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Last week the major indices pulled back in a meaningful way. The S&P 500 lost 2.20%, the Dow declined 1.36%, and the Nasdaq pulled back 3.20%.



The benchmark index sank 4.8% in September, marking its worst month since March 2020. It was also the first losing month for the S&P after seven straight months of gains. The outlook didn’t look much brighter Monday as the market saw another bout of losses.

This week I’m continuing to diversify my overall portfolio exposure by adding American subscription-based software company ZoomInfo (ZI).

Last week, despite a large market decline on Monday, the major indices took a baby step forward. The S&P 500 gained 0.51%, the Dow rose 0.62%, and the Nasdaq eked out 0.02%.



The advance came despite ongoing uncertainties around Chinese property developer Evergrande and the seemingly hawkish message from the Fed announcement. Now the focus has shifted to Washington, D.C.’s finest and the decision around the debt ceiling and infrastructure. Add a sprinkle of Chinese power concerns and there seems to be just enough worry to keep investors on their toes.

The bulls continued their winning ways last week, but the advance wasn’t without some jostling. Late in the week several leading growth stocks pulled back, but those declines weren’t enough to keep the bulls from another weekly victory.

The S&P 500 gained 0.93%, the Dow advanced 0.78% and the Nasdaq rose 1.11%.



To put this market run into perspective, the current rally has lasted 189 days, basically nine months, without a 5% pullback. Additionally, there have been 43 days of a recorded new high.



So, my stance hasn’t changed too much. I continue to take a cautious but optimistic approach.

There’s no doubt it has been an incredible year for the market. The S&P 500 has witnessed five straight months of gains while simultaneously carving out new all-time highs in the process. And last week was no different. The market continued to forge higher, with all three major market benchmarks closing the week near or at all-time highs. The S&P 500 added 1.67%, the Dow gained 1.02%, and the Nasdaq advanced by 1.94%.

For the third time in less than a year, a portfolio stock has received a lucrative buyout offer. The board of directors of chemical company Chemtura (CHMT) unanimously agreed to accept a buyout offer from Lanxess AG in a deal valued at $2.5 billion.

The right options income strategies can help you generate yield in any market. Here’s how to use “The Wheel” on your favorite stocks.

Five guidelines to help you deal with this volatile time in the stock market.

America loves a turnaround story, and so does Wall Street. Here’s a turnaround stock in the auto industry that’s ready to burst.

The market finished with a bang at the end of last week, spurred by excellent earnings news from technology leaders Alphabet (GOOGL), Amazon (AMZN) and Microsoft (MSFT). If you own the leaders, this is a rewarding market. But beneath the surface, all is not well.

The market’s intermediate-term trend briefly turned positive last week, but the quick rejection of the indexes on Thursday and today’s battering clearly tell you that sellers are still lurking. That said, we would avoid any big-picture predictions—the weakness of last Thursday and today might mean the downtrend is resuming ... but the market could also be in a bottoming process, which often has many ups and downs as investors place (or take off) their bets. Either way, for an investor in leading stocks, there’s not much to do here; while some stocks have perked up, few have made any real progress, and to this point, most names that poke into new-high ground are quickly swarmed with sellers. Thus, our Market Monitor will remain neutral; some new buying here or there remains fine, but keep cash on the sideline and don’t get aggressive until the market kicks into gear.

This week’s list is a potpourri of differing sectors and stories, though there is a retail bent to the list. Our favorite of the week is Coinstar (CSTR), a company with a solid history of growth that might now have (another) new concept to keep the bottom line humming. The stock has built a solid base during the market’s correction.

Stock Name	Price	Buy Range	Loss Limit
CSTR (CSTR)	0.00	64-66	-
eBay Inc. (EBAY)	0.00	41-43	-
HTWR (HTWR)	0.00	83-85	-
MDC (MDC)	0.00	28-29.5	-
Medivation (MDVN)	0.00	82-85	-
NetSuite, Inc. (N)	0.00	49-51	-
PetSmart (PETM)	0.00	64.5-66.5	-
SolarWinds (SWI)	0.00	42-44	-
VSI (VSI)	0.00	52-54	-
Zumiez (ZUMZ)	0.00	37-38.5	-

Heading into the last month of the year, the prospects for the market remain very good, with a plethora of technical indicators telling us the market will be higher in the years ahead, and thus I continue to recommend that you be heavily invested.

Forget tariffs, forget trade negotiations, forget politics, and forget all the “problems” of the outside world. Just hold a portfolio of carefully selected high-potential stocks, and all will be well.

Today’s recommendation is a fast-growing company that’s a major participant in the 5G communications revolution.

Details in the issue.

We all saw U.S. stock markets exhibit exuberance on December 3 and then fear on December 4. I anticipate another strong upward move during the remainder of this week.

Two stocks in the portfolio recently reported earnings.

Our cannabis stocks rose nicely yesterday on news that President Biden has asked the Justice Department (DOJ) and the Department of Health and Human Services (HHS) to review marijuana’s federal scheduling status.

Utilities make great income investments. They generate reliable, fee-based income by supplying the public with essential services, and most are in markets with limited or no competition. Utility companies are subject to regulation (with the amount varying by state) and most have to obtain permission to increase their rates, which can...

U.S. and international markets staged a rally this week alongside momentous events in Asia as China imposes its will on Hong Kong through the passage of national security law. America indicates it will withdraw trade preferences for Hong Kong, viewing it as indistinguishable from China. China cracks down on Hong Kong as legislation advances in the U.S. to potentially delist international and Chinese companies that do not meet U.S. disclosure standards. Meanwhile, we have a new recommendation this week that has been in the news regarding Covid-19 and how we should all look at the economics of discovering new drugs.

Our healthcare system is broken. Insurance costs have risen inexorably. Doctors are frustrated at being paid less than they are worth. Millions of Americans are unable to afford basic insurance. And Americans are in terrible health. Yet previous attempts to fix the system have failed. So President Barack Obama is hunting for a less expensive system that will keep more of us healthy. I say, “Good luck,” sincerely but skeptically, because while I truly desire a better system I believe the institutionalized powers will make achieving change very difficult. In fact, I think what we need for this challenge is not a president but a dictator.

Comments on one of our stocks, one stock rejoins the Growth Portfolio, and one of our companies reported a fourth-quarter earnings beat.

Goosehead Insurance (GSHD) reported after the close yesterday that Q1 revenue rose by 53% to $31.2 million (beating by $2.5 million) and adjusted EPS rose to $0.03 from $0.01 in the year-ago quarter (missing by $0.03). That pace of revenue growth was up from 48% in the quarter ended December 31, and well above the 13% revenue growth rate reported in the year-ago quarter.