Search

WHAT TO DO NOW: The market is acting powerfully since Tuesday’s election, and we’re seeing some outsized moves on earnings this week. We’ll have our full update of Growth Investor tonight, but this bulletin concerns AppLovin (APP), which is skyrocketing this morning after earnings, and of course, this comes after a big run. We’re going to lean against the wind here and take some partial profits, selling one-third of our position and holding the rest. Again, more color tonight.

At 6:30 AM ET this morning Docebo (DCBO) dropped its Q4 earnings press release. The company operates a learning platform for both internal and external learners and, yes, AI is mentioned in the first sentence of the press release!

WHAT TO DO NOW: Despite the indexes holding up today, lots of growth stocks are again coming under pressure, continuing a wave of late-week distribution. We’re already holding a lot of cash, but today we’re selling one more position—Vertiv (VRT), which had been trying to hold up but the late-week selling pressure has been too much, cracking the stock. We’ll sell our half-sized position and hold the cash, leaving us with around two-thirds on the sideline in the Model Portfolio.

WHAT TO DO NOW: As we write about in tonight’s issue, there are many crosscurrents out there, with some growth names cracking while others emerge on the upside, so we’re selling laggards while aiming to add fresher, stronger names. In the Model Portfolio, we sold MP and GEV last week, and today we’re going to sell Oracle (ORCL), which tripped our mental stop today. That said, we’re also going to fill out our position in CrowdStrike (CRWD), adding another half-sized stake, and start a new half position in Vertiv Holding (VRT), all of which will leave us with around 38% in cash.

WHAT TO DO NOW: The market continues to act fairly well, though most of our timing indicators haven’t really kicked into gear. We’re OK extending our line, but we’re also going slow and honoring stops on what we own as there are still lots of crosscurrents out there. Today’s bulletin is about Alnylam Pharmaceuticals (ALNY), which we’re selling today after it’s come under pressure this week following no addition to the S&P 500. We’ll hold the cash for now (near 60%) but could redeploy later this week.

Shares of Intapp (INTA) should open higher today after the company beat Q3 fiscal 2024 expectations after the close yesterday. Revenue grew 20.2% to $110.6 million, beating by $2.4 million (2.3%), while EPS of $0.14 was up from a penny in the year-ago quarter and beat by $0.07.

WHAT TO DO NOW: Do a little more selling. We’re seeing another round of selling in growth stocks, with some more abnormal action among a few names. To be fair, most of the action is mixed at this point, whether looking at the overall market (Tides on the fence, etc.) or individual stocks, but the increasing number of air pockets out there has us paring back a bit more today—we’re going to sell one-third of AppLovin (APP), which is our largest position, as well as cut bait on Toast (TOST), which is our biggest loser. Our cash position will now be around 36%.

Make it four in a row when it comes to constructive weeks for the market, as the major indexes and key growth indexes and funds are all again in the black, generally up in the 1% to 2% range.

Special Bulletin: Update on Gold/Silver Sell-Off

Financial Freedom Federation is designed for the investor who wants
the peace-of-mind to live comfortably now and through retirement.

The first-ever Cabot Investors Conference is set for August 14-15 at the Hawthorne Hotel in Salem, Massachusetts.

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

Jacob Mintz, Chief Analyst of Cabot Options Trader, Cabot Options Trader Pro, and Cabot Profit Booster talks about Options Trading.
Among the topics he covers:
* Why options should be part of every investor’s toolkit
* How easy, and profitable, it is to do options trades
* How options can be used to enhance the return on trades you are already making
* 2 options trades you can make right now

2024 marked another profitable year for investors, most of whom are now wondering what 2025 has in store. Here are the profit drivers I see coming next year.

Cheap defensive stocks are poised to outperform if we see sustained market rotation, and BIPC and AMT are two good-looking choices.

The Magnificent Seven ETFs offer a more efficient way to add portfolio exposure, but let’s look closer at the funds and see if it’s worth your time or investment.

After a year of market dominance, the Magnificent Seven ETFs have finally (inevitably) arrived, but should you buy them?