Search

A very promising start to the trading week, which saw the indexes surge higher by 5%, was somewhat washed away by Friday’s post Jobs Report sell-off. And while the steep declines Friday were worrisome, big picture the S&P 500 still managed to gain 1.5% on the week, the Dow rallied 2%, and the Nasdaq added 0.7%.

For the first time in the new year, the market had a bad week. The declines aren’t terribly surprising or worrisome (for now), as the recent rally had been without much of a pause.

Following a monster week of earnings, a Federal Reserve interest rate hike, and the January Jobs report, “risk on” continues to be the theme in early 2023 as the Nasdaq once again led the indexes higher.

Once again, the sellers stepped in last week and at least in the short term dented the bulls’ optimism. By week’s end the S&P 500 had fallen 3.35%, the Dow had lost 2.71%, and the Nasdaq had declined by 3.57%.

Once again, the sellers stepped in last week and at least in the short term dented the bulls’ optimism. By week’s end the S&P 500 had fallen 3.35%, the Dow had lost 2.71%, and the Nasdaq had declined by 3.57%.

The market boomed today after a tamer-than-expected inflation report, with the Dow exploding higher by nearly 1,200 points (3.7%) and the Nasdaq surging 761 points (7.3%).

Today, I will continue my chart series, by writing about using bursts of volume to identify areas of support.

Four things you shouldn’t think about when investing in stocks.

Whether you’ve got an appetite for small-cap stocks or value stocks, Cabot has a publication that will fit your needs.

Today’s note includes the Signet Jewelers’ (SIG) earnings update and our price target increase, as well as our ratings changes from this past Monday, and the podcast.

In most cases, the market acts in a way that surprises the majority, but during the past couple of weeks, stocks have actually behaved as we expected—the major indexes have calmed down to digest their huge post-June 24 run, while volatility among individual stocks has increased as earnings season produces all sorts of big moves up and down. Overall, the bulls remain in control, and while you have to watch your step during earnings season, we’re seeing some new leadership emerge, which is a good sign.

This week’s list includes a few recent earnings winners; powerful gaps up on a firm’s quarterly report usually lead to higher prices. Our favorite of the week is Facebook (FB), which had a coming out party last week after blowing away expectations. It’s extended, but we think you can start small here and look to build a position should the stock advance.

Stock Name	Price	Buy Range	Loss Limit
Yandex (YNDX)	0.00	30-31.5	27-28
TripAdvisor (TRIP)	55.14	70-73	62-64
Pharmacyclics (PCYC)	0.00	100-104	92-93
ManpowerGroup (MAN)	90.84	64.5-66	60-61
Illumina Inc. (ILMN)	289.74	79-82	72-73
Finisar (FNSR)	0.00	18-18.5	15.5-16.5
Facebook, Inc. (FB)	0.00	33.5-35.5	30-31
E*Trade Financial (ETFC)	0.00	13.5-14.5	12.5-13
Dana Holding (DAN)	0.00	20.5-21.5	18.5-19.5
Celgene (CELG)	0.00	139-143	127-129

The market’s resilience in the face of bad headlines (tariffs, higher inflation, an increasingly cautious Fed, etc.) continues to impress. And with the major indexes currently trading near their 2025 highs despite all the outside attempts to derail them, perhaps the next big market move will be up. With that in mind, today we add to our growth stockpile in the form of a former market (and Cabot) darling that was recently recommended by Mike Cintolo to his Cabot Growth Investor audience. After a rough stretch in mid-2024, the stock is soaring again.

Details inside.

The world isn’t providing much good news for emerging market stocks to build on, but the stocks themselves are doing a good job of ignoring that. This doesn’t mean that we have a new buy signal, but there are a growing number of stocks that are putting in bottoming structures and even a few making some progress. With the market looking ahead, we could start to see new leaders emerge in the next few weeks or after EM companies report their quarterly results in a couple of months. There will be plenty of bargains when the turn comes, and we’re featuring an old friend that been in the doldrums for quite a while but boasts a huge story. Read on for all the details.

As markets closed the year largely treading water, one might ask why prices of stocks, gold, and just about everything are leaving 2025 higher than they started 2025.

One simple answer is that there is a lot of money sloshing around the world looking for opportunities. Governments and central banks injected trillions of dollars in stimulus during and after the pandemic. Much of that continues to drive momentum trades. Americans alone hold over $7 trillion in money market mutual funds.

WHAT TO DO NOW: We continue to stay relatively close to shore as the major indexes remain rangebound and many stocks are hit and miss—but we are impressed given the resilience shown after some worrisome headlines, and earnings season has gone fairly well so far. Today and tonight, we’re making a few small moves: On the sell side, we sold one-third of our AppLovin (APP) stake today and, tonight, will sell half of our On Holding (ONON) position—but we’ll also buy an additional 3% position to Duolingo (DUOL) and start a half-sized stake in DoorDash (DASH). All told, we’ll still have a mid-40% cash position, but we could do more buying if the recent resilience leads to clear buying.

Today’s recommendation continues to look like the market’s top networking-related play, as it’s one of the only firms out there that’s firing on all cylinders.

Despite the self-induced recession, the stay-at-home economy is booming thanks to companies that are letting employees work from home—and even after things go back to normal, it’s likely some of this new workplace flexibility will be here to stay.

This week, Cabot Profit Booster features a top new-economy recommendation in the fast-growing social media space whose stock is just short of its all-time high.

The 2-year bear market in biotech stocks has some trading for less than their cash on hand. Here are 3 I like.