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COVID-19 and technology have triggered some major changes in how we shop, these three supermarket stocks look best suited to handle a changing and dynamic industry.

After a couple of months of strong action, the long-awaited market pullback has gotten underway, and not surprisingly it’s been a bit of a doozy.

As you digest your Thanksgiving turkey, here are a few stock market thoughts - and a drink recommendation! - to get you through the weekend.

It’s been a mixed week with lots of volatility, though most indexes are down a bit since Monday. As we write this, the S&P 500 is down about 0.8% for the week, while the Nasdaq is up 0.6%.

Tuesday there were some rays of sunlight amidst the storm, but until proven otherwise, we are in a bear market and should proceed with caution. This brings me to this week’s trade, which is a defensive trade on a recent outperformer, that we recently traded successfully

The first half of 2022 came to a close last week, and the numbers weren’t pretty; the S&P 500 fell 20%, the Dow was lower by 15% and the Nasdaq declined by 30%. How the second half of the year will play out is anyone’s guess. However, until stocks show any real signs of sustained momentum, I will continue to keep the portfolio diversified, and will lean defensive with our options selling strategy

Don’t expect this volatility to subside this week, as the Federal Reserve, economic data releases and a heavy earnings calendar will have traders on their toes.
This week, in an effort to keep the portfolio diversified, I’m adding a pharmaceutical play, AbbVie (ABBV).

Being oversold doesn’t automatically make stocks a bargain, but if you’re bargain hunting, oversold stocks are a good place to start.

One of our stocks reported a third-quarter earnings beat, and steel stocks are up.

Finding an enduring stock to buy means identifying services that are essential in any economic environment, and this SaaS stock offers authentication services that are critical to software companies of all sizes.

The so-called “Sell in May” period is underway, but that doesn’t mean you should stop buying stocks. Here are three Sell in May Stocks you can buy now.

This is one of those periods when there’s not much going on in the market. Earnings season is essentially over, the summer is winding down, kids are about to go back to school and it feels like fall is right around the corner.

Market timing is a big part of investing. But you don’t have to wait for the perfect time to buy stocks if you’re in it for the long haul.

Baidu stock used to be one of my favorite investments in China. But right now, it’s a falling knife. Don’t try and catch it!

Nike stock got roughed up on Monday after the company unveiled a controversial new Colin Kaepernick ad campaign. It may have created an idea entry point.

Option liquidity is a major issue in a stock like INVN versus GE. On average, GE trades close to 100,000 options per day. INVN on the other hand, only trades a couple thousand contracts a day. The time until expiration is another key component to the option width.

America’s infrastructure is badly in need of costly repairs. And these four infrastructure stocks and ETFs stand to benefit.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the February 2021 issue.

This month we look at energy pipeline stocks. These companies are heavily out of favor, yet a secular shift in their strategic priorities may finally restore their appeal. We list five that look attractive.



We also explore some bargains in the United Kingdom. This island nation is dually challenged by Brexit and the pandemic. We highlight seven stocks that have company-specific turnarounds that look promising.



Our feature recommendation is Viatris (VTRS). Created through the recent merger of Mylan and Pfizer’s Upjohn division, this company is now one of the world’s largest generic pharmaceutical manufacturers. Viatris should generate stable revenues and solid free cash flow, but investor skepticism is high. With the shares trading at a low 4.3x earnings, the step-up in leadership quality and transparency, and an attractive 5.2% dividend yield, the shares look poised for considerable gains.



We also include comments on recent price target and ratings changes, including our earlier sell recommendation on DuPont.



Please feel free to send me your questions and comments. This newsletter is written for you. A great way to get more out of your letter is to let me know what you are looking for.



I’m best reachable at Bruce@CabotWealth.com. I’ll do my best to respond as quickly as possible.

The cannabis sector remains in a correction, with both marijuana and CBD stocks trending lower, giving up some of their early-year gains—and perhaps building a bottom here.

In the meantime, more and more peripheral companies are getting in on the action, and we have been increasing our exposure to these in recent weeks while still holding substantial cash.

This week we’re selling one more of the pure-play marijuana companies, raising the portfolio’s cash level to about 27%.

Full details in the issue.

Current Market Outlook


The market came close to giving an all-clear signal last week, but the endless U.S.-China trade flareup knocked the market back on Friday. Despite the headlines, we still don’t see the environment as a total disaster—the indexes themselves are still holding above their recent lows, and many individual stocks (and most we’re following) are actually more resilient than that. But the bottom line is that little money is being made, and with the intermediate-term trend continuing to point down, you should remain in a cautious stance, keeping new buying on the small side and holding some cash. From here, we’re open to anything—given the pervasive pessimism, a new uptrend wouldn’t shock us, but the onus remains on the bulls to prove they are retaking control before we become more constructive.

This week’s list has a wide mix of stocks that have resisted the market’s downward pull—with some actually advancing despite the environment. Our Top Pick is MasTec (MTZ), a stock we missed a couple of weeks ago but think it can have a sustained advance due to its exposure to many strong markets.

Stock Name	Price	Buy Range	Loss Limit
Allakos (ALLK)	77.83	80-84	66-69
Blackstone Group (BX)	49.12	47.5-49.5	42.5-43.5
D. R. Horton (DHI)	66.55	48-49.5	44.5-45
HubSpot (HUBS)	582.89	196-200	178-182
Keysight Technologies, Inc. (KEYS)	97.20	92-95	83-85
LivePerson (LPSN)	58.55	37-39	33-34.5
MasTec, Inc. (MTZ)	66.65	59-61	53.5-54.5
Pinduoduo (PDD)	87.53	28-30	24-25.5
Synopsys (SNPS)	137.53	133-137	122-124
Target (TGT)	124.77	101-105	91-93