Explorer stocks had a good week. MercadoLibre (MELI) shares were up 10.2% in their second week as an Explorer recommendation. Coeur Mining (CDE) shares are a juggernaut, up another 11.8% this week and more than 308% over the last year. TransAlta Corporation (TAC) shares were up 12.8% this week as the focus on energy stocks intensifies. Archer Aviation (ACHR) shares, however, declined 8.7% this week as the market is looking for clear signs the company is on track for FAA certification, so I’m moving this stock to a hold.

The last few years have been turbulent ones for passenger airliner JetBlue (JBLU) which, in spite of an industry-wide recovery, hasn’t experienced the lift that many of its peers have since 2024.

On an industry-wide basis, domestic passenger airlines fully recovered in 2024, even surpassing pre-Covid levels, with last year showing continued profitability, record traffic and strong demand. For JetBlue, however, the last couple of years have witnessed operational headwinds—underscored by a failed $3.8 billion merger with Spirit Airlines—forcing the airline to turn its focus inward to improve profitability.

Cannabis investors continue to await a significant catalyst which may hit inside the next month or two.

I expect Attorney General Pam Bondi to implement President Donald Trump’s executive order to reschedule cannabis in that time frame. That’s my best guess based on analysis from people close to the process. No one knows for sure, however.

The news would spark a sellable rally for traders. Long-term investors should hold through.

Rescheduling means moving cannabis to Schedule III from Schedule I under the Controlled Substances Act. That will save the larger publicly traded cannabis companies tens of millions of dollars each in annual tax expenses. That’s because rescheduling neutralizes an IRS rule that bars the deduction of operating expenses against the sale of Schedule I substances.

Critical metals like copper, aluminum and even silver are commanding headlines, thanks to their uses in high-demand applications pertaining to the AI datacenter/infrastructure buildout trends. But lost in the shuffle is what some analysts are calling the “forgotten metal”—nickel. The base metal is heavily used in high-energy battery applications, including for its use in boosting range in EV lithium-ion batteries—particularly with long-range or premium vehicles—with high-nickel batteries currently dominating EV markets in North America and Europe.

The market has been bouncy but slightly higher for the year so far, but it’s a different story under the hood.

Eight of the eleven S&P stock sectors are outperforming the market, and none of them is technology. That’s a stark difference from most of this bull market, where technology and AI drove the market higher while most other sectors underperformed. Now, the rally is broadening.

The market isn’t as expensive as it may seem, as the valuations of many stocks are below that of the overall market and don’t reflect the index returns of the bull market so far. Most of the expensive stocks are in technology, but those stocks are getting cheaper as well.

In this issue, I highlight two of the most promising dividend stocks for 2026. Both stocks have been in the portfolio before and have provided great income and total returns in a short period of time. They also can generate huge call premiums.

The market has rebounded encouragingly from last Monday’s Greenland/tariff fears—and, ideally, that shakeout will prove to be the last one for the big-cap indexes and for growth stocks before a sustained run higher. Still, to this point, while resilient, the evidence hasn’t changed, with the broad market doing well, but also with many areas of the market still lagging. Thus, we’ll again leave our Market Monitor at a level 7, but now’s the time to really pay attention—a reversal lower would obviously be iffy, but a rotation into many growth stocks that have rested for three months is possible.

This week’s list is again well-rounded, with many names acting well ahead of their reports. For our Top Pick, we’ll go with a commodity-ish name that’s finally hesitated the past couple of weeks as its moving averages start to catch up. A bit more weakness should lead to a solid entry.

More than half the country is buried in snow or ice today. And yet, stocks continue to hum along regardless of the weather, economic headwinds or myriad geopolitical worries. A big one was quickly stamped out last week, when renewed tariff threats caused a brief market shock before cooler heads prevailed in Davos. This week will be dominated by mega-cap earnings and another Fed meeting. Given the market’s resilience against all-comers of late, today we take another big swing with a mid-cap industrial stock that was the Top Pick from Tyler Laundon in the most recent edition of Cabot Early Opportunities advisory.

Details inside.

Please note this is an update focused solely on our open positions as I am away from my home office and stuck in travel limbo having been impacted by the snow/ice storm this past weekend. I HOPE to be back at the desk this evening, but that is in question. However, while I’m away from my desk, I am still able to monitor our positions if we need to make moves.

Please note this is an update focused solely on our open positions as I am away from my home office and stuck in travel limbo having been impacted by the snow/ice storm this past weekend. I HOPE to be back at the desk this evening, but that is in question. However, while I’m away from my desk, I am still able to monitor our positions if we need to make moves.

If you are a commodities or small-cap investor, you’d probably be heavily invested right now -- but, for growth stocks, the environment remains challenging, with lots of ups and downs but no real progress, and with most growth funds (including the Nasdaq) under performing even defensive stocks. The odds favor the next major move being up, but until that starts, we’re staying relatively close to shore and waiting for more stocks to get going, possibly during earnings season.

Momentum has broadened out to start 2026, with several previously under‑the‑radar groups (like industrials) showing powerful relative strength, even as last year’s market leaders take a breather.

This month’s issue leans into these emerging trends. I feature companies tied to infrastructure, building systems, aerospace engines, and industrial filtration. I’ve also included a fast‑moving biotech company with multiple near‑term catalysts.

Enjoy!

Coming off record highs early last week, U.S. equities drifted lower as the week progressed as the first week of the corporate earnings season unfolded. And despite upbeat earnings from select tech and semiconductor names, profit-taking set in across large caps late in the week and kept the major averages slightly underwater by Friday’s close. Small caps bucked the broader trend, continuing their early-year leadership as the Russell 2000 extended gains on optimism around economic resilience and rotation out of mega caps. For the week, the S&P 500 lost 0.4%, the Dow fell 0.3%, and the Nasdaq Composite declined by 0.7%.

Circle December 15 on your calendar. That’s the day the Supreme Court will likely let us know whether it decides to hear a major cannabis lawsuit. If it says yes, cannabis stocks will rally hard. Cannabis stocks may well even rally in the run-up to that date.

The suit challenges federal jurisdiction over cannabis in states where it is legal. We still won’t know the final outcome if the court decides to take up the case. So, any rally might be sellable for very short-term traders. Personally, I will continue to hold through, because the timing of any rescheduling news is uncertain.

The market is close to the high, and all eyes are on the Fed.

The market has priced in a 0.25% fed funds rate cut already. It could get ugly if the Fed doesn’t cut the rate on Wednesday. But that is unlikely. The rally in interest rate-sensitive stocks took place over the past few weeks. Now, those stocks are pulling back as investors fret over what the Chairman might say about future rate cuts in the minutes following the rate cut announcement.

It’s that time of the year when economists and market mavens spill an abundance of ink making year-ahead stock forecasts and boom/bust warnings. As there seems to be an abnormal amount of recession predictions for the year ahead—including a few from some reputable sources—I think we should examine the question: Will the U.S. witness a major economic shock in 2026?

WHAT TO DO NOW: The evidence has improved of late, though we haven’t seen many decisive green lights from our indicators. Still, with so much cash, we’ll dip a couple of toes in tonight and then follow up … if the good vibes continue. Tonight, we’ll add half-sized positions (5% of the account) in Eli Lilly (LLY) and JFrog (FROG), leaving us with a still-big 55% cash hoard. Details below.

The resilient market forges on. After the biggest market dip since April in the middle of last month, the S&P has gained it all back in the last couple of weeks.

Stocks weakened last month as investors worried that tech stock valuations were too high, as the artificial intelligence trade may be overdone. They also worried that the Fed would not cut rates in December. But stocks were rejuvenated after some positive statements by Fed members greatly increased the odds of a December fed funds rate cut.

This is one confusing market. It’s doom and gloom one day and then optimism the next. Investors can’t seem to make up their minds about whether the world is going to Hell in a handbag or it’s time to buy. What’s going on?

Last week was confounding to say the least. Two events promised to address the market’s chief concerns: the sustainability of the AI trade and the state of the economy. Last week’s earnings report from the ultimate AI bellwether Nvidia (NVDA) and the long-awaited jobs numbers could answer both questions. Both the earnings report and the jobs report were everything investors could have hoped for. Stocks tanked anyway.

Due to a short Thanksgiving week, rather than the usual stock-by-stock update, I will briefly highlight some significant moves by Explorer stocks. I’d also like to wish you and your family a great long Thanksgiving weekend.

Regrettably, Universal Technical Institute (UTI) has not worked out for us despite filling a crucial need and posting impressive earnings, as the stock was down sharply this week. I’m moving this to a sell. Coeur Mining (CDE) and International Business Machines (IBM) were both up about 6% this week, while Sea Limited (SE) was down 7%.

A couple of weeks ago we discussed the likelihood that the “all things AI” momentum trade would sooner or later lose luster. I called into question the tenacity of some of 2025’s top-performing tech stocks while also speculating that some of this year’s wayside laggards would launch a return to prominence in the coming months.

WHAT TO DO NOW: The market tried to rebound today after Nvidia’s earnings last night—but big investors stepped up to sell, driving the market and many growth stocks into the red. Our Cabot Tides have now joined the Two-Second Indicator in negative territory, which has us remaining cautious and holding plenty of cash. In the Model Portfolio, we’re going to book partial profits in the ProShares S&P 500 Fund (SSO), selling one-third of our stake and holding the rest. That will leave us with a cash position of 62%. Details below.

A quick housekeeping note: with our offices closed next Thursday and Friday for Thanksgiving, we won’t be publishing the regular Weekly Update next week. I will, of course, send out Special Bulletins if/as needed. I hope you have a happy and healthy Thanksgiving!

On to the market.

Nvidia’s (NVDA) upbeat revenue forecast due to ongoing AI demand should help to tamp down bubble concerns today and possibly stanch the selling that pushed the S&P 500 and Nasdaq below their 50-day moving average lines earlier this week and inflicted the same damage on the S&P 600 SmallCap Index last Thursday.

It was a rough week for investors of all stripes, as the S&P 500 is down 3.5% since we last wrote, while the Nasdaq tumbled more than 4%. Even the usually steadier Dow Jones Industrial pulled back nearly 5%, while value stocks pulled back nearly 2%. All month, growth stocks have been getting battered, with many high flyers getting sold off even after convincing earnings beats. Now, the selling has spread to other corners of the market.

But not all sectors are suffering.

Helen of Troy (HELE) is imploding on earnings today, despite beating estimates on both the top and bottom lines. Revenue, however, declined 9% year over year, while earnings per share of 59 cents were less than half the $1.21 the company earned in the same quarter a year ago, though they were north of the 54-cent estimate

Sell a Half Position in UiPath (PATH)

Sell Live Nation Entertainment (LYV) & ThredUp (TDUP)

Fill Second Half: Sensient (SXT) and Unity (U)

Today, a whopping eight Profit Booster positions will expire. Most are “slam-dunk,” full-profit trades, while others will go down to the wire.

The big takeaway, before we dive in, is we are going to let the situation play itself out, and come Monday/Tuesday of next week we will revisit our profits, as well as how we will manage the remaining positions.

We’re going to make a couple of moves today ahead of tomorrow’s Fed meeting and the publishing of the September Issue of Cabot Early Opportunities.

Sell Dynatrace (DT) and Waystar (WAY)

My August pick, Argan (AGX), has become one of the core ways for small-cap investors to play the AI data center, natural gas power and electrification of everything themes. The company grew revenue by 50% last year. As such, expectations from Argan have been high, despite management’s continued conservativism given the current year growth rate will be slower (around 10%) than last year before ramping up again in FY27.

Here some of the most common questions Mike Cintolo gets from the readers of Cabot Top Ten Trader.