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WHAT TO DO NOW: Continue to lean bullish, but pick your spots. Our intermediate-term indicators remain bullish, and the market’s consolidation so far has been tight and quiet, which is a plus. Leadership remains good-not-great, with many names acting well but also plenty of wobbles and some selling on strength, too. All told, we’re content to follow the playbook we’ve been using, adding as names emerge and averaging up if they start well. Tonight, we’ll fill out our position in Snowflake (SNOW), adding another half-sized stake, but we’ll hold 31% or so in cash and see how things go from here.

With so much weighing on markets these days, it pays to have quality dividend stocks in your portfolio. Here are 3 Sure Dividend recommends.

I don’t mind telling you that these are scary and depressing times for investors. One wave of bad news no sooner breaks over us than another one--even bigger--appears. The American banking and auto industries are circling the drain, and the Dow, which was within spitting distance of 14,000 just a year ago is now, having cracked the 8,000 level, trying to decide whether to rest there for a while or just plunge further. All in all, it’s enough to make you turn off your TV, limit your newspaper reading to the sports and funnies and abandon your computer for your game console. At least in World of Warcraft, you know the rules.

I break the best investment sites for small cap investors into three categories: idea generation, stock analysis, idea capture.

It’s been a crazy year, with bank failures, bailouts and a historic election behind us, 2008 will definitely be one to remember. In honor of the New Year, I’ve been looking back at 2008--all its ups and downs--and came up with a few investing New Year’s resolutions based on what’s happened. The most important thing to remember is to learn from your mistakes, but don’t dwell on them. They teach important lessons, but the most important thing is to move forward with those teachings in mind. Best of luck to you in 2009!

My career at Cabot began back in June 1999, just before the internet bubble really revved up in October. That was a time of great divergences—the broad market struggled all the way from the mini-bear market bottom of October 1998 right through the top in March 2000. Today I see a similar dichotomy in the market—many “old” leaders are struggling while “new” growth concepts are finding support.

Here are six lower-risk, dividend-paying stocks for your portfolio that will help you ride out the tumble in tech stocks.

Is the market’s recent bounce a true breakout or another false start? The following stock charts should give us some insight.

This Weekly Update includes summaries for four Cabot Benjamin Graham Value Investor companies which reported quarterly financial results or other important news during the past week. I have also included questions from subscribers along with my answers.

A look at Lululemon, Netflix and Priceline earlier this year and now.

Most retailers have suffered greatly during the recession, but one is making waves with newly frugal shoppers. The company is Aeropostale (ARO) and it was featured in Cabot Top Ten Report this Monday.

For a second straight year, an eye-poppingly bad July jobs report sent stocks tumbling. Last year, the selling lasted a few weeks, taking the S&P 500 down 8% and the Nasdaq down more than 13%. Is a similar correction in store this time around? This week will likely give us the answer. So far, however, it’s just one bad day, so we’ll keep our foot on the gas pedal by adding a high-growth semiconductor stock that is starting to show signs of life after a rough start to the year. It’s a new recommendation from Cabot Explorer Chief Analyst Carl Delfeld.

Details inside.

Finding turnaround stocks can be tricky. Here are some common characteristics, which could come in quite handy in the current environment.

The market has been up for six straight days, marijuana stocks look good, overall, and while we don’t quite have a buy signal from our intermediate-term trend-following indicator, we are very close. Today we are averaging up in three stocks.

Not many people will claim this was a great week, including us, but taken in combination with last week’s action, and we’re actually optimistic that Monday was the workable low we’ve been looking for. It started, of course, with some real extremes seen last week, including nearly 34% of Nasdaq issues hitting new lows (January 24) and 86% of Nasdaq stocks closing below their 200-day lines (January 27).

The markets have certainly given us a hair-raising ride since last month. Although the Federal Reserve’s decision to bump up interest rates was already priced into the market, the headwinds of China sent global market exchanges into a tailspin.

In the January issue of Cabot Early Opportunities, we take a look at updates within our portfolio then dive into five stocks from markets ranging from defense to cybersecurity to the blooming IT infrastructure market.

As always, there’s something for everybody!

Current Market Outlook


Last week’s issue was titled “Next Few Days Should be Key,” and we think they were—in a bullish way. The market’s strong snapback to new highs (in the indexes and many leaders) made the prior dip look like a shakeout, which generally bodes well. That said, the action didn’t erase all the yellow flags out there, either, as sentiment is bubbly, many stocks are extended in time and price and, most important, tons of names are set to report earnings in the days ahead, which will be key for the intermediate term. Don’t get us wrong, we’re encouraged, but we still think it’s best to pick your spots on the buy side and trail your stops (and book some partial profits here and there) as opportunities arise. We’ll move our Market Monitor back up a notch and see how things go from here.

This week’s list is brimming with strong names, including more than a few that reacted well to earnings last week. For our Top Pick, we’ll go with Dynatrace (DT), which has just gotten going from a multi-month structure and looks ready for a sustained advance.

Stock Name	Price	Buy Range	Loss Limit
Align Technology (ALGN)	602	585-605	525-540
Bill.com Holdings (BILL)	179	170-177	150-154
Canada Goose Holdings (GOOS)	42	40-42.5	35.5-37
Dynatrace (DT)	56	53-56	47.5-49
PayPal (PYPL)	282	267-277	240-246
Pinduoduo (PDD)	188	178-186	160-164
SM Energy (SM)	12	10-11	8-8.8
Snap Inc. (SNAP)	64	60.5-63.5	53-54.5
Tapestry, Inc. (TPR)	39	35-37	31.5-33
Zendesk (ZEN)	156	150-155	138-141