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Change is constant and inevitable, but one thing that hasn’t changed for the past three centuries: America’s love affair with coffee. Coffee is a commodity that has been prized since the 18^th century in America. Many believe it is the fuel that drives America’s economic engine.

So today, we add a fast-growing American coffee company to the Explorer portfolio. It might not be the name you’re expecting...

Volatility has increased and minor divergences are beginning to appear, but the market’s major trend remains clearly up. Thus our Market Monitor remains in bullish territory, and we continue to advise heavy participation. However, with some small cracks beginning to appear, we remind you that cutting losses short is critical, and that buying smart—ideally on high-potential set-ups—is the best way to avoid having to take a quick loss.

Among sectors that are attractive today, we find quite a few in the medical industry, where the Affordable Care Act is beginning to affect the marketplace; in addition to drug companies, health care REITs are strong! Energy remains robust. Retail is very healthy. And numerous Internet-centric firms are thriving, from the leading consumer photography site, to the leading business networking and employment site to a leading provider of fuel cards and related services for commercial vehicle fleets. Our Editor’s Choice today, though, is benefiting from the wholesale shift in mortgage servicing from big banks to smaller, specialized companies. It’s not Nationstar’s (NSM) first appearance here, and it’s probably not the last.

Stock Name	Price	Buy Range	Loss Limit
Zillow (Z)	76.64	44-46	-
Shutterfly (SFLY)	94.71	41.5-43	-
Omega Healthcare Investors (OHI)	0.00	26.5-27.5	-
Nationstar Mortgage (NSM)	0.00	37.5-40.5	-
LinkedIn Corporation (LNKD)	0.00	158-167	-
FleetCor Technologies (FLT)	0.00	67-70	-
Five Below (FIVE)	134.58	39.5-41	-
BioMarin Pharmaceutical (BMRN)	0.00	56-58	-
Bonanza Creek Energy (BCEI)	0.00	32-34	-
HomeAway, Inc. (AWAY)	0.00	28-31	-

Earnings reports have been mixed and market activity muted this week, but today the four technology giants will report after the market closes. Germany reported that its economy contracted the most on record, shrinking 10.1% in the second quarter.

Current Market Outlook


The market’s correction was in full force a week ago, with the S&P and Nasdaq falling to new correction lows and many resilient stocks beginning to give up the ghost. But since then stocks have turned on a dime—whatever the reason (Fed, less-heated trade rhetoric, Mexico deal), the market has soared amidst a vacuum of selling pressure, with the major indexes, the broad market (most number of stocks hitting new highs in months) and many growth stocks all kicking into gear. That said, the intermediate-term trend has not yet turned positive (it’s very close, but not quite there yet) and many stocks are now either extended or running into resistance, so we don’t advise throwing caution to the wind. But there’s no question that the action is encouraging —we’re bumping up our Market Monitor to a level 7 tonight.

This week’s list has a nice batch of stocks, including a few that are hot and others that are just emerging. Our Top Pick is Zillow (Z), which has changed character over the past few weeks and looks like a leader should the market’s rally continue.

Stock Name	Price	Buy Range	Loss Limit
Ciena (CIEN)	44.25	42.5-44.5	38.5-40
Coupa Software (COUP)	262.20	118-124	104-107
The Walt Disney Company (DIS)	144.76	135-138	125-127
Kirkland Lake Gold (KL)	51.30	36-38	32.5-33.5
MongoDB (MDB)	156.56	165-170	149-152
PagSeguro Digital (PAGS)	35.09	34.5-36	30.5-32
UniQure (QURE)	74.08	72.5-75.5	63-65
Vulcan Materials Company (VMC)	137.10	131-135	121-124
Zillow (Z)	76.64	44.5-46.5	40-41.5
Zoom Communications (ZM)	155.83	95-102	81-85

Happy Halloween! True to the occasion, the final day of October is cause for investor celebration this year – all three major indexes were up sharply this month (one more sharply than the other two). Yet, with the Fed set to talk interest rates again this week and midterms and more inflation data on tap for next week, things also still feel a bit spooky out there. So, to fortify our portfolio against any further impending doom, today I’m adding a household name that has a proven track record, pays a hefty dividend, and has been overly punished by all the selling over the past year. In fact, value expert Bruce Kaser just added it to his Cabot Undervalued Stocks Advisor portfolio.

Enjoy!

This weekly update takes a look at how to handle bond investments when interest rates are rising. Bond prices and interest rates work like a seesaw: when interest rates rise, bond prices fall, and vice versa.

Current Market Outlook


The major indexes have scored a couple of solid gains, though we’re seeing plenty of crosscurrents underneath the surface; this could be the start of a rotation out of growth, but it may just be normal action that’s often seen around quarter-end (as hedge funds, most of which get paid quarterly, book profits and reposition themselves). Just looking at the evidence, the push higher has kept the intermediate-term trend pointed up, and while some leaders have hit potholes, most remain in uptrends and have avoided abnormal action. Overall, then, we remain mostly bullish, though we’ll keep our Market Monitor at a level 7 for a bit longer to see if this recent push (a) continues and (b) is led by leading, Top Ten-style stocks.

This week’s list has many familiar names from earlier this year—a good sign, in our view, that leading stocks are continuing their uptrends. Our Top Pick is Ionis Pharmaceuticals (IONS), a unique drug firm with a powerful chart. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Armstrong World (AWI)	88.01	77-79	70.5-72
Array Biopharma (ARRY)	46.35	23-24.5	20.5-21.5
Carvana (CVNA)	82.90	56-59	48-50
Ionis Pharmaceuticals (IONS)	73.34	77-80	69-71.5
Paylocity (PCTY)	97.34	87-90	79-81
ServiceNow (NOW)	341.86	240-248	220-223
Survey Monkey (SVMK)	19.97	17-18	15.3-16
TAL Education (TAL)	50.49	34-36.5	31.5-32.5
TransDigm (TDG)	599.41	443-458	415-425
Universal Display (OLED)	187.54	150-155	134-137

The economy is steady, but economists are beginning to worry about consumers. For December, retail sales were flat (vs. the anticipated 0.4% rise) after an increase of 0.6% in November. And credit card balances rose 5.5% from last year, to $1.28 trillion, according to the Federal Reserve Bank of New York.

Inflation remained at 2.7%, and unemployment ticked down a bit, to 4.3%. That’s some good news!

Now that the stock market correction finally arrived, I want to sketch out what investors can expect in the near future.

We’re going through a highly unusual period in the history of the stock market during which earnings estimates keep rising for a broad spectrum of companies. That’s because we’re experiencing a growing economy, deregulation and lower income tax rates, all of which contribute to rising corporate profits.

By Roger Conrad in Canadian Edge: “Extendicare Real Estate Investment Trust (EXE.UN on the Toronto stock exchange or OTC in the U.S. as EXETF) has long caught my eye in the health care space as an owner and operator of long-term care facilities in the U.S....

In February’s Issue of Cabot Early Opportunities we dig into the red hot IPO market.

We take a closer look at five recent IPOs that have been on my shopping list. It is not an Issue for the faint of heart. Several of these stocks have made significant moves in their short history as public companies.



There are strategies to mitigate the risks, however. And as we scan the universe of attractive stories today it is not hard to envision several of these stocks trading significantly higher a year from now.



Sit back and enjoy.

In last week’s update we reviewed the market’s good and bad, and we wrote that “we think the odds strongly favor the next big move being up. But, near-term, there’s still a decent chance that growth and other Top Ten-type names could see more backsliding (or bottom building, if you prefer) before breaking out.” Our Market Monitor has crept up of late but is still at a level 6 (out of 10).

Shares of Xometry (XMTR) are up double digits to new highs today after the company smashed Q3 expectations and raised full-year guidance. Here are the headline numbers:

It’s been a tricky environment for many weeks, with cyclical and defensive areas doing well but with growth areas lagging. But this week definitely had a different tone, with the weak growth arena getting hit hard—before today’s bounce, the Nasdaq was off 4% on the week, while some growth funds (like the ARK Innovation Fund, ARKK, which was down 11%) cratered and many stocks cracked.

What to do right now with AAPL: buy, sell or hold? The answer depends on your timeframe and investment goals. But there’s a better alternative to Apple.

With housing starts on the rise, homebuilder stocks are shaping up nicely. Here are six that are trending well - but still undervalued.

The market\'s rally in recent days has turned our Cabot Tides positive, joining our Cabot Trend Lines and Two-Second Indicator. Because of that, we did some buying in a Special Bulletin last evening, but added half-sized positions because both companies are set to report earnings next week.