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The story remains mostly the same once again—coming into today, the big-cap indexes are relatively flat, but anything with exposure to names outside of a few mega-caps is down in the 1.5% range. (Even within the S&P 500, the index is down 0.14% coming into Friday, while the equal-weight S&P 500 is down 1.12%.)

Mega-cap tech again outperformed last week, while the banks continued to look suspect/horrible, and the action under the surface is flashing warning signs.

After a brief run-up prior to the latest SAFE Banking hearing, marijuana stocks “sold the news” on the day of the event.

This week is the expiration of eight of our positions. Expect to hear from me on how we will manage these trades Thursday afternoon or Friday morning.

Explorer stocks were steady or slightly down this week but don’t get discouraged. It is likely that Fed interest rate hikes have ended and, combined with a debt ceiling deal, could ignite a rally. Next week I will give an update on our three Explorer ETF positions.

The unemployment rate for Chinese people ages 16 to 24 rose to a record of 20.4% last month. The rate of youth unemployment in China has consistently been two or three times higher than the general population. Not a good sign.

The Arctic Circle is heating up as China, Russia and the U.S. all jockey for supremacy in the region while offering a unique opportunity for investors.

Apple’s (AAPL) consumer loyalty and brand quality offer appeal to every investor, but are the shares attractive to a value investor?

In the May Issue of Cabot Early Opportunities, I profile a potential turnaround story in a well-known stock that is returning to its roots.

We also take a closer look at one of the highest-end luxury brands in the world, an unknown green tech company, an emerging MedTech star and a construction materials specialist that’s spreading across the U.S.

Enjoy!

WHAT TO DO NOW: The overall market remains mixed, but the under-the-surface action remains a meat grinder, with numerous stocks getting chewed up after making big swings. Today, we’re cutting loose On Holdings (ONON), which had a great Q1 but has nevertheless seen sellers swarm. This will leave us with more than 70% in cash, which is too high given the evidence, so we may have a new addition or two in tomorrow’s issue, though we’ll have to see how it goes given the continued air pockets among potential leaders.

No banks imploded this week, and there are rumors that the folks in Washington are making progress on a debt deal. Plus, we think the Fed may just pause for a bit, if not be done hiking rates.

Add it all up and the broad market is inching higher.

So far, the small-cap index is being left behind. That’s because of the high weight of financials and energy, and those two sectors look terrible in small-cap land.

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.