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How to Make Money in the Age of U.S.-China Rivalry + 3 Global Stocks to Buy Now from Carl Delfeld, Chief Analyst of Cabot Global Stocks Explorer, Carl talked about global stocks in this political climate. PLUS Carl shares 3 of his global picks!

January has lived up to its billing so far, with lots of ups and downs among individual stocks and sectors based on a variety of news, rumors and, starting today, some Q4 pre-announcements linked to upcoming conference presentations. Even so, while the action is hectic, the underlying evidence is the same as it has been for the past few weeks: The intermediate-term trend of the major indexes is positive, not powerful, while for individual stocks and sectors, many are acting well, but it depends where you look. If we see a shift in the evidence, we’ll shift our stance, but until then, we’re leaving our Market Monitor at a level 7.

This week’s list is a potpourri of ideas from a variety of different areas that have come into favor this year. Our Top Pick is a solid growth story in the strong aerospace/defense area with big earnings coming. Shares boomed out of a base last week—try to enter on weakness.

All in all, the evidence remains unchanged: The major indexes are positive but not exactly powerful, with resistance (such as near 500 on QQQ) still capping many measures, but leadership remains intact, with strong stocks refusing to give much ground and fresh breakouts from the past month acting well. Of course, earnings season is still ongoing, and you can never rule out the market’s key leadership being dented or some abnormal action appearing. But you can always find something that could go wrong in the market—right now, the buyers are in control. We’ll keep our Market Monitor at a level 8.

This week’s list is very broad, with everything from industrials to real estate to true-blue growth stories. Our Top Pick is a pure cyclical name that just busted out of a long-term consolidation on giant volume.

The vast majority of our work is based on the trends of the major indexes and the action of leading stocks, and on those two fronts, things look very good; we’ve even seen the broad market perk up after a tough stretch, too, which helps the cause. About the only thing to worry about here is that ... there’s not much to worry about, and that many leading stocks are showing some near-term exhaustion patterns. Big picture, we’re moving our Market Monitor back to a level 8, but you should still keep your feet on the ground, looking for decent entry points in strong stocks.

This week’s list has a lot of stocks that not only have excellent overall charts but have either consolidated calmly for the past few weeks—or have shown outstanding buying volume in recent days. Our Top Pick is one of the latter, gapping up to new highs last week on earnings.

Starting a month ago, we began to see some leaders chop around, then we saw more short-term froth appear followed by Nvidia’s monstrous reversal last Friday. We’re not making any grand declarations here, but overall, most of the “extended” leaders are being tested, with more than a few wobbling and zeroing in on intermediate-term support and a few already cracking. Now, with that said, most of the other evidence remains fine, whether it’s for the overall market or for “fresher” leadership names, which continue to act well. We’re leaving our Market Monitor at a level 7, but how things play out over the next few sessions will be key.

This week’s list mostly lives outside the tech arena, with many names that have recently taken off and some that are pulling into areas of support. Our Top Pick is blasted off in late January, enjoyed a big run and is now shaking out normally.

Current Market Outlook


It was a relatively quiet, but bullish, pre-holiday week, with the major indexes acting well and many stocks resting nicely. That said, there was still rotation evident, with growth stocks finally easing a bit while money sloshed into some other areas, before that situation reversed today. Overall, not much has changed with our thoughts—we’re generally encouraged, and actually think further pullbacks in growth titles could provide some tempting entry points (the Nasdaq is pretty extended short term), though there remains plenty of tricky and narrow action (just over half of all stocks are even above their 50-day lines and there are lots of potholes on a daily basis), so picking your stocks and buy points is important. We’ll keep our Market Monitor at a level 7.

This week’s list has a nice collection of stocks from different sectors and themes that have all shown some good-volume accumulation of late. Our Top Pick is Carvana (CVNA), which is near the top of a six-month launching pad.

Stock Name	Price	Buy Range	Loss Limit
Asana Inc. (ASAN)	69	61-65	52-54
BioCryst Pharmaceuticals (BCRX)	16	15.6-16.4	13.4-13.8
Carvana (CVNA)	316	300-310	270-275
Diamondback Energy (FANG)	91	88-92	80-82
International Game Technology (IGT)	23	22.5-24	19.5-20.5
Ford Motor Co. (F)	15	14.2-14.7	12.6-12.9
Roku, Inc. (ROKU)	435	420-440	370-380
Snap Inc. (SNAP)	69	67.5-69.5	60-61
Tempur Sealy (TPX)	41	39.5-41	35.5-36.5
Urban Outfitters (URBN)	40	38.5-40	35-36

Current Market Outlook


With the major indices in record territory and the leading growth stocks showing strength, it’s hard to be anything less than bullish right now. Even at these elevated levels, the market has provided us with a few attractive entry points recently. But with earnings season well underway and sentiment still elevated, the potential for near-term volatility has increased. Thus, it’s imperative not to throw caution to the wind in this news-sensitive environment. Given the weight of evidence, being selective when buying is the preferred tactic. The dominant intermediate-term trend is clearly up, though, so you don’t want to be too defensive. We’ll keep our Market Monitor at 7 and see how things go from here.

This week’s list has a nice mix of stocks across several industries benefiting from different trends. Our Top Pick this week is CarParts.com (PRTS), which recently had a high-volume breakout from a huge basing pattern.

Stock Name	Price	Buy Range	Loss Limit
Agilent Technologies (A)	128	127-129	121.5-123
Analog Devices (ADI)	160	156-161	149-151
CarParts.com (PRTS)	21	19.5-22	17-18
Chegg (CHGG)	112	105-111.5	97-100
eXp World Holdings (EXPI)	80	74-79	62-65
Freeport-McMoRan Inc. (FCX)	33	31-33	27.5-28
Johnson Controls International plc (JCI)	53	52-54	49-50
Pinterest (PINS)	89	85.5-88	76-78
Square, Inc. (SQ)	276	263-273	240-250
Twitter (TWTR)	74	68-72	63-66

Last week brought some renewed chop and crosscurrents, with broader indexes finding some sellers and a few stocks hitting potholes before or after earnings. Moreover, we’re seeing indications that complacency has made a quick comeback, and with many good-looking stocks set to report earnings over the next two weeks, some near-term selling wouldn’t surprise us. Even so, all of this looks normal in the context of where the market has come from: The prior three weeks were excellent, the intermediate-term trend is pointed up and the vast majority of stocks are acting well. Could we see another change in character, with the market falling back into its spin-cycle ways of 2021? It’s always possible, but we go with the weight of the evidence, which today remains mostly positive. We’ll leave our Market Monitor at a level 7 today.

This week’s list is another well-rounded one, with some recent earnings winners and stocks from a variety of industries. Our Top Pick is Enphase Energy (ENPH), which appears to be getting going from a deep base after earnings. We prefer entering on a bit of weakness if possible.

Stock Name	Price	Buy Range	Loss Limit
Albemarle Corporation (ALB)	256	247-257	220-225
Bonanza Creek Energy (BCEI)	56	52-55	46-48
Coinbase (COIN)	331	305-320	267-277
Dexcom (DXCM)	627	605-630	535-545
Enphase Energy (ENPH)	240	220-232	190-196
J.B. Hunt (JBHT)	196	191-197	178-181
Medpace (MEDP)	226	212-222	192-196
Marvell Technology Group (MRVL)	69	66-68.5	60-61.5
SLAB (SLAB)	193	182-192	160-165
WOLF (WOLF)	131	123-129	101-105

This week’s Friday Update includes our comments on earnings from Wells Fargo & Company (WFC). We had no price target or ratings changes this week, although we are reviewing Wells Fargo shares as they trade above our price target.

The overall market and most growth stocks have stabilized in recent days but there are still some yellow flags. Our 50%-plus cash position is a bit too high so we’re going to change that tonight by adding one new position and buying a bit more of another.

The divergences that I mentioned in our last update disappeared last week, as the major indexes all rose over 3%, notching five consecutive positive days to hit record highs. I have one rating change today: Pembina Pipeline (PBA) moves to Buy thanks to renewed technical strength.

Happy St. Patrick’s Day! After the Fed for the first time since 2018 raised benchmark rates, stocks surged yesterday. The question remains whether the Fed can get a handle on inflation without tipping the economy into a recession. Rock-bottom Chinese stocks also got a lift yesterday as a Chinese regulatory agency indicated its support of U.S.-listed Chinese stocks. Emerging markets and fintech remain out of favor but we go there today for a Warren Buffett-backed, aggressive idea that is a play on both of these themes.

As expected, America’s central bank, the Federal Reserve, raised its benchmark interest rate 0.75% for the second straight meeting in an effort to beat down inflation that’s been running at a four-decade high.