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In today’s note, we discuss the recent news developments concerning Nokia (NOK), Vodaphone (VOD), Janus Henderson Group (JHG), Fidelity National (FIS) and B2GOLD (BTG), with a particular emphasis on the latter due to recent precious metal market strength.

This week was all about the Fed. But those of us watching small caps noticed some major news too – the S&P 600 has broken out to its highest level in just over a year.

The catalyst was the Fed’s fully expected 25 bps cut yesterday. It was less of a hawkish cut than expected and included a commitment to buy $40 billion in short-term Treasuries to ease money-market strains that emerged after halting balance-sheet runoff.

Prior to that announcement, the index was toying with a breakout, but afterward it shot up and closed 2.4% higher on the day.

WHAT TO DO NOW: Remain bullish, but continue to keep some of your powder dry. The market remains in a solid uptrend, but more indexes and stocks have been stalling out. To be fair, we are seeing some growth names finally kick into gear, but we still think it’s best to ease off the accelerator a bit as we see how earnings season goes. In the Model Portfolio, we sold Uber (UBER) and bought a half-sized stake in Oracle (ORCL) on a special bulletin Tuesday; tonight we’ll make one small move, adding another 3% position to Rubrik (RBRK), which appears to be emerging from its slumber. We’ll still hold around 30% cash after these moves.

Mike Cintolo, Vice President of Investments and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader will discuss The Best Stocks to Buy in 2021.

Current Market Outlook


While most investors are either bearish, neutral or not paying attention at all, the market remains healthy as a horse—most major indexes reached all-time highs last week, which is music to our ears. And we saw improved action among individual growth stocks, too, with some super-hot names racing higher. As we’ve said repeatedly, pullbacks and shakeouts will occur at some point, and if you have a couple of stocks that are very extended to the upside, feel free to book partial profits. But our focus remains on the intermediate- to longer-term, and just about all the evidence on that front continues to point to higher prices in the weeks and months ahead. Thus, you should remain heavily invested.

This week’s list has a mid-cap focus to it, but our Top Pick is a big-cap stock that just emerged from months of base-building: Alibaba (BABA) has all the makings of a liquid leader, and we think it’s starting its first major advance. Details inside.

Stock Name	Price	Buy Range	Loss Limit
Twilio (TWLO)	183.39	55-60	46-48
Symantec Corporation (SYMC)	0.00	21.5-23	20-20.5
Nevro Corp. (NVRO)	0.00	91-95	84-86
MasTec, Inc. (MTZ)	66.65	27.5-29	25.5-26.5
Inphi (IPHI)	120.16	40-42	36-37
Etsy (ETSY)	112.97	13.5-14.5	11.5-12
Copa Holdings (CPA)	0.00	79-81	71-72
Callon Petroleum (CPE)	0.00	13-14	11-11.5
Alibaba (BABA)	254.81	93-96	89-90
Applied Materials (AMAT)	0.00	26-27	24-25

Current Market Outlook


The big-cap indexes started strong today on news of a new NAFTA deal, but under the surface, we’re seeing continued rotation and signs of degradation. Small- and mid-cap indexes took hits today and remain below their 50-day lines, while most growth stocks continue to act iffy. To be fair, the start of a new quarter often sees many crosscurrents, and most leading stocks, while choppy, remain in uptrends. But we’ve now seen funky action and lots of rotation for over a month, which has our antennae up. We’re moving our Market Monitor to a level 6 and feel the next few days will be telling—if leaders are OK, we expect to see support show up, but if not, the odds of a longer pullback will increase.

As for our screens, we’re still finding a good number of good charts, albeit in a variety of sectors. Our Top Pick today is Allegheny Technologies (ATI), a specialty metals firm that is showing signs of getting going after months of base-building.

Stock Name	Price	Buy Range	Loss Limit
Alarm.com (ALRM)	71.33	55.5-57	51-52
Allegheny Technologies (ATI)	27.78	28.5-30	26-27
Ecopetrol (EC)	22.17	25.5-27	22.5-23.5
Intelsat (I)	25.46	27-29	24-25
Paycom Software (PAYC)	0.00	145-150	136-139
PetIQ (PETQ)	30.82	36-38	33-34
Teladoc, Inc. (TDOC)	127.95	79-83	70-73
Vale S.A. (VALE)	15.40	14.5-15	13.2-13.6
WPX Energy (WPX)	0.00	19.3-20.2	17.4-17.9
Zendesk (ZEN)	82.19	67-70	61.5-63.5

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Big picture, the factors that have been in place for the past few weeks are still hanging around, but we’re also starting to see more names give it a go on the upside—after a rough start to earnings season, more and more are starting to react well and push through some resistance, with others that did get hit snapping back impressively. (Indeed, today’s list is as growth-y as we’ve seen it in a while.) Is it enough to change our stance? No, as we’re leaving our Market Monitor at a level 4, but we’re keeping our antennae up in case the buying pressures spread and more real leaders emerge.

This week’s list has a bunch of strong names with solid numbers and stories, from a variety of industries, too. Our Top Pick is toyed with new highs a couple of times in recent months and now looks to have decisively broken through.

Professional options trader and Chief Analyst of Cabot Option Trader Jacob Mintz shares his years of Wall Street in this StockTwits Q&A session.

In today’s issue, we’re giving some tips about how to handle your portfolio when markets are kicking up a fuss. We also have a new stock pick that takes us outside China and the tech sector, plus the portfolio moves we’re taking to lower our exposure a little.