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As the market was unwinding, the question I often heard from subscribers of Cabot Options Trader and Cabot Options Trader Pro, was “what stocks were on your watch list to buy?” My answer was always the same: look at the Daily Order Flow Reading email that I send every day for the best ideas on what to short and what to buy.

I look around to see what history is happening in the world now and I see above all the rapid development of China. While here in the U.S. we struggle to regain positive economic growth, this year China’s economy will grow 8% ... maybe more. Which means China is a great place to find growth companies! One of my long-term favorites in the country is Ctrip.com (CTRP), which has the country’s biggest travel-related Web site. The company’s revenues were $99 million in 2006, $160 million in 2007 and $215 million in 2008. Earnings were equally impressive.

The major indexes have been hitting new highs in recent days, all Cabot’s market timing indicators are currently positive, and our portfolio looks good!

However, there is one sale—of a strong stock that now has less upside potential—as well as one downgrade to hold and one upgrade to buy. Details in the issue.

As to the new addition, with true growth stocks turning strong again, I’m recommending one of the strongest, a provider of hardware that enables ever-faster movement of data in the cloud-computing environment.

Details in the issue.

You may think you can file for bankruptcy and student loans will no longer be a problem, but there are more hurdles to get rid of that debt.

While it’s not a pure-play cryptocurrency stock, this financial major is making big investments and signaling its foray into crypto.

South Korean stocks are in the midst of a solid uptrend to start the new year and these five stocks are a prime way to play it.

The stock which just joined the Buy Low Opportunities Portfolio on January 8, reported fourth quarter results after yesterday’s market close (November year-end). Revenue and earnings per share (EPS) came in higher than analysts had expected, and higher than the company had recently projected in December.

Two stocks have rating changes today.

We are combining our regular Friday afternoon Members-Only Podcast with any earnings updates. By combining these, you will receive the same research, perspective and analysis as always yet in one easy-to-read email.

In a market that has been anything but, it can pay to invest in a boring value stock with solid fundamentals and a great dividend to boot.

The broad market remains (ahem) challenging, but there are still broad pockets of strength, and if you care to mine them (we have mining on our minds, for obvious reasons), and you watch your stocks carefully, you can still make money in this market. Coal, oil and fertilizer remain strong, but we’re now seeing more action in stocks of supporting industries, like the companies that help the drillers, or the companies that sell and service the tractors that roam the fields. This extension of strength into supporting industries is normal; we well remember when layers of technology stocks went through the process in the 80s and 90s. So don’t fear it and don’t fight it; embrace it and prosper. Our Editor’s Choice in this issue is one of these stocks, Titan Machinery. Making its first appearance in Cabot Top Ten Report, and hopefully not its last, it boasts good management, a great industry rolling in cash, and excellent expansion opportunities. Plus, it’s a young stock, and the buyers are in total control.

Stock Name	Price	Buy Range	Loss Limit
AGU (AGU)	0.00	96-102	-
AUXL (AUXL)	0.00	33-36	-
BUCY (BUCY)	0.00	69-73	-
CPX (CPX)	0.00	29-31	-
CRM (CRM)	0.00	69-74	-
GDP (GDP)	0.00	52-57	-
MOS (MOS)	0.00	143-150	-
ROST (ROST)	0.00	31-36	-
STLD (STLD)	0.00	36-40	-
TITN (TITN)	0.00	30-32	-

After a bumpy first half of the year, there are plenty of undervalued dividend stocks out there. Here are 10 poised for a big second half of 2018.

The market remains in an uptrend, though the correction that started last week may do a little more damage. If so, try to take advantage of it, remembering that buying low is the goal.
Today’s stock is a name you know—a name all Americans know—and I think it’s a good buy here after correcting 39% last fall. Crista Huff is the Cabot analyst who recommended it most recently, in part on fundamental grounds, and my reading of the chart confirms her conclusion.
As for the current portfolio, we continue to make great progress, but there’s always room for improvement. The only changes this week are two upgrades from Hold to Buy. Details inside.

Facebook is changing its name to Meta Platforms and going all-in on it, but what is the metaverse and what does it mean for investors?

I believe in expertise. I think people who have lots of knowledge and experience are likely to be more helpful to me in finding reliable information and solving problems.

Many banks in are experiencing rapid growth in developing economies.

Current Market Outlook


The first week of the year was extremely volatile, but all in all the action ended up positive, with major indexes kissing fresh all-time highs and many leading stocks ending up nicely on the week. Overall, then, not much has changed—the primary evidence remains positive, so we’re content to ride things higher, but there’s little doubt the environment is hot and heavy (basically the opposite of what we saw 10 months ago), so you should continue to keep your feet on the ground (trail stops, take partial profits when available) and be discerning with your buys (aiming to enter after a bit of rest or some sharp shakeouts to support areas).

Because of this, most of our buy ranges are a bit below current prices (looking for pullbacks), though we still see some solid setups. One is Snap (SNAP), which is a clear leader in the internet space and has just returned to its highs after its first test of the 10-week line since its October blastoff.

Stock Name	Price	Buy Range	Loss Limit
8x8, Inc. (EGHT)	35.5	32.5-34.5	27.5-29
LPL Financial Holdings (LPLA)	116.8	108-112	97-99
The Mosaic Company (MOS)	26.8	25-27	21.5-22.5
Palo Alto Networks (PANW)	364.6	345-360	310-320
Progyny (PGNY)	44.9	40.5-43	36.5-38
Snap Inc. (SNAP)	54.4	53-55	47-48.5
Spotify (SPOT)	344.2	335-347	297-304
Sunrun (RUN)	95.8	87-91	74-77
Vale S.A. (VALE)	18.6	17.4-18.2	15.8-16.2
Zillow (Z)	143.2	134-140	119-122

The market has been ripping higher with broader participation from sectors that weren’t doing much a couple months ago. That’s the good news. And it’s showing up in the charts with the Small Cap Index at multi-month highs (but well below all-time highs). IPOs are starting to find their legs too. The not-so-good news is that the market is looking a little stretched, which could mean a pause or pullback is coming sooner rather than later. But, the market has a way of doing the unpredictable and with so many investors thinking it’s time for break we could see just the opposite. This month we try to play both sides of the ball by spreading things around in different sectors and across market caps. There’s some IPOs, some high growth software and MedTech ideas, and another growth + value name. They all have their own qualities and stand out to me for different reasons right now.

The market succumbed today to some bad news from Europe, although some buyers did support shares after the early-morning dip. Net-net, today and last Friday were bad, but the major indexes remain range-bound; amazingly, the Nasdaq is now in the midst of its sixth 4% swing up or down since early June, and yet, has made basically no progress during that time. It’s choppy out there! Thus, we see no reason to change our Market Monitor from its neutral position. As for individual stocks, it, too, is a mixed bag—some big leaders broke down last week, but many are still base-building and a couple actually poked into new-high ground after solid quarterly reports. All in all, a little buying is fine, but do your buying on weakness, keep positions smaller than normal and adhere to your stops.

This week’s list is a hodgepodge of stocks from different industries; most are strong for individual reasons (earnings, etc.). Our top pick is PPG Industries (PPG), which isn’t an exciting company, but it delivered a solid earnings report and announced a merger that kicked the stock higher. We think it could do well if bought on pullbacks.

Stock Name	Price	Buy Range	Loss Limit
A.O. SMITH (AOS)	0.00	49-50.5	-
ASML Holding (ASML)	350.01	52.5-54.5	-
DVA (DVA)	0.00	94-97	-
eBay Inc. (EBAY)	0.00	43-45	-
Medivation (MDVN)	0.00	90-94	-
Mellanox Technologies (MLNX)	92.00	84-90	-
PPG Industries (PPG)	0.00	109-112	-
Skyworks Solutions (SWKS)	0.00	27-28	-
USG Corp. (USG)	0.00	18.5-20	-
WOR (WOR)	0.00	21-22	-