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There continue to be lots of crosscurrents in the market, with many stocks chopping around, lots of big earnings moves (in both directions) and a few leaders from this summer coming under pressure. Overall, though, the bull market is intact, so the lesson from the action is to pick your spots and remain selective when doing new buying. As for your winners, you should give them a chance to breathe, but it’s also important to have mental stops in place—we’re still seeing plenty of rotation out of this summer’s highfliers and into other stocks and sectors.

This week’s list has few stocks that are on most investors’ radar screens, which we view as a good thing. Our favorite of the week is WisdomTree (WETF), a smaller Bull Market stock with a unique story and huge growth numbers.

Stock Name	Price	Buy Range	Loss Limit
United States Steel Corporation (X)	0.00	25-26.5	21-22
WisdomTree (WETF)	0.00	13-14	11.5-12
Trinity Industries (TRN)	0.00	50-52	47-48
Taser (TASR)	0.00	15.5-17	13-14
Las Vegas Sands Corp. (LVS)	0.00	68-70	62-64
Gilead Sciences (GILD)	75.10	68-71	63-64
CARBO Ceramics (CRR)	0.00	114-122	100-102
BE Aerospace (BEAV)	0.00	79-82	74-75
CR Bard Inc. (BCR)	0.00	133-136	126-127
Amazon.com (AMZN)	2.00	345-355	328-332

The market took a hit last week, as Washington’s ineptitude continued to grab the headlines and cause investors to raise cash and book some profits. The action wasn’t pretty, for sure, but we can’t say it’s changed the big picture—the rally since the mid-November lows is still intact, and many of the stocks and sectors that had been performing well took last week’s dip in stride. Another day or two of big declines would change our outlook, but right here, you should continue to “lean bullish,” holding your better performers and putting some money to work as opportunities arise. You should, however, also hold a decent cash position until we see more power and decisiveness from the market.

This week’s list is almost evenly split between great growth companies and turnarounds, including a couple of well-known names that are looking good. We like many of the charts, but we’ll go with Qihoo 360 (QIHU) as our favorite of the week. The stock is a bucking bronco, but it has great growth and a big story.

Stock Name	Price	Buy Range	Loss Limit
Tenet Healthcare (THC)	0.00	30-31.5	-
Terex (TEX)	0.00	25-26.5	-
Rackspace (RAX)	0.00	69-72	-
Rackspace (RAX)	0.00	69-72	-
Qihoo 360 (QIHU)	0.00	26-28	-
Mohawk Industries (MHK)	0.00	87-89	-
General Motors Company (GM)	0.00	26-27	-
FLSR (FLSR)	0.00	28-30	-
Equinix, Inc. (EQIX)	547.73	198-205	-
3D Systems (DDD)	0.00	48-50	-
Bank of America (BAC)	0.00	10.8-11.4	-

Current Market Outlook


Today saw another rotation day, with strong selling showing up among leading growth stocks while the broad market was relatively flat and some areas (financials, energy) perking up. As usual, we’ll see if today is the start of something more pronounced; the Nasdaq bumped up against its early June highs this morning, so if the selling continues, we could be looking at an intermediate-term top. However, it’s too early to conclude that—most major indexes remain in clear uptrends, as do the vast majority of leading stocks despite a few bouts of selling in recent weeks. Thus, we remain mostly bullish, holding our winners and looking to hop on new leadership that’s emerging.

This week’s list has another batch of strong growth-oriented stocks, and encouragingly, many are new names from sectors that have recently come to life. Our Top Pick is Celgene (CELG), which looks like a big-cap leader of the new uptrend in biotech stocks.

Stock Name	Price	Buy Range	Loss Limit
Autohome (ATHM)	98.65	43.5-45.5	40-41
Celgene (CELG)	0.00	130-134	122-124
Clovis Oncology (CLVS)	0.00	88-93	82-83
Paycom Software (PAYC)	0.00	69-72	63-66
Planet Fitness (PLNT)	0.00	22.7-23.7	21.2-21.8
Red Hat (RHT)	0.00	96-100	89-91
Tesla, Inc. (TSLA)	818.87	355-375	326-330
Trivago (TRVG)	0.00	19.5-21	17-18
U.S. Concrete (USCR)	0.00	74-78	67-69
XPO Logistics (XPO)	0.00	59-62	53.5-55.5

Current Market Outlook


The divergence continues, with the broad market looking increasingly weak. Even the rally last week couldn’t lift many stocks off their bottoms. So what comes next? Optimists may claim that low interest rates mean there are no attractive alternatives to stocks, but pessimists will note that divergences such as these seldom end well. Thus our market monitor remains unchanged—in slightly positive territory. You can still make money in this market, but more than ever, skillful stock-picking, combined with proper entry timing, is critical. So we urge you to study numerous individual stocks carefully. Try to buy on normal pullbacks. And above all, keep losses small if a stock doesn’t do what you hired it to do. Today’s roster includes some strong breakouts and a handful of set-ups, and our Editor’s Choice is Vantiv (VNTV), which vaulted out to new highs last week on a positive earnings report and is riding a fine trend of long-term growth.

Stock Name	Price	Buy Range	Loss Limit
Zoës Kitchen (ZOES)	0.00	43-45	39-39.5
WisdomTree (WETF)	0.00	24-26	21-22
Vertex Pharmaceuticals (VRTX)	230.36	135-137	121-123
Vantiv (VNTV)	0.00	42-45	39-40
ServiceNow (NOW)	341.86	76-78	72-73
Masco (MAS)	0.00	24.5-26	23-24
ICON plc (ICLR)	0.00	78-80.5	71-72
Equinix, Inc. (EQIX)	547.73	270-280	260-265
Buffalo Wild Wings (BWLD)	0.00	188-193	174-176
Anacor Pharmaceuticals (ANAC)	0.00	144-151	125-130

Current Market Outlook


Pure and simple, last week was a bad one for the market—not only did the major indexes take hits, but many resilient stocks came under severe selling pressure. The fact that strong, Top Ten-type stocks took hits (leaving fewer stocks in good shape) has us lowering our Market Monitor by a notch, and it’s vital that the repeated waves of intense selling seen last week don’t continue. For now, though, the bigger picture hasn’t changed: The trading range environment and the vicious rotation from sector to sector remains the order of the day. Thus, the general game plan is the same: being selective on the buy side and holding some cash on the sideline—as we wait for the major indexes to show their hand.

This week’s list actually has quite a few solid growth stories, though there’s definitely a bigger-cap tilt to the list. Our Top Pick is one of them—Lockheed Martin (LMT) has just hit new highs and is under strong accumulation as business is set to pick up.

Stock Name	Price	Buy Range	Loss Limit
Ultimate Software (ULTI)	0.00	178-185	168-170
Tesoro (TSO)	0.00	103-106	92-94
Royal Caribbean Cruises (RCL)	0.00	88-92	83-84
Martin Marietta Materials (MLM)	261.52	166-174	155-156
Lockheed Martin (LMT)	0.00	205-211	193-195
Lennox International (LII)	270.56	117-120	108-110
Facebook, Inc. (FB)	0.00	91-95	85-86
BofI Holding (BOFI)	42.93	125-129	114-115
Activision Blizzard, Inc. (ATVI)	0.00	28-29	25.5-26
Arista Networks (ANET)	0.00	80-82	75-76

The markets traded sideways through most of April. But since then, the choppiness has returned—along with worries about the uncertainty regarding the debt ceiling, the expiration of the immigration-limiting legislation, and ongoing debate about the possibility of a recession.

Yet, economically speaking, the trends are still healthy. Manufacturing has held up, employment continues to rise, and job openings are still underutilized (as you can tell if you’ve been in a restaurant lately!).

The economy is steady, but economists are beginning to worry about consumers. For December, retail sales were flat (vs. the anticipated 0.4% rise) after an increase of 0.6% in November. And credit card balances rose 5.5% from last year, to $1.28 trillion, according to the Federal Reserve Bank of New York.

Inflation remained at 2.7%, and unemployment ticked down a bit, to 4.3%. That’s some good news!

Current Market Outlook


The good news is that the general market has been whacked two or three times during the past couple of weeks, but each time has staged a strong rally, including today’s spirited advance. That said, despite the nice Friday/Monday rebound, the intermediate-term trend is still iffy (most indexes are sitting at or below their 50-day lines and below their highs from last week), so our overall stance hasn’t changed much—you should remain cautious, limiting new buying and holding some cash, though we’re also fine sticking with your strong, profitable names, giving them a chance to resume their uptrends down the road. The game plan from here is simple: If the market fades again, we’ll remain cautious, but should the recent strength continue, we’ll gradually turn more constructive and put money to work.
This week’s list (and the past couple of weeks) are great for getting your ducks in a row should the bulls decisively retake control. Our Top Pick is Appian (APPN), which looks like a new small/mid-cap leader following a massive breakout. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
ACADIA Pharmaceuticals (ACAD)	47.84	28.5-30	25.5-26.5
AngloGold Ashanti (AU)	20.45	19.5-20.5	17-17.5
Appian (APPN)	46.48	55.5-58.5	48-49.5
Dexcom (DXCM)	421.36	160-164	148-150
eHealth (EHTH)	122.74	103-107	91-93
Five9 (FIVN)	78.35	60.5-63	54.5-56
JD.com (JD)	39.58	30-31.5	27-28
KLA Corp. (KLAC)	158.80	135-138	124-126
Q2 Holdings (QTWO)	80.81	87-90	78-80
Universal Display (OLED)	187.54	208-216	182-186

Current Market Outlook


Not much happened last week, with the major indexes up a fraction of a percent and most leading stocks in a similar boat. But to us, that was a good thing—the fact that stocks held up following the prior week’s romp higher and a bunch of bad news (Iran tensions) and upcoming uncertainties (Fed meeting and G20 powwow) at least shows sellers didn’t pounce on the opportunity to bail. As we wrote last week, there’s more positive evidence than negative evidence, which is why we’re leaning bullish—but the intermediate-term trend of the major indexes and many stocks and sectors has yet to turn positive, so we’re also not pounding the bullish drums. Holding your strong stocks and nibbling on some good-looking charts is fine by us, but we also advise sitting with a chunk of cash and patiently waiting to see if the market can follow through on its recent strength.
This week’s list is a bit broader than those we’ve seen recently, with a lot of good charts and growth stories. Our Top Pick is Blackstone (BX), which has shown great power of late.

Stock Name	Price	Buy Range	Loss Limit
AngloGold Ashanti (AU)	20.45	14.6-15.4	13-13.5
Blackstone Group (BX)	49.12	42-44.5	38-40
Boot Barn (BOOT)	43.24	31.5-33.5	27.5-29
Casey’s General Store (CASY)	165.73	148-153	136-138
Haemonetics (HAE)	136.59	107-111	98-100
Innovative Industrial Properties (IIPR)	214.38	104-110	91-94
Mirati Therapeutics (MRTX)	104.98	94-98	81-83
Penumbra Inc. (PEN)	173.25	161-166	147-150
Trade Desk (TTD)	468.02	237-244	212-215
Universal Display (OLED)	187.54	169-175	153-156

This is the week of the debt ceiling deadline, and while it appears Washington is coming close to a deal, nothing is final yet. And that means continued uncertainty in the days ahead, so be sure to continue following the evidence. Thus far, the evidence remains encouraging: most stocks are in good shape, and while some abnormal activity was spotted last week, the bulls have stepped up to the plate since. We remain in a “lean bullish” stance, holding some cash but also holding our best performers and looking for new buys on dips.

This week’s list highlights the newfound strength in energy stocks—there’s four of them featured this week. Our favorite is Continental Resources (CLR), which we think is an emerging blue chip in the sector, though all of its energy peers also have solid prospects.

Stock Name	Price	Buy Range	Loss Limit
Yandex (YNDX)	0.00	36.5-38	33-34
Melco Crown (MPEL)	0.00	32-33.5	28-30
Cheniere Energy (LNG)	63.82	34-36.5	30-32
HCA Healthcare (HCA)	137.60	45-46.50	39-40
Facebook, Inc. (FB)	0.00	47-49	43-44
Dril-Quip (DRQ)	0.00	113-115	109-110
Carrizo Oil & Gas (CRZO)	24.03	40.5-42.5	36.5-37.5
Continental Resources (CLR)	66.19	108-112	100-102
Infoblox Inc. (BLOX)	0.00	41-43.5	36-37
ARM Holdings (ARMH)	0.00	46-48	43-44

In the month since the broad market began to weaken, the losers have been interest-rate sensitive securities; investors clearly fear that rates will rise further. But who are the winners? Interestingly, there is no one strong sector resisting the decline. Rather, numerous strong stocks in a variety of industries are being supported by investors. But more and more, these stocks are failing to hit new highs, so the big picture is one of growing weakness overall, and this is reflected in the less bullish status of our Market Monitor. You can still make money in this market, but more than ever, skillful stock-picking, combined with proper entry timing, is critical. So we urge you to study numerous individual stocks carefully. Try to buy on normal pullbacks. And above all, keep losses small if a stock doesn’t do what you hired it to do.

Our Editor’s Choice today, Lions Gate Entertainment, is a lower-risk selection with a good long-term growth story, and a timely entry could work out very well.

Stock Name	Price	Buy Range	Loss Limit
Trulia (TRLA)	0.00	42-45	37-38
Sealed Air (SEE)	0.00	29-30	25-26
Questcor Pharmaceuticals (QCOR)	0.00	60-63	56-57
Pandora Media Inc. (P)	0.00	18-20	15-16
LightInTheBox Holding Co., Ltd. (LITB)	0.00	18-20	15-16
Lions Gate Entertainment Corp. (LGF)	0.00	32-33.5	28-29
Ctrip.com International Ltd. (CTRP)	34.94	43-45	39-40
Cornerstone OnDemand (CSOD)	51.01	49-51	45-46
Celldex Therapeutics (CLDX)	0.00	19-20	16-17
Baidu (BIDU)	0.00	130-135	118-120

Let’s turn our attention to additional profitable opportunities

In that light, I added four extra stocks at the end of this month’s issue; bonus stocks that won’t permanently join the portfolios, but nevertheless offer excellent money-making opportunities today.

Today’s featured stocks include four companies that should benefit from the post-Hurricane Harvey rebuilding process.

Current Market Outlook


Today was a welcome day for leading growth stocks, with many bouncing nicely after nearly two weeks of sliding steadily (despite the Dow’s advance during that time). Overall, the situation remains mostly bullish, but tricky—the major indexes are in uptrends and many stocks are in good shape, but we’ve also seen quite a few breakdowns among Top Ten stocks during the past couple of weeks, while many stocks moving to new highs have quickly found selling pressure. All told, we’ll leave our Market Monitor in bullish territory because the majority of evidence remains on the positive side of the ledger, but we’ll be watching to see if today’s strength in leading stocks continues or the choppy conditions return.

This week’s Top Ten has a bunch of impressive charts (including some multi-year breakouts) from a variety of industries. Our Top Pick is GrubHub (GRUB), whose story has improved and whose stock has exploded out of a two and a half year consolidation. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
Aaron’s (AAN)	74.35	44-46	41-42
Ameriprise Financial, Inc. (AMP)	0.00	142-147	131-134
Arista Networks (ANET)	0.00	165-173	152-156
Baidu (BIDU)	0.00	222-229	203-207
Baozun (BZUN)	44.24	30.5-32.5	28-29
GrubHub (GRUB)	140.03	50-53	45-47
Lumber Liquidators Holdings, Inc. (LL)	0.00	33.5-36	29.5-31
Rockwell Collins (COL)	0.00	119-122	108-112
Spirit AeroSystems (SPR)	92.54	69-72	62-65
WTW (WTW)	100.47	39-42	35-36.5

The bull market keeps rolling along, though both the Fed and a busy, star-studded earnings slate could provide a couple speed bumps this week. Still, I wouldn’t bet against this market right now, at least not in the intermediate or long term, so today we’re adding another high-upside pick. It’s a mid-cap software stock that’s trading well below its post-IPO highs, but that has built up a full head of steam the last two-plus months. It’s a new addition from Cabot Early Opportunities Chief Analyst Tyler Laundon.

Details inside.

Stocks rebounded nicely last week, giving hope that the 2023 stock market may be far more resilient than the 2022 market – which could eventually get us out of this bear market malaise. That makes it a good time to buy one of the blue-chip tech stocks that were infamously beaten into submission by last year’s indiscriminate selloff in all things technology. Fortunately, Tyler Laundon is recommending just such a stock – a name this is familiar to all, and yet is embarking on some exciting new ventures that the general public might not be fully aware of. Today, we add this mega-cap technology giant to the Stock of the Week portfolio.

This week’s update is a day early, because the rest of the week is filled by the Cabot Wealth Summit, which brings all our analysts to Salem to meet subscribers face-to-face and fix all the world’s problems—or at least help them become better investors.

In the meantime, the market remains under pressure, with our intermediate-term market timing now negative. Thus I’m continuing to raise cash, by selling our worst performers, and you should too, so you’ll have ammunition to use on the new leaders when the market turns up again. This week that means selling four stocks.

As for the new recommendation, it’s a small-cap stock in the communications software industry that you probably haven’t heard of, but it’s shrugged off the market volatility lately, trending slowly higher, and its long-term prospects are great.

The past week was one of the most fun in a while! But you can’t rest on your laurels in this business; just when you start to congratulate yourself is when the market comes around to slap you down. Today I’m dialing back the risk a bit with a conservative growth stock that you almost certainly know, and which is at a decent buying point.

Last week I downgraded four stocks to Hold, and this week I recommend selling two—one for a fat profit and one for a quick loss. Still, because I keep adding a new stock every week, that leaves nineteen stocks in the portfolio, and most of them are acting very well!

As to this week’s recommendation, it’s a real wild card, a recent Chinese IPO that has been spun off from one of the big Chinese leaders. Risk-averse investors might want to give it a pass, or at least wait until there’s an established uptrend, but if you can handle the risk, buying down here might work out really well!

The long-term trend of the market remains up, while the intermediate trend remains down, though the current rally is working to change that—and may well succeed. In any case, we’re seeing growing numbers of strong stocks, and today’s recommendation is one of them.

It’s a little-known technology stock providing a valuable public service, with a high rate of recurring income. I think you’ll like it.