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The market’s main trend remains up, but the crosscurrents are getting fierce! So today I’m selling four stocks (two for good profits and two for small losses), all in an effort to keep the portfolio full of stocks whose potential upside justifies their potential downside.
As to this week’s recommendation, I’m happy to say that it’s a company headquartered in India, which is relatively free of the political turmoil that’s gripped the U.S. recently. Furthermore, given that foreign stocks have underperformed dramatically this year, I’m optimistic about getting on board somewhere near the beginning of a renewed uptrend.

Friday’s big surge upward—200 points for the Dow—was a clear bullish sign, a reminder that there’s lots of cash sitting on the sidelines waiting for a reason to get back into the market, and a reminder that when those billions of dollars eventually do find their way back into stocks, prices will skyrocket! Yet it’s been hard for the market to maintain a strong uptrend as the tug-of-war between stocks and bonds continues. And it’s not the yields keeping people in bonds these days, it’s simply fear. Thus our Market Monitor remains in the neutral zone—which means while it’s fine to target some attractive situations, you should keep some cash in reserve until the broad market is more supportive, and you should continue to practice risk management. That means buying on dips, not at new highs. It means taking some profits off the table when they come easily. And it means cutting losses short when things go against you.

We’re still very enthusiastic about the homebuilding sector, and our Editor’s Choice this week is Ryland, a homebuilder that’s appeared here this year twice before and has great potential to keep on climbing. Also attractive are companies in fertilizer, energy, electronic health records and more. Enjoy the issue and enjoy the summer!

Stock Name	Price	Buy Range	Loss Limit
Agrium (AGU)	0.00	87-90	-
Athenahealth (ATHN)	0.00	78-80	-
Cabot Oil & Gas (COG)	0.00	38-41	-
CLGX (CLGX)	0.00	19-20	-
Marathon Petroleum Corporation (MPC)	0.00	43-46	-
Ryland (RYL)	0.00	23-26	-
Spirit Airlines (SAVE)	57.03	21-23	-
TripAdvisor (TRIP)	55.14	42-44	-
Weyerhaeuser (WY)	0.00	22.5-23	-
Zillow (Z)	76.64	39-41	-

U.S. markets are trading cautiously with the latest uncertainty surrounding the coronavirus pandemic. Chinese markets have surged over the last week and I’ll outline a trading idea to take advantage of the momentum. Our emerging market (EEM) signal is decisively positive as our portfolio moves ahead, led by our Alibaba (BABA) position, up 18% this week, and Sea Limited (SE) continuing its incredible run. Today, we discuss changes afoot in Hong Kong with a new recommendation that is an undervalued throwback blue chip that is also a high-quality proxy for Asian growth.

Last week’s recommendation, Virgin Galactic (SPCE), took off like a rocket and this week we go underground to recommend a premier global company that provides the backbone for future-oriented technologies such as green energy and electric vehicles.

Looking at the big picture impacting global stocks, U.S.-China haggling continues but the NAFTA redo looks like a done deal as we head into the end-of-year rush. As a result, our Emerging Markets Timer (EEM) moved into a stronger bullish position, putting some distance between its 25- and 50-day averages as it moves back towards 44.

The so-called FAANG stocks have led the bull market rally over the past few years. Now, they’re showing signs of weakness. Where does each go from here?

Everybody knows Alphabet, or Google. But sometimes GOOGL stock gets surprisingly undervalued. When it happens, you need to pounce.

One of my favorite forever stocks is a digital payments company that’s taking advantage of growth in one specific market.

Investing in growth stocks requires a big helping of discipline with a side order of patience.

Chinese internet stocks have been beaten down of late, but a bounceback is likely. When it happens, here are two less obvious ways to play it.

Now that Election Day has mercifully arrived, here’s how to hedge the presidential election by trading options--no matter who wins.

“The Air Transport Industry had a solid ranking advance that moved it further away from its five-year low shown six months ago. There was a notable percentage increase in the overall insider buying and similar contraction in their selling. ... Hawaiian Holdings, Inc. (HA) [had] three insider buys,...

Two of our stocks reported earnings last night.

Consumer Staples and Communication Services are two sectors that have held up well in the recent correction. Today, I’ll highlight a stock from each sector.

AST SpaceMobile (ASTS) is up more than 140% so far in 2024. What’s behind the rise of this space-based cellular broadband company?

It’s been said that the four most dangerous words in investing are “this time, it’s different.” The stock market’s behavior is clearly pointing to things being different this time.

I find myself shaking my head when I read the words Efficient Market Theory or Efficient Market Hypothesis (EMH), because my experience doesn’t jive with that concept.

Today’s featured stocks include two new additions to the portfolios and a stock that seems ready for a huge price rebound.

Stocks stayed the course this past week, holding near all-time highs despite myriad existential threats out there (expanding Middle East war, a toss-up presidential election two weeks away, Q3 earnings season underway, etc.). Clearly, the bulls are in control right now. That can change at the drop of a hat – or an unexpected news event. But we have to go with the evidence in front of us, and right now it’s saying, “Buy.”

But it does make sense to add some better values to the portfolio. And this week we do just that, adding an undervalued small-cap utility stock that recently caught the eye of Clif Droke, Chief Analyst of the Cabot Turnaround Letter.

Details inside.