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Led higher by major tech stocks (and especially AAPL) the Nasdaq gained nearly 4% last week, closing at a new record high. Less impressive were the other leading indexes, though their gains were very positive as well as the S&P 500 added 2.4%, while the Dow rallied 1.3%.

Like many, I initially scoffed at the Tesla Cybertruck design. But given the early interest, it could be the thing to put TSLA stock over the top.

Our Market Monitor is at a level 8, and could be bumped up a notch depending on the rest of today. But whatever the exact level, you should remain bullish.

It’s been a constructive week in the market, with most major indexes tacking on gains, and the largest upmoves registered by small- and mid-cap indexes.

China is a country that, as we all know, is changing fast ... but is still misunderstood. While writing the title of this column, I was tempted to use the word xenophobia, meaning fear or contempt of strangers or foreign peoples. But the word I want (which appears not to exist) means, “underestimating the power of the people of a foreign country.” Because when it comes to China, I fear that’s exactly the mistake most Americans are making today. To the vast majority of Americans, China is, first and foremost, a Communist country. Americans “know” Communism is the wrong way to go. However, for the past quarter-century, the Chinese economy has grown at an average annual rate of 10%.

Now that Florida Gov. Ron DeSantis (R) is officially in the race for the Republican presidential nomination, it’s worth knowing more about his views on cannabis policy.


After all, DeSantis will now play an even bigger part in the election debates, even if polls say DeSantis has a slim chance against frontrunner Donald Trump. His voice matters – since cannabis is such a politically driven sector.



The bottom line: DeSantis offers a mixed picture, but it’s not all bad for cannabis investors.

Iridium Communications (IRDM, 5.96) Buy Iridium (IRDM:NASDAQ) as a bounce back play on space communications. Iridium is a global leader in providing satellite communication services. The company sells voice and data communication services to areas that are hard to reach—places where cell phones and landlines are not available. ... The company...

Cannabis stocks are up 10%-20% since I encouraged you to buy them on weakness in my last update on October 31.

That’s a nice short-term gain – much better than the 5.5% S&P 500 advance over the same time.
I hope you participated.

Traders may want to book profits. The stocks are strong this morning on news that Ohio voters approved a referendum on recreational use legalization. This rally could reverse. However, cannabis stocks are still down sharply from the rescheduling rally last summer. I suggest continuing to stay long in the midst of the overall weakness since that rescheduling news rally last summer.

Today’s stock market is impervious to geopolitical concerns, rising to new heights on almost a monthly basis. Will it last? Longer than you think!

There’s been a lot of movement in recent days in the broad market, the major indexes and various sectors, so let’s get right to our thoughts.

As we head into a new year, I would like to thank all of you for your support and wish you all both good health and profits in 2021. But today, we have a piece of unfinished business that needs to be dealt with - Alibaba (BABA).

It can pay to pay attention to what investment legends are doing to cope in these turbulent times.

Warren Buffett still has a knack for seeking value and a history of going to Japan to find it in times of volatility. Overall, Japan’s Topix index trades at 13.3 times expected earnings, according to S&P Global Market Intelligence. That compares with 18.9 times for the S&P 500.

The Trump administration’s apparent effort to de-escalate its tariff war with China has been meet with statements from Chinese officials saying there are no ongoing trade talks with the U.S. and that all pronouncements of progress in negotiation are groundless.

Still, the market has begun to factor in a “less bad” outcome than was being contemplated last week.

It has helped significantly that Trump backed away from what seemed like a very clear desire to fire Fed Chair Jerome Powell, which caused another spike in market panic last week.

Centrus Energy (LEU) shares were largely unchanged as the company is well positioned to benefit from growth in next-generation nuclear technology, helping provide reliable and carbon-free electricity. This is still a buy for aggressive investors.

Current Market Outlook


Not much has changed with the major indexes during the past week—all remain in intermediate- and longer-term uptrends, with small- and mid-cap indexes leading the way and the Nasdaq pulling up the rear. Below the surface, we have seen some profit taking in among many of the market’s top stocks and sectors (even the super-strong industrials, commodities and transports), and given the huge runs those names have seen during the past month, further retrenchment is certainly possible. But when we consider all of the evidence, the odds strongly favor dips being buyable, as pullbacks or shakeout-type action will probably lead to higher prices down the road. We’ll keep our Market Monitor in bullish territory at level 8.

This week’s list is heavy on turnaround stories, especially those in the industrial and commodity sectors. Our Top Pick is Steel Dynamics (STLD), a leader of the steel sector that’s starting to pull back after a big run. You can buy some here or (preferably) on further weakness.

Stock Name	Price	Buy Range	Loss Limit
Cavium (CAVM)	0.00	61-63.5	55-57
DeVry (DV)	0.00	29.5-32	27-28
Oshkosh (OSK)	95.04	67-69.5	61-62
PDC Energy (PDCE)	0.00	77-81	70-72
Signature Bank (SBNY)	0.00	147-151	136-138
Steel Dynamics (STLD)	0.00	35-37	31-32.5
SunCoke Energy (SXC)	0.00	11-12	10-10.5
Tailored Brands (TLRD)	0.00	24.5-27	22-23.5
Transocean Ltd. (RIG)	0.00	14-15	12-12.5
Western Digital Corporation (WDC)	0.00	63-67	56.5-58

Will 2014 be a repeat of 2013—so that investors who missed out in 2013 can make up for lost ground?

After a straight-up run in many indexes and some great moves by individual stocks, the sellers have finally taken a stand, with the market and many stocks hitting air pockets during the past couple of days.

For the first time since the market kicked off after the November elections, we’re seeing price/volume action that tells us the sellers are stepping up. This action isn’t a death knell, but it’s worth watching to see if the post-election uptrend is beginning to crack.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the March 2024 issue.

In this issue we look into the bear case for the energy sector and discuss why energy stocks might provide some tonic for sober investors in an otherwise tech-intoxicated stock market. We highlight a selection of six energy stocks worthy of at least a sip.

This month’s Buy recommendation, VF Corporation (VFC), is a major apparel and footwear maker whose shares have collapsed 83% and now trade at their 2006 price. The new CEO, an unusual selection from outside the industry, is undertaking a complete overhaul of the company, with some early signs of progress.

The ultimate “fear gauge” isn’t the CBOE Volatility Index (VIX), as financial market pundits often insist. My contention is that it’s actually gold, which arguably is the most historically reliable barometer of how worried the average investor is over various economic, geopolitical and market-related developments.