First and foremost, I hope you had a fun and relaxing long Thanksgiving weekend. Our offices are back at it today, beginning the end-of-year rush.
As we wrote a week and a half ago, there’s no Top Ten issue today—one of our two weeks off (50 issues a year). But we don’t want to be too out of touch, which is why we’re sending this brief update today, hitting on a couple of market-related points and updating our list of stops and sells below. As always, you can email me at mike@cabotwealth.com with any questions you have.
We’ll start, as usual, with the market. From a top-down perspective, the trends obviously remain strongly up when looking at the major indexes. While Friday finally brought a little profit taking, all of the indexes we track closely remain in firm intermediate-term uptrends.
In the very near-term, last week’s rush higher, following seven-plus weeks on the upside, smelled a bit like a mini-buying panic, and Friday finally saw some profit-taking set in. It’s nothing to freak out about, but some pullbacks/consolidations/potholes wouldn’t be surprising.
And actually, among individual stocks, we’ve seen some of those short-term potholes emerge, via “bad news” (downgrades, etc.) or just some subtle rotation among groups.
None of this affects our bullish view. In fact, given the strong advance in recent weeks in the market and many leaders, the odds strongly favor any one- or two-week retreat providing some solid entry points.
However, right now, it’s probably best to be choosier on the buy side, whether that means targeting weakness or starting with small positions. If and when we do get some selling pressure, that should provide meatier opportunities. As for the stuff you own, don’t forget to ring the register every now and then (taking partial profits), but we advise holding at least some of your best performers, giving them a chance to turn into bigger winners.
SUGGESTED STOPS
Acadia Pharm (ACAD) near 41.5
Agnico Eagle (AEM) near 56
Allegiant Travel (ALGT) near 161
Apollo Global (APO) near 40.5
ASML (ASML) near 256
Boot Barn (BOOT) near 37
Bristol Myers (BMY) near 54.5
Burlington Stores (BURL) near 205
Crocs (CROX) near 32.5
Edwards Lifesciences (EW) near 231
Generac (GNRC) near 88
InMode (INMD) near 41
Insulet (PODD) near 161
Lennar (LEN) near 57
KB Home (KBH) near 32.5
Lam Research (LRCX) near 254
Lululemon (LULU) near 206
MKS Instruments (MKSI) near 101
New Oriental Education (EDU) near 114
Reliance Steel (RS) near 111
RH (RH) near 183
Sherwin Williams (SHW) near 560
TAL Education (TAL) near 41
Temper Sealy (TPX) near 81
Target (TGT) near 114
Valero (VLO) near 92
Visteon (VC) near 85