Search

After three weeks up in a row, the major indexes were flat-to-lower this week, with the lagging small- and mid-caps performing worst, and the leading Nasdaq holding up the best.

Here are earnings updates on three of our stocks, including a rating change, plus minor updates on three others.

Most of the market’s evidence remains bullish, so we remain optimistic that higher prices are ahead; the Model Portfolio is more than 80% invested in nine strong stocks. That said, it’s not all peaches and cream, as some key indexes are again testing their 50-day lines and we’re still in the thick of earnings season.

The Emerging Markets Timer is in great shape, as the iShares EM Fund is sitting well above its 25- and 50-day moving averages. We have no changes to the portfolio tonight.

We have non-urgent news and price action today: a few trading ideas, and a possible new CEO.

The S&P 500 and Dow finally joined the Nasdaq at new highs this week, although they continue to underperform the tech-oriented index. Despite this divergence, most signals continue to point to further gains for the stock market in the months ahead. I have one rating change today.

Updates on four of our stocks—all rated Strong Buy.

This Weekly Update includes earnings updates and expectations on all our portfolio companies. I have no rating changes this week, and most of our holdings are acting quite well.

All things considered, the past week has been tame. The S&P 600 Small Cap Index retreated 1.4% to get back to its 50-day moving average, while the S&P 500 Index traded sideways.

One of our stocks moves from Buy to Hold. The company cut the dividend and is implementing a new business plan. The outlook is positive.

For the first time in months, we’re seeing a few signs of abnormal action from a variety of growth stocks, though on a positive note, few have actually broken down through key support.

For now, the long-term trend remains up, and so do most of our Cabot Dividend Investor positions. Here’s what’s going on with each of them as we enter summer.

With the longer-term trend clearly up and most leading stocks holding above support (and some pushing toward new highs), we remain mostly bullish.

I’ve been watching for opportunities to add companies to the Cabot Undervalued Stocks Advisor portfolios that are outside the financial, energy and construction sectors and industries. Today, I’m adding an aerospace manufacturer to the Growth Portfolio as a Strong Buy.

We could see a stock market correction in the near future, due to an abnormal concentration of capital in technology stocks and S&P 500 index ETFs (exchange traded funds).

Overall, we think trimming your stocks makes sense. Get rid of any stocks that break down, and taking some partial profits in winners is also a good idea. On the buy side, we’d keep it relatively light for now—it’s fine to take a small position or two, but you should be discerning given the market’s wobbles.

The iShares EM Fund has been trading effectively sideways since the middle of May, and that has kept the Emerging Markets Timer above its moving averages. We have one portfolio move tonight.

The market looks healthier today than it has in nearly two weeks. After its big drop on June 9, the Nasdaq found support repeatedly last week, and this Monday brought an impressive surge in all the indexes.

Updates on all our stocks, no ratings changes, and 10 stocks that look likely to rise 5% in the near term.

In Monday’s issue, we considered whether the market was broadening out because the S&P 500 was nosing to new highs and some other areas were finding buyers. But that all changed on Wednesday, when the market suffered its worst selloff in months, supposedly due to political worries, before bouncing back modestly during the past day and half.