Note: We’re sending out a brief Movers and Shakers today as our offices will be closed Thursday and Friday. While there won’t be a Top Ten issue next Monday (one of our two regularly scheduled weeks off all year), we will be around so don’t hesitate to email (mike@cabotwealth.com) with any questions. Our next communication will be next Friday’s (December 4) Movers & Shakers. Have a great holiday and long weekend!
As for the market, not much has changed with our view—the major indexes look great, although near-term, some elevated sentiment measures and the hype surrounding Dow 30,000 could make for a post-holiday shakeout. Still, the intermediate-term trend is pointed up and many blastoff-type indicators bode well when looking out over the next few months.
Among individual stocks, meanwhile, things are slowly improving, but as yesterday showed, many stocks and sectors are still subject to wild rotation and air pockets. There’s definitely more good than bad, but we think going relatively slow and picking your spots (and buy points) remains important.
SUGGESTED BUYS
In general, we’d be looking for names that showed great action a few weeks back and have rested for three-plus weeks. Some ideas on that front would be Align Technology (ALGN), Pinterest (PINS—preferably on a bit more of a shakeout), possibly Zillow (Z) and Martin Marietta (MLM—though with a relatively tight stop).
SUGGESTED SELLS
If you’ve own some of these cyclical stocks for a few weeks and are sitting on nice gains, you can consider partial profits. Freeport McMoRan (FCX) looks great, but it’s now five points above its 50-day line, has been advancing for months and gapped up yesterday; shaving off some shares and holding the rest makes sense.
As for outright sells, we have none right now, though we are tightening stops on some laggards (below).
SUGGESTED STOPS
Align Technology (ALGN) near 405
Avalara (AVLR) near 147
Brinker Int’l (EAT) near 44.5
Carrier Global (CARR) near 34
Exact Sciences (EXAS) near 111
Five9 (FIVN) near 138
Freeport McMoRan (FCX) near 17.9
Freshpet (FRPT) near 120
HubSpot (HUBS) near 324
Invitae (NVTA) near 44
JD.com (JD) near 82
Martin Marietta (MLM) near 250
Natera (NTRA) near 73
Paycom Software (PAYC) near 362
Qualcomm (QCOM) near 130
Quanta Services (PWR) near 62
Seres Therapeutics (MCRB) near 29.5
Shift4 Payments (FOUR) near 54
Square (SQ) near 171
Staar Surgical (STAA) near 69
STMicroelectronics (STM) near 33
Taiwan Semi (TSM) near 89
Target (TGT) near 162