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A straddle is a good options strategy to pursue if a trader believes that a stock’s price will move significantly, but is unsure of which direction.

Technology stocks took a hit on Monday when the Nasdaq posted a concerning reversal. However, the current evidence doesn’t yet suggest that we should be moving materially more conservative. That said, we’re not going to chase every hot stock right now. This month’s Issue of Cabot Early Opportunities seeks to offer a balance of rapid and modest growth from fresh faces, including some that have yet to break out and run wild (as many tech stocks have).

If all you own is the S&P 500 or the Nasdaq, this was another relatively quiet week—as of this morning, the S&P is about flat, and the Nasdaq is off less than 1%. But that action masks what was a lot of turmoil under the surface: Mid-caps (down 2%) and small caps (down 3.5%) were hit hard, and the damage was acute among growth stocks, with things like the Russell 2000 Growth Fund (IWO) down 4.7% and the Ark Innovation Fund (ARKK) off more than 7%!

As for market performance, speculative and growth areas continue to struggle while stocks tied to rising rates and cyclicals managed to garner the most attention from buyers. However, the recent short-term rally could see higher-beta areas come back into play.



Today, I’m adding Corning (GLW), which reported blowout earnings last week.

Dividend payments are the traditional avenue for income investors, buy stock buybacks have been attracting investors at a higher rate in the last year.

It’s always interesting to be in my shoes during market downturns. As editor of the Dick Davis Digests, I spend the majority of my day reading what our hundreds of contributors are writing. As corrections begin to develop, they exhibit a variety of responses. The perma-bears say, “I told you...

By its very nature, growth investing requires a higher amount of risk tolerance and at least a pinch of optimism.

The 7 biggest S&P stocks have generated nearly all the index returns; it’s time to look for value in the other 493.

7 mega-cap tech stocks have thrived this year, driving the S&P into a new bull market, value investors are better served looking at the other 493.

The market’s had a wild week, as early on it continued last week’s decline, driving some indexes (including the S&P 500) back down to their rising 200-day lines and hitting some of the market’s leading stocks hard. The rally yesterday was helpful, though this morning’s reversal is far from ideal.

When it comes to the overall market, the song remains the same—the major indexes are in steep uptrends, our trend-following measures are bullish and many longer-term indicators and studies point to the bull market having months of upside ahead.

We’re encouraged but not yet fully bullish. If the market and leading stocks can hold (or build on) their gains next week, then the odds would improve that the longer-term uptrend is resuming. At this point, we’ll likely bump up our Market Monitor a notch or two next Tuesday, and further strength could have us flooring the accelerator.

Crista reports good earnings announcements in five portfolio stocks.

It’s been a modestly positive week, with most major indexes and leading stocks posting gains. As we write this Friday morning, the S&P 500 and Nasdaq are up less than a percent on the week, but both have hit new all-time highs this week.

If you see some low-risk entry points among Top Ten stocks, go ahead and take them. But it’s also a good idea to keep some cash on the sideline.

Simply put, the action of this week has been very encouraging. Stocks have had a lot of bad news thrown at them, from uncertainty with future Italian elections (and the possibility of leaving the euro) to similar worries in Spain (the prime minister just got voted out) to the flare up of trade tensions again yesterday (tariffs and retaliatory tariffs being bandied about).

The market’s been running hot for a while, but these trading maxims can help you identify fresh opportunities, especially if growth stocks pull back a bit.

Markets had held up pretty well—weathering inflation and interest rate worries—until the last week of February, when Russia’s Putin decided to invade Ukraine. That radical move sent the markets roiling with some pretty hefty drops and increased volatility. But action today was impressive, with the Dow Jones Industrial Average up almost 600 points, the S&P 500 up 80, and the Nasdaq up 219.

The market remains all over the place, with news- and rumor-driven action pushing the indexes and individual stocks around every day. Our biggest thought remains that, while there’s plenty of evidence that tells us the next major move is probably up, the current environment remains extremely choppy with few stocks hitting new highs and little real money being made. Thus, we remain cautious, holding plenty of cash and going slow on the buy side—although we’re always keeping our eyes open for a sustained turn higher. In the Model Portfolio, we’re a bit more than half in cash and are building our watch list for the next advance.