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There is earnings news on several of the stocks in the portfolio.

Three stocks in the portfolio reported earnings.

It’s been a mixed week for the market. On one hand, we like some of the support seen in the major indexes and some key leading stocks this week, especially given the numerous intraday dives that occurred.

A strong dollar has helped cap some inflationary pressures in the U.S., but with the arrival of volatility in currencies you should consider these investments as hedges against an uncertain dollar.

SThe story of the broad market is much the same as it has been in recent weeks. To wit, rotation continues across several industry groups while the major averages remain stuck in a lateral range. Things should start to heat up as we head further into the earnings season, though we’re not advising any major change in stance just yet.

This week’s list includes a nice mix of key industries that are benefiting from major fundamental and economic trends. Our Top Pick is a stock that should get a boost from accelerating interest in online foreign language learning.

China’s economy improved in the third quarter, and a slew of U.S.-listed Chinese stocks have been market leaders in New York.

“Water purification companies fall into a large lump of highly regulated businesses known as utilities. While the utility sector is boring, shares of utility stocks have been lighting portfolios up in 2011. Utilities are one of the very few sectors that offer shelter during severe economic downturns. And utility stocks...

from Chris Temple, The National Investor Nuance (NUAN) has been a timely and solid addition, rising about 40% following our entry back in December. The company has showed some early success in changing to a subscription model and—especially recently—fresh rumors of a possible buyout (Samsung emerging as a potential suitor) or...

Last week saw buying climaxes at 41 with selling climaxes at 46. Fairly subdued levels as the range-bound action on the indices continues. Buying climaxes were greatest among Health Care (4), Banks (3), Media (3), Biomedics (2), Buildings (2), Retailing (2),...

Cabot received Best Financial-Advisory Newsletter Award for second consecutive year.

Tinder is the fastest-growing dating app, and Match Group’s (MTCH) sales are skyrocketing now that the company has figured out how to monetize it.

This week Chris and Brad talk about the latest Chinese GDP numbers and whether it’s safe to invest in China, Tesla’s earnings release, and what they’re seeing with Regional banks now that they’re reporting. After that, they break down FAANG stocks, their popular ascent as market shorthand, and whether Microsoft is “sexy” enough to sit at the cool kids’ table.

Moving Ironwood Pharmaceuticals (IRWD) to Sell

This morning brought some broad buying to the market, though not enough to reverse the negative signal by our intermediate-term trend-following indicator last week. And that means that raising cash—by selling your weakest growth stocks—is still a good idea.

For Cabot Stock of the Week, I’ve singled out three to sell today (Big Lots - BIG), (RingCentral – RNG) and (Global X Cybersecurity ETF – BUG), but you may have others in your own portfolio.



As for new buying, this week I’m going with a low-risk recommendation from Cabot Dividend Investor, which has a good growth story and pays a 3.1% dividend.

The market’s main trend remains up, and thus I continue to recommend that you be heavily invested.

At the same time, it’s important (as ever) to monitor your individual stocks and prune any from your portfolio that no longer deserve to be there. In our portfolio, Berkeley Lights (BLI) is being pruned this week, for a small loss.



As for today’s recommendation, it’s a fast-growing consumer streaming service that came public in 2018 and has hit new highs recently—and you may be familiar with it.

Last week’s sharp market selloff may have made headlines, but far more important than any one day’s action are patterns and trends, and today the patterns and trends I look at are still positive.

Still, diversification remains a key factor in successful portfolios, so today’s recommendation swings back to the conservative side; it’s a big global company with a healthy 4.8% dividend.



As for the current portfolio, while we sold two stocks last week just before the big drop, today I have no changes. All our stocks are behaving well.



Full details in the issue.

2018 banking regulatory reform will lead to 2019 earnings boosts, benefiting four of our stocks.

Cabot analyst Tyler Laundon writes the introduction to this week’s update. Unsurprisingly, it related to small-cap stocks, which is Tyler’s focus in Cabot Small-Cap Confidential. One rating change.

Today’s recommendation is a medical device company whose one product—an insulin delivery system for diabetics—is growing market share rapidly.