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The S&P 500 officially hit correction territory last week, down 10% or more from the high. While the bulk of the selling might be near the end, stocks are unlikely to gain significant and lasting upside traction until current uncertainties dissipate.

Last week’s inflation report was good. The CPI number was better than expected and showed a decrease in the level of price increases for the first time in several months. The economy appears to be slowing, but investors are likely okay with that if there isn’t a recession. Those two things add up to lower interest rates. But the tariff uncertainty seems to be preventing any kind of positive new narrative from taking shape in the market.

As we roll toward Labor Day, it’s pretty much the same story when it comes to the market: Most of the evidence is at least leaning positive and we see many recent positive earnings reactions, which is a plus—but there also remain many crosscurrents out there, with plenty of selling on strength as many sectors chop sideways. We’re sticking with the same stance—holding our strong performers, but tightening stops on names that wobble and being selective on the buy side, aiming for strong entry points in case more air pockets emerge. We’ll once again leave our Market Monitor at a level 7.

This week’s list was affected by last week’s rotation, but our Top Pick is a name that had a big run but has now dipped in an orderly fashion for the past month.

The market has had a good amount thrown at it of late, though so far, the big-cap indexes have mostly hung in there and more than a few growth stocks have done the same, which are certainly rays of light. At this point, though, that doesn’t outweigh all the other evidence that tells us to be cautious—the intermediate-term trend remains sideways-to-down and most stocks and sectors are firmly in correction territory. All told, we continue with our cautious-but-flexible stance: Right now, we favor only small positions and plenty of cash, though we’re willing to quickly change our tune. We’ll leave our Market Monitor at a level 5.

This week’s list is mostly energy and AI related, though as has been the case lately, there’s something for everyone. For our Top Pick we’re going with a little-known networking play that’s showing excellent strength and looks well suited for the emerging agentic AI boom.

Ahead of the long holiday weekend the market had yet another good week. The S&P 500 gained 1.75%, the Dow rallied 1.5%, and the Nasdaq rose another 1.9%.

This week in an attempt to diversify the portfolio we are adding an energy play.

Before we dive into this week’s idea, I wanted to clean up our SHLS and ASO positions from last Friday’s January expiration.

The bull market is still in full effect, but we’re seeing more air pockets in some leading titles. These four rules can help you keep your cool in a hot market.

Multiple buy-side analysts asked about the AI return on investment (ROI) in Nvidia’s most recent earnings call; it’s a billion-dollar question.

Last week’s “big” market-moving events (Federal Reserve and Jobs Report) brought further selling as the S&P 500 fell 3.25%, the Dow lost 2.25%, and the Nasdaq dropped 5.88%.

Despite the market coming under pressure in the last several weeks, the Cabot Profit Booster portfolio continues to perform spectacularly! And heading into expiration this Friday, our five May covered calls are all in terrific shape, and potentially on track to their full profits. As is always the case, I will update you where we stand with these positions on Friday morning.

April was another strong month for the Cabot Profit Booster portfolio as we locked in gains ranging from 3.7% to 7.9% on our six positions. Speaking of earnings, this week’s pick is a recent earnings season winner that busted out to a new high following reporting quarterly results.

The market has generally taken a bit of a breather, with the major indexes relatively flat for the week as of this morning.

To become a successful investor, it’s important to admit your own investing bias, and to understand it. Here are a few of my own investing biases.

Today’s note includes ratings changes, the podcast and the Catalyst Report. We publish the Catalyst Report on the Friday after each monthly issue of the Cabot Turnaround Letter.

It’s been another constructive and encouraging week for the market in our view. As we write this morning, the S&P 500 and Nasdaq aren’t up much on the week (0.4% or so), but given that we just had five weeks in a row on the upside, we take the calm action as a plus.

Tesla bypasses the existing auto dealership structure and sells directly to the consumer which at least avoids additional cost dealer would tack on.

I recommend diversifying your portfolio with an allocation of 50% value stocks and 50% growth stocks.

If the market is telling you that you’re barking up the wrong tree, what are you supposed to do?

The U.S. energy boom is in full swing, and that makes high income energy stocks a wise long-term investment. And these three are the strongest in years.

Today’s Investment of the Week features the second installment in our occasional series of interviews with contributors to the Dick Davis Digests. This week, I’m talking to John Buckingham, chief investment officer at Al Frank Asset Management and editor of The Prudent Speculator. Here’s what he had to say. Chloe Lutts:...

Here at the Dick Davis Digests, July means one thing: It’s time to update our subscribers on this year’s Top Picks! At the end of last year, we asked all our contributing experts for their #1 stock pick for the coming year. This year the response was bigger than ever,...