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Five of the stocks in the portfolio have reported earnings.

Starbucks (SBUX), Dutch Bros (BROS) and Luckin Coffee (LKNCY) are all competing for market share, but which is the best coffee stock in the world?

Bull risk reversals are the trade of choice for hedge funds that want to put on huge bullish positions these days. However, the trades are extremely bullish, and if the trade goes wrong, it can go bad in a big way.

These basics will help any growth investors improve their portfolio results.

Looking for an investment that offers steady income? Look no further than REITs (Real Estate Investment Trusts) for a win.

A Covered Call is a strategy in which the trader holds a long position in a stock and writes (sells) a call option on the same stock in an attempt to generate income.

Health care is one area where expenditures grow, rather than decline, with age. And while higher health care spending isn’t a good thing, and it would be great to see per capita health care spending diminish, you can’t argue with demographics. One implication is that while most retailers increasingly will struggle,...

The market has been ripping higher with broader participation from sectors that weren’t doing much a couple months ago. That’s the good news. And it’s showing up in the charts with the Small Cap Index at multi-month highs (but well below all-time highs). IPOs are starting to find their legs too. The not-so-good news is that the market is looking a little stretched, which could mean a pause or pullback is coming sooner rather than later. But, the market has a way of doing the unpredictable and with so many investors thinking it’s time for break we could see just the opposite. This month we try to play both sides of the ball by spreading things around in different sectors and across market caps. There’s some IPOs, some high growth software and MedTech ideas, and another growth + value name. They all have their own qualities and stand out to me for different reasons right now.

Any surprising event of substance can affect the stock market, even if it’s only for one day. The biggest reason that non-financial events, such as the Zika virus, Mrs. Clinton’s health, Y2K and the Brexit vote impact U.S. stock markets is because U.S. news media latch onto these topics and cover them incessantly, giving the general public the impression that these pieces of news are vitally important.

Value stocks are starting to gain traction.

No, they’re still not outperforming growth stocks. But the 10.5% year-to-date gain in the Vanguard Value Index Fund (VTV) puts it on track for its best year since 2021, and potentially its third-best year in the last decade. That’s progress. And much of the progress has come this month, as the previously thin bull market rally has spread to the myriad unloved non-tech sectors. Value stocks are up more than 3% this month, outperforming growth stocks (as measured by the QQQ ETF), which are flat in July.

Last week, the Hong Kong Monetary Authority hosted hundreds of bankers including the heads of 90 global financial institutions to discuss the current status and future outlook for the world’s capital markets. Despite the increasingly tight grip that China has on Hong Kong, which is leading to a diminished relevance for the island state, notables including Morgan Stanley CEO James Gorman and Goldman Sachs head David Solomon participated in the in-person meetings. The draw: Hong Kong remains an important gatekeeper for access to mainland China’s financial markets.

Tesla (TSLA) has had a rough start to the year. Entering Wednesday, TSLA shares were down nearly 42% year to date thanks to a bitter cocktail of sagging revenues, narrowing margins, and increased competition, especially in China. At the start of this week, TSLA shares had dipped to 142, a 52-week low, and were trading at their cheapest valuation on a price-to-earnings basis since last May and on a price-to-book-value basis since 2019.

As readers may know, we are generally not the biggest fans of private equity. Our biggest concern is that, while earlier private equity and venture capital funds were remarkably successful in identifying and capturing highly profitable investments for their clients, more recent vintages, going back perhaps 10-20 years, have mostly produced large profits for the fund managers. News that many Johnny-Come-Lately funds will actually lose significant money on the Instacart IPO highlights this problem. High-quality and early movers will likely post enormous profits.

It was a rare rough December for stocks.

Sure, the S&P 500 and the Nasdaq were down just over 2%, propped up as usual by enduring strength in the Magnificent Seven. But the losses were far greater in almost every other corner of the market, with 10 of the 11 major sectors declining, small caps tumbling nearly 8%, value stocks off by more than 6%, and energy and materials stocks retreating by double digits.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Centuri Holdings (CTRI), Janus Henderson Group (JHG), Paramount Global (PARA), Starbucks (SBUX) and Teladoc Health (TDOC).


This month’s catalyst report features a mixed bag of attractive turnaround candidates in several industries, including software, healthcare, luxury retail and chemicals.

Current Market Outlook


The evidence has been steadily improving, but July has changed that—first came a lot of narrowing (most stocks below their 50-day lines even though the big-cap indexes were near new highs) along with a lack of breakouts, then came last week’s selling pressure (that saw many growth stocks show real slippage), and today we saw the sellers really start to hit things left and right. On the positive side of things, many growth titles were resilient today, and we still see a good number of setups out there; given that there are renewed fears of the virus, it’s possible many growth titles could do well even if the market has a rough go of it. But right now, the onus is on the bulls as the market’s intermediate-term trend has turned down and most stocks look iffy. We’re moving our Market Monitor to a level 5 but are keeping our eyes open for what comes next.

This week’s list is a mix of names, though some of the growth titles look like decent risk-reward situations on this dip. One of them is Marvell Technology (MRVL), a leading chip maker that’s pulling back normally after a persistent move to new highs.

Stock Name	Price	Buy Range	Loss Limit
Autodesk (ADSK)	287	284-290	270-274
Avantor (AVTR)	36	35-36.5	32-33
Bruker (BRKR)	78	76-78	70-71
Burlington Stores (BURL)	311	307-313	290-295
Chipotle Mexican Grill (CMG)	1551	1520-1560	1400-1425
CrowdStrike (CRWD)	250	247-253	223-226
Dexcom (DXCM)	435	425-438	390-395
Horizon Therapeutics (HZNP)	92	90-93	84-85.5
Marvell Technology Group (MRVL)	55	53.5-55.5	48.5-49.5
Revolve Group (RVLV)	64	62.5-65	56-57.5

The much-anticipated market dip finally arrived last week, and so far, when you look at the leadership of this market—the Nasdaq and leading individual stocks—the action has been completely normal, and in fact, seems to be producing some higher-odds entry points as names dip toward support. Once again, though, we need to keep a close eye on the broad market—the intermediate-term trend remains up, but it’s getting close to the edge, with another bad week possibly putting the broad market back in the soup. We’ll leave our Market Monitor at a level 7 today but we’re watching things closely in case weak breadth causes the selling pressures to build.

This week’s list has a growing number of pullback-related setups. Our Top Pick quacks like a new technology leader that’s pulled back reasonably after a strong rally. It’s volatile, so start small and use a loose leash.