January 12, 2024

Reminder: Because of the MLK holiday this coming Monday, your next Top Ten issue will be sent after Tuesday’s close (January 16). Have a great long weekend.

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Last week saw a lot of leading stocks take some ugly hits, but in true January fashion, this week brought the reverse, with many strong snapbacks, including more than a few names that rebounded to new highs. It hasn’t hurt that interest rates backed off a bit (down seven basis points on the 10-year Treasury), too.

Reminder: Because of the MLK holiday this coming Monday, your next Top Ten issue will be sent after Tuesday’s close (January 16). Have a great long weekend.

Last week saw a lot of leading stocks take some ugly hits, but in true January fashion, this week brought the reverse, with many strong snapbacks, including more than a few names that rebounded to new highs. It hasn’t hurt that interest rates backed off a bit (down seven basis points on the 10-year Treasury), too.

Obviously, the action is a good sign, and for the intermediate-term, it keeps the bullish vibes in place—the trend of the indexes, most sectors and most stocks are still up, while the action of leaders is positive and secondary measures (growth stocks vs. defensive stocks, trends of interest rates) are also supportive.

That said, while we didn’t abandon ship during last week’s dip, we’re not necessarily high-fiving each other after this week, either. January is still here, and following the early-month crosscurrents and well-attended investor conferences, now we have to deal with earnings season, which is basically kicking off today with some blue chips (big banks, etc.) and will intensify going ahead.

We’re certainly bullish overall, but we’re also content to pick our entry points and focus on what look to be true leaders. We’ll leave our Market Monitor at a level 7 for now, but could bump it back up on Tuesday depending on how things look.

POTENTIAL BUYS

We don’t have any fresh ideas from the current list this week—besides, of course, names we’ve written about during the past two weeks, many of which still look to be at decent entry points (FRPT, ITCI, MU, etc.).

SUGGESTED SELLS

Partial Sells

None this week

Full Sells

Agnico Eagle Mines (AEM) – just nicked our stop yesterday. If you still own some you can hold with a stop at 50.5 to 51.
UiPath (PATH) – nicked stop yesterday, and hasn’t bounced at all this week

SUGGESTED STOPS

Advanced Micro (AMD) near 130
Axon Enterprises (AXON) near 238
Birkenstock (BIRK) near 45.5
Blackstone (BX) near 117
Datadog (DDOG) near 112.5
Dave & Buster’s (PLAY) near 45
DoorDash (DASH) near 94
Gitlab (GTLB) near 57
Martin Marietta (MLM) near 474
Nutanix (NTNX) near 40.5
Nvidia (NVDA) near 480
Pinterest (PINS) near 34
Royal Caribbean (RCL) near 116
Snowflake (SNOW) near 183
Spotify (SPOT) near 187
United Rentals (URI) near 525
Vertiv Holdings (VRT) near 44.5

Mike Cintolo

A growth stock and market timing expert, Michael Cintolo is Chief Investment Strategist of Cabot Wealth Network and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides, which has helped Cabot place among the top handful of market-timing newsletters numerous times.