Search

I’m adding BorgWarner to the Buy Low Opportunities Portfolio today, and I encourage you to buy at the current price.

This note includes our review of earnings from Mattel (MAT) and Nokia (NOK). Next week starts the deluge, with Vodafone (VOD), Dril-Quip (DRQ), General Electric (GE), Xerox (XRX), Polaris Industries (PII), Holcim (HCMLY), Kraft Heinz (KHC), M/I Homes (MHO), Lamb Weston (LW), Janus Henderson Group (JHG), Shell (SHEL) and Newell Brands (NWL) reporting.

There were no ratings or price target changes this week.

Now that the stock market correction finally arrived, I want to sketch out what investors can expect in the near future.

Here are four traps for your retirement account and two ways which will help you avoid them.

The market took a few lumps last week but is recovering nicely today. We’ll see which direction it goes from here now that third-quarter earnings season is winding down. Yet again, earnings did more help than harm, providing a floor for stocks to help counteract some of the unfavorable headwinds (high valuations, record-long government shutdown, accelerating job cuts by major corporations) threatening to derail them. Today, we add one of the bigger earnings season winners, a mid-cap biotech that has been beaten up for a couple years but is staging a comeback that got a welcome boost from its late-October report. It’s a stock that got Mike Cintolo’s attention in Cabot Top Ten Trader.

Details inside.

First off, a quick note: Due to our regular schedule (50 weeks a year), there won’t be a Movers & Shakers update this shortened week, or a Top Ten issue next Monday—but we will send out a Movers & Shakers update next Monday and will be around all next week if you have any questions. Have a fantastic Thanksgiving!

Nothing much changed with the market last week: The major indexes were down, but not severely, and the intermediate-term trend continues to point up. That said, under the surface, it remains a very mixed bag—some areas look great, but there are as many (or more) wobbly names out there compared to names in solid uptrends. We’ll keep our Market Monitor at a level 5 this week, though we’d like to individual stocks act better soon.

This week’s list is heavy on old world companies, though there are a few great-looking growth names, too. Our Top Pick is in that space and has shown great power before and after its recent earnings report.

Market volatility and weakness accelerated this week through Wednesday though U.S. Senate passage of a “bailout” measure may lead to a rebound on Thursday. In general, you should sell into strength and cautiously buy into weakness. Our emerging market signal is decidedly negative with the EEM down to 30 from a mid-January high of 46. It has not been at this low a level since early 2016 and got down to 20 at the bottom of the global financial crisis in 2008. Today we do a little selling, increase our S&P 500 Inverse ETF position marginally and add JPMorgan (JPM) to the watch list.

The latest issue of Cabot Marijuana Investor is now available, with my current advice on the fifteen stocks in the portfolio.

While coronavirus fears infect the broad market, the good news is that marijuana stocks seem to have an immunity, mainly because they already had their correction last year. Many stocks in the sector are looking better, and I’m now recommending averaging up in three stocks already in the portfolio.



These changes will reduce the portfolio’s cash level to roughly 12%, so we will be well positioned to benefit from the sector’s resumption of its big uptrend.



Full details in the issue.

A Bloomberg article implies that Chipotle Mexican Grill (CMG) is struggling financially. Yet the fact is that Chipotle is a wildly profitable company, with aggressive earnings growth, and without a trace of long-term debt. That’s quite a feat in corporate America.

With uncertainty swirling around the proposed acquisition of U.S. Steel by Nippon Steel, how can investors profit from the possible outcomes?

Here some of the most common questions Mike Cintolo gets from the readers of Cabot Top Ten Trader.

Friday was an encouraging day, not just because the indexes were up—for the first time in a while, we finally saw a few stocks that were holding up well really pop higher. However, does that change what we’re thinking? Not yet—from a top-down perspective, the intermediate-term trend remains for the indexes and the vast majority of individual stocks. The way we’d think about it is that what we’re seeing out there is a good first step, but the market will have to show more to gain enough momentum for a sustained advance. We’ll leave our Market Monitor at a level 5 for now.

This week’s list targets many of the stocks that are perched near (or are already hitting) new high ground. Our Top Pick is leading a possible new group move in cybersecurity stocks—you can start small here, though we prefer to look for pullbacks as selling on strength is still the norm in the market.

The market bounced back quickly from its recent dip, but signs point to further weakness ahead. Insider buying in these five stocks makes them worth watching when it happens.

In the midst of another stock market correction, it’s important to know how to distinguish between good buy-low candidates and lost causes.

Explorer stocks had a mixed week due to weaker market and some profit taking as SQM reported another strong quarter with earnings up 857% year-over-year. Positive second-quarter corporate earnings reports and the flattening of still-high inflation seemed to settle investor nerves and despite this week’s pullback, the S&P is up 17% from its June lows. This week we go to a big resource play on a strategic growth trend that is powered by Dr. Copper.

The market was looking pretty good through last week. Then this week, with no meaningful progress on the debt ceiling, momentum has deteriorated.


Yesterday afternoon U.S. House Speaker McCarthy was on a roll, saying that things are going a little better, that he won’t put a bill on the floor that spends more than last year and that the President is realizing he has to spend less.



JPMorgan says they put the odds of no debt ceiling deal by early June at around 25% and rising.

The “Golden Cross” and “Death Cross” are two moving average crossovers that many technical analysts watch. Here’s what happens when you trade off them.

The stock market’s advance slowed a little this week, but the major indexes are still at all-time highs. Strangely enough, after declining for most of September, utilities have been one of the best-performing sectors over the past five days. Technology and real estate are also outperforming.

With today’s note, we make changes to ratings on two stocks (Macy’s and GE Healthcare Technologies), discuss the earnings report from Walgreens Boots Alliance (WBA) and provide updates on several recommended stocks.