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Third-quarter earnings season is only days away. PepsiCo (PEP) will kick off the season on Tuesday, October 10. The “official” start is generally considered to be on Friday, October 13, when major financials like recommended stock Citigroup (C), as well as JPMorgan (JPM), Wells Fargo & Company (WFC) and Blackrock (BLK) report their results. For the S&P 500 members, Tuesdays, Wednesdays, and Thursdays are the busiest, as 20-50 companies report on each of those days. While weekends are almost cleanly bereft of reports, Berkshire Hathaway (BRK/B) provides a stand-out exception (estimated to report on November 4).

Not much has changed with the market’s picture—most stocks (especially cyclical stocks) are very strong, and we’re happy that the Model Portfolio is off to a good start this year after a great 2020. However, things are also quite frothy, few stocks are at attractive entry points and there remains a bunch of crosscurrents (day-to-day rotation, etc.) that’s making timing trickier.

The market boomed today after a tamer-than-expected inflation report, with the Dow exploding higher by nearly 1,200 points (3.7%) and the Nasdaq surging 761 points (7.3%).

Despite some weakness early in the week, the indexes bounced back in a big way, closing at new all-time highs. For the week the S&P 500 gained 1%, the Dow added 1.07%, and the Nasdaq soared higher by 2%.

Despite some weakness early in the week, the indexes bounced back in a big way, closing at new all-time highs. For the week the S&P 500 gained 1%, the Dow added 1.07%, and the Nasdaq soared higher by 2%.

With the Federal Reserve signaling that the interest rate hiking cycle is over, and there may even be rate cuts in 2024 the bulls cheered this news as the S&P 500 gained 2.5%, the Dow rallied 2.9%, and the Nasdaq added 2.85%.

With the Federal Reserve signaling that the interest rate hiking cycle is over, and there may even be rate cuts in 2024 the bulls cheered this news as the S&P 500 gained 2.5%, the Dow rallied 2.9%, and the Nasdaq added 2.85%.

Remain mostly bullish, but continue to play things on a stock-by-stock basis. The overall market remains in fine shape, and we’re pleased to see many growth stocks find buyers in recent days (though many still appear to need more time to rest after big runs this year). In the Model Portfolio, we’re buying a 10% position in a leading Bull Market stock that’s pulled back a bit after a decisive breakout. That will leave our cash position near 18%.

On average, our portfolio is outperforming the Russell 2000 Small Cap Index (the most common benchmark for small caps) in 2016. We have a few stocks lagging the index, largely because of a drop in a few stocks over the past few days.

In this week’s video, Mike Cintolo says he’s OK with a little buying, and it’s paramount to have your shopping list in order if this rally continues.

The bulls came out swinging after Labor Day, putting at least a brief half to all the late-summer selling. Whether the mini-rally lasts another week (or longer) may depend on the new inflation data, due out tomorrow morning before the opening bell. For now, the bear market remains, but it was a good week for stocks – and an even better week for the Stock of the Week portfolio, with several of our stocks up double-digit percentages since we last spoke. And today we add a new stock that’s poised to lead the next true market rally – whenever it arrives – but in the meantime is faring quite well in its own specific niche.

Details inside.

This week was generally one of stabilization, with the major indexes down 1% or less as of this morning, as volume and volatility tapered off. This continues a trend seen since last Thursday (and, for many stocks, last Monday) of stocks, sectors and indexes finding some support after a horrific three-week decline.

Stocks are bouncing this morning, but overall, it’s been another down week for the market, with the major indexes probing new correction lows as recently as yesterday. That obviously keeps the intermediate-term evidence pointed down, whether you’re looking at the trends of the major indexes, the action of individual stocks (70% of S&P 500 stocks and 80% of the broad market came into today south of their 50-day lines) or broader measures (new lows are swamping new highs each day).

This week I’m adding a recent earnings season winner, an American developer of all-flash data storage hardware and software products, Pure Storage (PSTG).

It’s been another decent week for the market, but also very mixed, with the broad market indexes (small and mid-caps) up 1.5% to 2% or more, while the big-cap indexes are flat-ish.

Back on May 8, I suggested getting long cannabis as a contrarian trade because sentiment had turned dark, and there was a potential catalyst on the horizon.

It’s been another flat-to-up week, this time with the big-cap indexes and many growth measures either flat or up a smidge, while some of the broader indexes are up in the 1% to 2% range.

It’s been a relatively quiet week in the market, with most indexes up a bit as of this morning, but generally less than 1% (Nasdaq a bit better than that). Interest rates have also been quiet, checking in with their second straight week of little net change (up four basis points total in the past two weeks).

The selling in growth stocks seen under the surface last week accelerated this week, with the Nasdaq off nearly 2.5% coming into today, while the S&P 500 took a smaller hit (1.2%). Meanwhile, broader measures were down some but held up far better as the rotation theme continued.