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While the big-cap indexes were acting fine, we had been writing about an increasing number of yellow flags out there—it started with secondary measures like sentiment (which got buoyant in the weeks after the election), and early last week, we saw the first signs that some key leading stocks were coming under pressure. Indeed, we came into this week with our Market Monitor down to a level 6.

Small-cap stocks continue to act extremely well, and we have a new all-time high for the S&P 600 SmallCap Index. It hit 1,520 on an intra-day basis on Monday, then closed at 1,545. Both levels surpass the previous all-time high of 1,477 from November 2021.

The index is hanging tight to those levels today too, trading near 1,537.

Although trade talks are underway and global conflict has seized the headlines, the U.S.-China rivalry is as intense as ever. Here are the stocks to buy and avoid, plus resources to learn more.

It’s been yet another mildly positive week for the major indexes, with just about everything up in the 0.5% to 1% range coming into Friday. Once again, that keeps the intermediate-term trend of the market pointed up, which, combined with the many other positive current (broad market healthy, defensive stocks lagging) and big-picture (blastoff indicators flashing green from May and June) measures, the path of least resistance remains up.

The S&P 500 broke back above the 6,000 level for the first time since February last week as the indexes are now within striking distance of their all-time highs (though they do have some work to do). By week’s end, the S&P 500 had gained 1.5%, the Dow had rallied 1.2% and the Nasdaq had advanced by 2.2%

Early last week was fairly quiet as stocks went mostly nowhere until anxiety ramped higher on Friday on tensions rising in the Middle East. By week’s end the S&P 500 had fallen 0.4%, the Dow had lost 1.3%, and the Nasdaq declined by 0.6%.

The recent bull run continued last week, this time led by Small Caps (IWM), which gained 3.5%, followed by a gain of 2.3% for the Dow, and 1.7% for both the S&P 500 and Nasdaq.

The management team at Enovix (ENVX) has been busy.


Late last week, the company announced a $60 million share buyback program. Then yesterday, the company released preliminary Q2 results that came in slightly better than management guidance.

While the gains/losses in the three major indexes were mostly muted last week, there was some interesting rotation out of the AI/Semiconductor theme and into recent underperformers … though this is hardly anything to write home about as it was just two days of this type of action.


By week’s end, the S&P 500 had gained 0.65%, the Dow had risen by 1.75%, and the Nasdaq had fallen marginally.

We’ve seen plenty of split tapes in our day, but this one is about as divergent as we can remember, and this week was another example of it playing out. Coming into today, the big-cap Nasdaq was up about 3% on the week while the S&P 500 was up 1.5%—but outside of a couple of growth measures, the rest of the market was flat (up 0.5% to down), and that’s before what looks like a down opening this morning.

Somewhat quietly, the Dow has rallied eight straight days, and is leading the market higher as of late. Such is the rotation of the market, especially during earnings season.

For the week the S&P 500 gained 1.4%, the Dow rallied 1.75% and the Nasdaq gained 1%.

After falling 4-6% two weeks ago, the S&P 500 and Nasdaq bounced back by 2-3% last week. Quite the whipsaw! By week’s end the S&P 500 had gained 2%, the Dow had risen marginally, and the Nasdaq had added 3.3%.

Critical metals like copper, aluminum and even silver are commanding headlines, thanks to their uses in high-demand applications pertaining to the AI datacenter/infrastructure buildout trends. But lost in the shuffle is what some analysts are calling the “forgotten metal”—nickel. The base metal is heavily used in high-energy battery applications, including for its use in boosting range in EV lithium-ion batteries—particularly with long-range or premium vehicles—with high-nickel batteries currently dominating EV markets in North America and Europe.

January is usually tricky and hectic, and 2026 was no exception, with a lot of ups and downs and rotation into and out of stocks and groups, including a lot of it on news-driven action. For the most part, the story remains the same, with the broad market looking good but with the big-cap indexes mostly sideways ever since their October peaks while growth stocks mostly lag.

Note: Due to the Labor Day market holiday next Monday, you will receive your next Cabot Profit Booster issue on Wednesday, September 4.

Before we dive into this week’s covered call idea, we need to address our four August positions that expired a week ago.

For the second straight week growth stocks got hit hard, which weighed on the Nasdaq. Though interestingly, as money rotated out of the 2024 leaders, it raced into slow and steady stocks that have been left behind in years past. By week’s end the S&P 500 had lost 1%, the Dow had gained 1%, and the Nasdaq had fallen 3.5%.

The world of crypto is new and exciting, but there are some important things to learn before you start trading cryptocurrencies.

Not all beaten down large caps are bargains, especially in the tech realm. But these two mega-cap value stocks have a key stamp of approval.

Healthcare has been the best stock market sector of 2017, with small caps leading the way. Here are three small-cap healthcare stocks I like best.

One of our stocks reported Q1 results this morning that came in better than expected. Even though the stock ran up 20% in the week leading up to the earnings report, shares blew through their prior all-time high following the report. Shares are trading between 10% and 15% higher at mid-day today, which pegs our current gain at 30% to 35%.