for this trucking company have risen $0.16 per share in the past 90 days, based on synergies and growth from its latest acquisition.

Forward Air (FWRD)
from The Periscope Report
Updated from Investment Digest 741, April 24, 2013

Forward Air (FWRD) is a trucking company. FWRD picks up packages from...

A small revenue miss has created a buying opportunity in this $9 billion healthcare company.


ResMed (RMD)
from Weiss Million Dollar Ratings

ResMed (RMD, Rated A+, 813 shares) stock fell hard today in the wake of the company’s earnings report. Although revenue grew 6% from the year-earlier quarter, to reach $422.5 million, analysts...

This tech company beat earnings estimates by four cents in the latest quarter, and its shares were just upgraded from Neutral to Buy at DA Davidson.

Gigamon, Inc. (GIMO)
from The Oberweis Report

Gigamon has developed an innovative solution that delivers pervasive and dynamic intelligent visibility and control of traffic across networks. The...

This Chinese video equipment company’s stock is on the move, and has been gaining support, recently receiving positive attention from our contributor, as well as Forbes and The Street.

Vimicro International (VIMC)
from Cabot China & Emerging Markets Report

Lots of companies can manage to grow along with a popular product line, but...

The largest sectors held by these two small-cap funds are Industrials and Consumer Cyclicals, areas of growth that have helped pushed fund prices up. But their fundamental characteristics continue to make them good buys.

Homestead Small Company Stock (HSCSX) and T. Rowe Price Diversified Small Cap Growth (PRDSX)
from Dow Theory Forecasts

This...

This infrastructure company topped Wall Street’s estimates by 17 cents in the latest quarter. Shares are trading at a P/E of less than 7, and the stock pays a small dividend.

Trinity Industries (TRN)
from The Complete Investor

We’ve devoted a lot of ink to the world’s need for infrastructure. Virtually every major...

The top three sectors for this international fund are Financial Services (17.57% of assets), Technology (16.72%) and Consumer Defensive (14.70%).

Harding Loevner International Equity (HLMNX)
from Ian Wyatt’s Million Dollar Portfolio

Harding Loevner International Equity (HLMNX) is a large-cap growth fund that is not hedged. Harding Loevner International Equity invests in 50-60 stocks,...

Guggenheim just initiated coverage on this coffee giant, with a “Buy” rating. The shares split 2-for-1 on March 30, and began trading post-split April 9. This is the first stock split for the company since October 2005.

Starbucks (SBUX)
from 2 for 1 Stock Split Newsletter


There were only three splits in March....

A new NASA contract should help this IT company achieve double-digit growth next year.

Insight Enterprises Inc. (NSIT)
from Weiss Stock Ratings Heat Maps

Insight Enterprises Inc. (NSIT, Weiss Ratings: A-) provides information technology (IT) hardware, software and services solutions that manages and secures IT environments for businesses and government clients. It offers...

This California bank pays a small dividend, just increased by 20%, is seeing growth in loans and deposits and analysts have recently raised earnings estimates.

Preferred Bank (PFBC)
from Upside

Preferred Bank (PFBC) operates in California, where it conducts business through 11 branches. The bank serves commercial and consumer customers, focusing on lending...

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.