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Delegates from OPEC and Russia decided last week that they will not make any decisions regarding a possible extension of oil production cuts until January. Some people expect oil production to beginning rising again in March 2018. Conversely, Iraq and Ecuador are leaning toward further production cuts.

The good times keep rolling in the Stock of the Week portfolio, as more than a handful of our stocks are either at 52-week highs or all-time highs thanks in part to big earnings boosts in recent weeks.

While there are myriad potential potholes out there – another big regional bank failed, another interest rate hike is likely coming this week, the debt ceiling and mild recession are looming, earnings overall have been mixed, and so on – the market has been remarkably resilient of late. So this week we take another big swing by sticking with what has been our bread-and-butter niche since taking over this advisory last summer: up-and-coming retail leaders. The latest addition is a favorite of Cabot Growth Investor Chief Analyst Mike Cintolo.

Details inside.

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

The bull market remains alive and well, with major indexes hitting new highs in the last week. However, growth stocks in particular have been hit hard recently—finally spilling into the broad market in the last few trading days—and that requires some selling, so today we’re purging four of our weakest performers from the portfolio. As for new buying, today’s recommended stock is growing by consolidating a fragmented mature industry. It just came public this year, so it’s a name few investors are aware of. The stock was originally recommended by Tyler Laundon in Cabot Early Opportunities.

Details inside.



Lastly, I hope you’ll join me for the 9th Annual Smarter Investing, Greater Profits Online Conference, August 17-19. We have an incredible lineup of experts ready to share their best picks.

The bull market is alive and well, as both of Cabot’s trend-following market-timing indicators are now positive, so I continue to recommend that you be heavily invested.

Today’s recommendation is a fast-growing company helping businesses in the cloud, one of today’s major growth themes. Aggressive investors should love it.



However, the addition of this stock means I need to sell one, and the unfortunate victim is the stock that’s our biggest loser (not that we have many).



Full details in the issue.

The stock market remains hot, and while a pullback is always possible, the trend is firmly up. A lot of stocks are overextended short-term though, including some in our portfolio, so don’t be afraid to take partial profits where you have them, and be selective on the buy side.

Note: Due to a technical issue, publication of your Cabot Cannabis Investor update has been delayed by one day. We apologize for any inconvenience; future updates and issues will be delivered per the normal publishing schedule.

If you have been steadily averaging down in cannabis stocks during the sector’s dark days all year, well done.

You are finally being rewarded.

U.S. crude oil hit a seven-year high as stocks, especially tech stocks, face headwinds. Today I am moving dominator Taiwan Semiconductor (TSM) to a Sell as Taiwan, America, China and Japan play a dangerous game. China sent 52 warplanes into the islands air buffer zone after the U.S. and allies held exercises nearby.

The biggest stories this week weren’t all that different from last week, namely supply chains, interest rates/inflation, and Covid. But this week has a decidedly different feel to it, possibly because we’ve added earnings season into the mix and, so far, that’s going pretty well.

The market’s main trend remains up, though there is certainly some rotation going on, with technology stocks pulling back and financials and medical stocks surging. My advice is to react slowly to these shifts, taking things on a stock by stock basis according to what the stocks are actually doing—and not assuming anything.

The upward trajectory for growth stocks that was smooth sailing in November has turned far bumpier in December.

It’s cannabis company earnings season once again. Below, I summarize the highlights from our portfolio companies. But first, here are the major sector trends that emerged from the calls.

Rich Howe, Chief Analyst of Cabot Micro-Cap Insider, talks about the micro-cap market and how he identifies top ideas. He then profiles three stock ideas which could triple within 12 months.

There are many ways to use options and some are less risky than stocks.

While still very choppy, this past week has been much better than the two weeks prior as the selloff in growth stocks has cooled and more investors have begun to think longer term. While the risk of inflation is still an overhang on high-multiple stocks, the passage of time allows global supply chains to re-adjust and for people/companies/policy setters to get a better handle on what the legitimate inflation risk is.

After a solid three-day rally, stocks sold off again today—the Dow was actually up a point but the Nasdaq fell 270 points (1.7%) and most growth stocks were down in the 3% to 5% range.

Small caps are having a very nice week as a lot of rate-sensitive areas of the market zoom higher following the Fed’s meeting and Jerome Powell’s press conference yesterday.

I’ve been saying I think small caps are very attractive lately, so the directional move here isn’t a surprise, though the pace of this week’s gains is rather eye opening. The S&P 600 Small Cap index is up about 7% over the last two days through midday Thursday!

Neither the broad market nor the S&P 600 Small Cap index have done much over the last week. But both received a small boost yesterday after the Fed upgraded its 2021 growth outlook and said it didn’t expect to raise rates until 2024.