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Cannabis stocks have fallen sharply since the beginning of April. The AdvisorShares Pure U.S. Cannabis (MSOS) is down 15.4% since April 1. There are two reasons.

First, investor enthusiasm for stocks overall has waned, creating significant declines across indices. Because cannabis is perceived as a riskier sector, cannabis stocks decline more than most stocks when investors move into risk-off mode.

Second, many analysts and investors had hoped for visible progress on key catalysts by now – chiefly rescheduling and cannabis banking reform. They have been disappointed.

Value stocks with insider buying are on the rise as growth stocks are stuck in the mud. Here are three that are worth your attention.

Thoratec Corporation (THOR, Nasdaq) is the world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts. We have held shares of this company for years watching the technology develop for its LVAS (Left Ventricular Assist System). The company has received FDA Pre-Market Approval allowing the...

I recommend that you sell Boeing and move your capital into WellCare Health Plans (WCG) or Cardinal Health (CAH).

The downtrend in Chinese stocks is hitting many of our holdings, but has been especially hard on Baozun (BZUN), which we took a half position in on September 9. Sell BZUN.

“Wyndham Worldwide Corp. (WYN) shares have rallied 18% this year, ahead of the 8% gain posted by the S&P 500 Index and the 12% advance of the consumer-discretionary sector index. The rally reflects outstanding operating momentum, with revenue growing at least 7% in every quarter last year while operating profit...

The major indexes quickly retreated after the prior couple of good weeks, with growth-oriented areas falling the most, a lot of stocks being rejected near resistance and some old winners being taken out and shot. Despite that, there are some green shoots out there—by the letter of the law, some broad indexes (like small- and mid-caps) are in intermediate-term uptrends, and we’re also seeing some sectors assert themselves, especially in the commodity space. We’re not bullish, and will leave our Market Monitor at a level 4, though our overall advice remains basically unchanged: Hold plenty of cash, honor your stops and, if you do some buying, keep it small.


This week’s list is again heavy on commodity-type names, though we’re also seeing a few recent earnings winners that have some growth to them. Our Top Pick straddles the line between growth and commodity and is one of the few names to move out to recently all-time highs.

Certain types of stocks require special handling—here’s how to use stop-losses on small-cap stocks to avoid losses or protect gains.

Current Market Outlook


We’ve seen some constructive action during the past few days—the major indexes have thus far successfully re-tested their August lows and we saw some positive divergences in the broad market (far fewer stocks hitting new lows this time around). Now we’re looking to see if the intermediate-term trend can turn up; by our measures, it could happen within a day or two if the market holds its recent gains. And if it does happen, we’ll move to a more neutral stance—giving some stocks looser leashes and advising more new buying (though we wouldn’t advise jumping in with both feet). We’ll see how it goes, but for now, be sure to have your shopping list ready.

This week’s list has a few steady Eddies but also some real growth stories, including a couple of new ones to us. For our Top Pick we’ll stay with the big-cap growth theme that’s offered many resilient stocks—Adobe Systems (ADBE) dominates its field and just completed a transition to the cloud, which will lead to huge recurring revenues going forward.

Stock Name	Price	Buy Range	Loss Limit
Zoës Kitchen (ZOES)	0.00	38-41	35-36
VeriSign (VRSN)	190.71	71-73	67-68
Sarepta Therapeutics (SRPT)	120.93	39-42	35.5-36
Shopify (SHOP)	585.00	34-37	31.5-32
Jabil Inc. (JBL)	41.50	21-22	19-20
Incyte Corporation (INCY)	76.98	116-121	105-106
Edwards Lifesciences (EW)	228.06	145-150	138-140
Cal-Maine Foods, Inc. (CALM)	0.00	57-60	53.5-54
Adobe Inc. (ADBE)	315.23	83-85	78-79
Advance Auto Parts (AAP)	0.00	187-191	167-170

The bull market is alive and well, though frothiness and investor exuberance are reminders that you shouldn’t leave your brain at the door. Always remember to manage your risk.

Speaking of risk, today’s recommendation is more speculative than most of our recommendations, so if you invest, start small. The sector it’s working in is hot, the story is interesting, and the stock’s chart is solidly positive, without being overextended, so I’m intrigued.



As for our current holdings, I’m selling one stock that achieved its target (good) and one that continues to decline and is now our biggest loser (bad).



Details inside.

The market has finally begun to consolidate after a heady eight-week run in the major indexes and leading stocks. It’s never fun to see things retrench, and we do think the next couple of weeks (very roughly speaking) could see more choppy, tedious trading. But our focus remains on the intermediate- and longer-term picture, and on that front, the evidence remains bullish, so we remain heavily invested.



The Model Portfolio has been steadily putting money to work, including filling out two positions last week. We now have eight stocks and a cash position of around 14%.



In tonight’s issue, we give our latest thoughts on all our positions and write about yet another unique, longer-term bullish occurrence that bodes well going forward.

It would be nice to be absolutely certain about anything in the business world, but things just don’t work that way.

Toll Brothers (TOL) reported earnings blowout and the stock is rising; maintain Buy. BorgWarner (BWA) stock is rising; rating change to Hold. Also, brief notes on Applied Materials (AMAT), Archer Daniels Midland (ADM), Big Lots (BIG) and Tesoro (TSO).

Last Friday’s TrumpCare vote will have ramifications for the American public, but you shouldn’t buy and sell stocks based on the outcome.

New highs in the market, coupled with negative headlines, have left investors worried that stocks may be topping out. That makes it a perfect time to buy call options.