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Sparked by a “hotter”-than-expected inflation report on Tuesday, the market had its worst week since June. The numbers were not pretty as the S&P 500 fell 5.15%, the Dow lost 4.13%, and the Nasdaq declined by another 5.5%.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Alcoa (AA), Atlassian (TEAM), Centuri Holdings (CTRI), SLB Ltd. (SLB) and Starbucks (SBUX).

Gold miner Agnico Eagle Mines (AEM) is well positioned in the ongoing tariff war to benefit from increasing safe-haven gold demand.

Now that the stock market correction has finally arrived, this weekly update is going to be a little bit different than normal. I’m not going to bother researching and reporting changes in earnings estimates, unless a company (a) just reported quarterly results within recent days and (b) the quarterly results significantly changed the future EPS projections.

The Office of the U.S. Trade Representative and the Department of Commerce have taken a decidedly different approach to U.S. participation in international trade since November 2016. I realize that international trade can be somewhat of a dry topic, but since these decisions are affecting the bottom line in U.S. industry, stock market opportunities are unfolding before us.

The goal is to always hold a portfolio that has the best potential to bring you large profits.

And now one brief recommendation. It’s a gold stock, Freeport McMoRan (FCX). Freeport owns the Grasberg open pit mine in Indonesia, which is not only the world’s richest gold mine but also the world’s third-largest copper mine. And it acquired Phelps Dodge earlier this year, making it the largest publicly traded copper company in the world.

A major challenge in 2024 for investors and analysts alike will be separating the artificial intelligence (AI) “pretenders” from the “contenders.” Super Micro Computer (SMCI), a recent Explorer recommendation, was up 23% this week, and Exscientia (EXAI) shares were up 13% yesterday.

First off, some housekeeping: This is our last Top Ten issue of the year, as next Monday is the second of two “off” weeks we have all year. We will, however, send out a full Movers & Shakers update next Monday (December 29) to keep you up to date. Most important, we wish you and your family a very Merry Christmas and Happy Holidays.

As for the market, the five-day dip into last Wednesday was a downer, but it looks like a year-end rally is underway, with the indexes and many stocks lifting nicely of late. Of course, looking ahead, early January is usually very tricky, though as always, we’ll just take it as it comes: Today, we continue to see more good than bad out there, though it does depend on where you look, with cyclical and financial areas doing well while growth areas are picking up steam but lagging. We’ll nudge our Market Monitor up to a level 7, respecting the action, but focusing on what’s working remains paramount.

This week’s list is again well balanced, with some strong names continuing their moves and other titles emerging after long rest periods. Our Top Pick has many industry-wide and company-specific tailwinds, and the stock looks to be changing character as it discounts a much brighter future.

Current Market Outlook


Last week was a great one for the major indexes and leading stocks, with many surging higher on big volume to notch new highs, a good sign that big investors are putting money to work in growth stocks. That said, it’s not all peaches and cream out there—hundreds of stocks are actually hitting new 52-week lows (mostly energy and interest rate-sensitive stocks, but others, too), and to this point, only the Nasdaq has reached new high ground; the intermediate-term trend for most indexes remains neutral. Reflecting the terrific action of Top Ten stocks, we’ll nudge our Market Monitor up a notch; if you see a good set-up, go ahead and take it. But we’re still advising holding some cash on the sideline and being selective on the buy side.

This week’s list has a hodgepodge of stocks, many of which haven’t been featured here for a long time. For our Top Pick, we’ll stick with the big-cap growth stock theme that’s working well—Celgene (CELG) just popped out of a four-month base on big volume last week following a major acquisition. It’s buyable around here.

Stock Name	Price	Buy Range	Loss Limit
Intrexon (XON)	0.00	55-57	49-50
Take-Two Interactive (TTWO)	123.32	29.5-31	27.5-28
Progressive Corp. (PGR)	0.00	30-31	27-28
Blackhawk Network (HAWK)	0.00	41-43	38-38.5
Alphabet, Inc. (GOOGL)	0.00	675-700	630-635
Fitbit Inc. (FIT)	0.00	42-46	37-38
Domino’s Pizza (DPZ)	339.47	128-134	117-118
Celgene (CELG)	0.00	130-135	119-121
Barnes & Noble (BKS)	0.00	27.5-29	24-25
Alaska Air Group (ALK)	0.00	72-74	66-67
ACADIA Pharmaceuticals (ACAD)	47.84	47-50	42-43

There are several advantages that small investors have that big institutions never will.

In good times, it pays to own the most popular stocks on the market. But you need a few contrarian stocks for when things sour for the big boys.

Chinese stocks aren’t for everyone. However, emerging markets stocks are a fascinating place to look for profits.

The past year has been relatively easy for investors. But I know that these boom times won’t last.

In February’s Issue of Cabot Early Opportunities we dig into the red hot IPO market.

We take a closer look at five recent IPOs that have been on my shopping list. It is not an Issue for the faint of heart. Several of these stocks have made significant moves in their short history as public companies.



There are strategies to mitigate the risks, however. And as we scan the universe of attractive stories today it is not hard to envision several of these stocks trading significantly higher a year from now.



Sit back and enjoy.

The market’s evidence continues to improve, with our core market timing indicators returning to the bullish side of the fence. That’s obviously a good thing and has us optimistic -- though upside follow through from here will be key, as many growth measures are still lagging behind, though we are seeing more setups, especially from areas that sat around for much of the past year (see the issue for much more on that). All told, we are doign some new buying tonight, and will have more to come if the market continues to act well.

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