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Natural Grocers (NGVC) should have a decent day (+20% in early hours trading) after Q2 earnings beat expectations. Revenue grew 9.0% to $335.8 million (a $6.1 million beat) while GAAP EPS of $0.56 grew by 60%. Daily average comparable store sales grew by 8.9%. This was a very strong quarter.

The selling in growth stocks seen under the surface last week accelerated this week, with the Nasdaq off nearly 2.5% coming into today, while the S&P 500 took a smaller hit (1.2%). Meanwhile, broader measures were down some but held up far better as the rotation theme continued.

It’s been another decent week for the market, but also very mixed, with the broad market indexes (small and mid-caps) up 1.5% to 2% or more, while the big-cap indexes are flat-ish.

It’s been a volatile week, starting out with Monday’s slide on the Greenland-related tariff threat, only to see a decent rebound after that. Overall, coming into today, the major indexes haven’t done much, with some broader indexes up a bit but most others are flat to down a smidge.

This week’s recommendation is a low-risk financial stock with decent prospects that is temporarily low because it lost what investors mistakenly believed was a key client. If you buy now you can get capital appreciation plus a modest dividend.

A Joe Biden win is becoming increasingly likely, and that could mean a big bump for infrastructure stocks - these three in particular.

Most stocks on the Cabot Undervalued Stocks Advisor recommended list had strong performance this past week. Part of the strength was perhaps due to money managers’ general optimism that seems to brighten with turn of the calendar. With last year’s bonuses firmly in the bag, professional investors often view January as the start of a new clock. This translates into a higher tolerance for risk-taking, as there are nearly 12 months ahead to make up for any mistakes. Cyclical and value stocks tend to be major beneficiaries of this optimism.

The evidence has improved during the past couple of weeks, with our Two-Second Indicator looking much better and, importantly, a Three Day Thrust signal (one of our Blastoff Indicators) flashing green last week, both of which prompted us to put a little money to work last week. Still, while that’s definitely a feather in the bulls’ cap, the primary evidence remains negative, so we’re continuing to hold plenty of cash while setting our sights on next week: If our Tides turn positive and many potential leaders gap on earnings (there are tons of names reporting next week), we’ll definitely be putting a good chunk of money to work ... but as always, we’ll take it as it comes, which today means going slow but staying flexible should the market’s recent good vibes accelerate.

The rally continues, but it is definitely losing steam; odds are that the market will see more downside action soon, so if you’re heavily invested, you should think about lightening up.

At the same time, there are pockets of strength developing, so if you’re perhaps underinvested, several of the portfolio stocks deserve a hard look.

There’s something unusual and significant afoot in the bond market so I’m going to pluck my Goldman Sachs update out of the Growth Portfolio updates, and put it right here in the intro so that nobody misses what’s going to be happening soon.

The market is strong, and the strongest sector of all is growth stocks; we have bunch hitting new highs. As to today’s recommendation, it’s a repeat, a stock we owned successfully last year and that looks good to enter again.

In today’s note, we discuss the reasons why it’s a good time to exit our (mostly) profitable holdings in Alibaba Group Holding (BABA), Nokia (NOK), Tyson Foods (TSN) and Zillow (Z).

We’re adding two new stocks to the portfolio, providing us with exposure to the booming software and utilities sectors.

We’ll also discuss some catalysts for three stocks across three different sectors in what look to be powerful intermediate-term turnarounds.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Centuri Holdings (CTRI), Dollar Tree (DLTR), GE Aerospace (GE), Intel (INTC) and Paramount Global (PARA).

Today’s featured recommendation is a low-risk financial stock that will give the portfolio some stability (and income). And since the portfolio doesn’t currently own a bank stock, this will provide some healthy diversification.

Last week was a decisive week, in our view. Not only did the major indexes score solid gains, but many individual leading stocks put on a good show, telling us the bulls are finally joining the party. Of course, with the meat of earnings season still coming up, there are bound to be ups and downs in the weeks ahead. But we’re growing more confident that the bear phase from October of last year through March of this year—punctuated by the collapse of Bear Stearns—is coming to an end. This week’s Top Ten is once again heavy in the commodity areas, which are leading the market higher. We do believe traditional growth stocks will appear if this market is going to run, but for now, the buying is clearly in metals, steels, oil and gas. Our favorite of the week may be a surprise. It’s U.S. Steel (X), a big, old firm, but one that might be best positioned to take advantage of higher steel prices in the months ahead. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
AGU (AGU)	0.00	75-85	-
BUCY (BUCY)	0.00	117-120	-
EAC (EAC)	0.00	43-46	-
HP (HP)	0.00	51-54	-
MEE (MEE)	0.00	49-53	-
MMR (MMR)	0.00	22-24	-
PXD (PXD)	0.00	53-58	-
SOHU (SOHU)	0.00	50-55	-
WFT (WFT)	0.00	76-82	-
X (X)	0.00	145-155	-