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Most automotive stocks are cheap these days. But they’re cheap for a reason - lack of future growth. That said, there are a few gems in the auto industry.

Today I want to start off by giving you 10 nuggets to put in your investing toolkit. These tips won’t be new to longtime readers, but I think it’s always helpful to review classic investing advice from time to time, especially as we approach year-end.

While the S&P 500 has stalled at about the same level since late November, it’s been more exciting under the hood.

The market indexes have stalled mostly because of technology. Those stocks still haven’t fully recovered from the DeepSeek plunge in late January. At the same time, earnings for the rest of the market are catching up.

Fed Week has come and gone, and Jerome Powell and company did just what investors expected them to do, nudging stocks further into record territory. How long the market can keep this up, at least in the short term, is anyone’s guess. But we can only go with the evidence in front of us, and right now it’s a good time to buy. So today, we add another big growth name that has emerged as a leader of the recent rally. It’s a stock that has stood out enough to gain approval from both Mike Cintolo and Tyler Laundon.

Details inside.

Over the past month Tesla (TSLA) has struggled as continued price cuts have boosted sales but narrowed profit margins. It is also failing to live up to its brand as more than just a maker of electric cars (EVs).

Higher interest rates are eating into EV demand. Competition is catching up as Tesla last launched a new passenger vehicle in 2020. In October, BYD (BYDDY) outsold Tesla for the first time.

The intermediate-term trend of most major indexes and most leading stocks is still pointed up, but there’s no doubt we’re seeing much more choppy action, with most leading stocks basically marking time since early February. The good news is that, while we are seeing some sluggishness and a larger number of potholes, there are some areas of the market that are perking up—retail names started to pop three or four weeks ago, and more recently we’ve seen some commodity areas begin to flex their muscles. As we said last Friday, then, it’s not so much that there are major red flags out there, but more that the very bright green light has dimmed some as money starts to slosh around and some uncertainties (like interest rates and the Fed) pop up. We’ll again leave our Market Monitor at a level 7.

This week’s list is heavy in commodities and newer retail names, and our Top Pick looks like it’s leading what could be a group move.

After weeks of ping-pong action, the sellers have finally taken control for the first time since last fall: The intermediate-term of the major indexes has turned down and the broad market has done the same, with more than two-thirds of all stocks now south of their 50-day lines. It’s the same when it comes to leaders—for weeks they had found support at key levels, but now most have cracked intermediate-term trend lines, including the key chip sector, which keeled over this week.

Cabot will be launching a brand new advisory at the end of January. Cabot Dividend Investor will be aimed at income investors.

The market continued to inch its way higher in the two weeks since I last wrote. The Stock of the Week portfolio isn’t inching – it’s soaring. Multiple positions in our portfolio were up double-digit percentages in the last couple weeks, with several others hitting new 52-week or all-time highs. As always, it’s a testament to the elite stock-picking ability of our superb analysts. And today, we add another stock, a familiar name that has regained momentum enough to warrant inclusion in last week’s Cabot Top Ten Trader advisory.

Details inside.

The biotech sector is in full recovery mode, and the best biotech stocks are still on sale. Here’s where you can find them.

While the Russia-Ukraine conflict continues to add a huge amount of uncertainty in global markets we now have a little more clarity on the interest rate environment here in the U.S. after the Fed hiked rates by a quarter point yesterday.

The unwinding of the Japanese carry trade halted the stock market rally in its tracks, but the bullish case for small caps may be even stronger going forward.

While in Amsterdam last week, I visited the Tulip Museum on a whim. It was small, but informative. Before leaving, I bought a book called Tulipomania, less because I’m riveted by tulips than because I was out of reading material and Dutch bookstores were closed for Easter Monday. The book, by...

After a few weeks of solid action that eased most worries, the latest shenanigans in Iraq have reminded investors that the market is a two-way street. Not that the damage has been severe—stocks have generally eased normally since Iraq grabbed the headlines last Thursday—but we’re viewing this as the rally’s first test. If dips in the indexes and individual stocks come on generally tame volume and find support, it will be highly bullish. If not … well, we’ll deal with that if we see it. Right now, the evidence remains clearly bullish, and while the bulls aren’t running wild, many stocks are making solid progress.

This week’s list has a bunch of great stories, as well as a nice mix of newer and older names. Our Top Pick is Restoration Hardware (RH), which is going about business in a unique way, leading to outstanding results. The stock is getting going after a multi-month rest.

Stock Name	Price	Buy Range	Loss Limit
RH Inc. (RH)	252.93	79-84	72-73
VeriFone Systems, Inc. (PAY)	0.00	35-36	32-33
Netflix, Inc. (NFLX)	423.92	410-430	370-380
Health Net (HNT)	0.00	38.5-40	35-36
GT Advanced Technologies (GTAT)	0.00	18-19	15-16
Keurig Green Mountain (GMCR)	0.00	115-121	105-107
Eagle Materials Inc. (EXP)	0.00	90-94	84-85
Con-way (CNW)	0.00	46.5-48.5	43.5-44
Charter Communications (CHTR)	0.00	144-147	134-135
Baidu (BIDU)	0.00	170-175	158-160