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Novo Nordisk (NVO) stock was an early winner in the weight-loss drug race but has struggled mightily this year. Has performance been weak enough to make it a buy?

Current Market Outlook


The major indexes bounced decently last week, though that was quickly given back today as the sellers reappeared. Day-to-day volatility is likely to remain high as the market remains news-driven (the 50-day average of the VIX volatility index is the highest in two years), but the bottom line for the overall market is simple: All of the major indexes we track are below their key intermediate-term moving averages, so until proven otherwise, the trend is down and you should remain cautious. As for individual stocks, many are still in good shape, but with the sellers in control, any buying should be kept small and all stops should be honored. We’re nudging down our Market Monitor another notch to reflect the growing selling pressures we see.

This week’s list does contain a bunch of solid charts despite the market’s carnage, which is an encouraging sign. Our Top Pick is Lululemon (LULU), which is one of many resilient retail names and has just gapped up on earnings.

Stock Name	Price	Buy Range	Loss Limit
Energen (EGN)	77.04	59-61	55-56
Five Below (FIVE)	134.58	70-73	64.5-66.5
Guess (GES)	0.00	19.5-20.5	17.5-18
Kohl’s (KSS)	70.62	61-63	56-58
Lululemon Athletica (LULU)	304.69	85-88	80-82
Okta, Inc. (OKTA)	148.41	37.5-39.5	34.5-36
Petrobras (PBR)	14.78	13.2-14.2	12.1-12.8
Shutterfly (SFLY)	94.71	76-79	70-72
Smart Global (SGH)	0.00	46.5-49.5	42-44
Wix.com (WIX)	302.53	74-77.5	68-71

Current Market Outlook


Usually when the market is stretched and sentiment is complacent, the market latches onto a reason to retreat, and last week provided it, with the Middle East conflict offering an excuse for sellers to get active and buyers to pull in. The good news is, thus far, the retreat has been reasonable—the major indexes are still even above their 25-day lines, and few stocks have cracked key support or flashed any abnormal action. That said, we’re leaning toward the view that, Iran or not, the short-term is likely to remain tricky, with rotation, potholes and news-driven moves likely to be the norm for a while. Thus, we remain bullish, but continue to advise picking your spots—many stocks have etched nice month-long rest periods, though some others probably need time to consolidate.

This week’s list has a bunch of names that haven’t appeared in Top Ten for a long time (if ever). Our Top Pick is Alibaba (BABA), which has finally kicked back into gear after a long time in the wilderness. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Alibaba (BABA)	254.81	208-216	192-196
Bilibili (BILI)	28.71	20.5-22	18.5-19.5
Coupa Software (COUP)	262.20	157.5-162.5	143-146
Eldorado Resorts (ERI)	0.00	56-58	51-52
Global Blood Therapeutics (GBT)	0.00	76.5-80	66.5-68.5
Lumentum (LITE)	87.00	76-79	69.5-71
SolarEdge Technologies Inc. (SEDG)	124.37	95-97.5	86-87.5
Tenet Healthcare (THC)	0.00	35.5-37	32.5-33.5
WPX Energy (WPX)	0.00	13.2-13.7	11.7-12.0
Scorpio Tankers (STNG)	0.00	37.5-39	33.5-34.5

The strength of the past couple of days has turned our Cabot Tides bullish, where it joins the Cabot Trend Lines and Two-Second Indicator. Thus, after a seven-week rest, it appears the market’s major uptrend is resuming and we want to put some new cash to work.

“The Advisory Board Company (ABCO) provides best practice research and analysis, business intelligence and software tools and management and advisory services to the healthcare and education industries. The company’s main customers are hospitals who pay the Advisory Board yearly subscription fees to access its best practices research and...

The Russell indexes just added some new names. Often those are some of the best small cap stocks to buy. Here are a few that I like.

In today’s Stock Market Crash Course, we hear from several technical analysts who say a bull market is either here or just around the corner, including Clif Droke, John Gray, Mike Cintolo and Richard Rhodes. Click below to watch the video!

“We are reiterating our BUY rating on Tractor Supply Co. (TSCO) and raising our target price from $78 to $84. We believe that the company remains the leading farm and ranch retailer, with favorable near- and long-term growth prospects. To increase gross margins, management is focusing on private-label...

Position update: This recommendation’s covered call has seen extreme volatility the past several days.

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.

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.

Ongoing problems in China’s travel industry are concerning me enough that I am moving one of our stocks from Strong Buy to Hold.

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 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.

One stock reports strong fourth quarter and moves from Strong Buy to Hold.

We are moving shares of Marathon Oil (MRO) from Buy to Sell.

“The Goodyear Tire & Rubber Company (GT) shares are down sharply from their $18.25 a share July high. The tire maker’s fundamentals are on a sound footing and the decline represents a buying opportunity. In the second quarter, Goodyear left analysts’ forecasts in the dust by reporting revenue...