Search

Following a monster week of earnings, a Federal Reserve interest rate hike, and the January Jobs report, “risk on” continues to be the theme in early 2023 as the Nasdaq once again led the indexes higher.

When Warren Buffett talks, it’s time to listen. So with Berkshire investing in solar companies, it’s time to look at these clean energy ETFs.

While this morning is a bit of a downer, the week as a whole has been a great one for stocks, with the major indexes up in the 2.5% to 5% range generally speaking. But more important to us is where that strength has taken the indexes—specifically, above their December highs, which turns the market’s intermediate-term trend up.

WHAT TO DO NOW: The market continues to improve its standing, with our Cabot Tides now positive and, barring a meltdown tomorrow, a green light is likely from our Cabot Trend Lines, too. Individual stocks remain trickier, especially on the growth side of things, so we’re not cannonballing into the pool. But with things looking better we’re continuing with our path of putting money to work. Tonight, we’re adding a new half-sized position in Las Vegas Sands (LVS), filling out our stake in Academy Sports (ASO), and putting another 3% position into ProShares S&P 500 Fund (SSO). That should leave us with around 50% cash; we hope to deploy more of that in the days ahead.

Pinterest (PINS) reported Q4 results after the bell yesterday that were lighter than expected but don’t change the story of a company streamlining operations and tweaking the platform to drive modest user growth and, as a result, higher advertising revenue. Pinterest is also growing internationally.

Today we are moving shares of Dow (DOW) from Buy to Sell. As the shares have reached our 60 price target, and with no compelling reason to raise that target, we are moving the shares from Buy to Sell. This change will also be made in the Cabot Turnaround Letter.

This week has been taking place in the shadow of last week’s market-moving events.

Of course, I’m talking about the FOMC meeting and the resulting 25bps hike, followed by Jerome Powell’s press conference where the term “disinflation” reverberated around the conference room over and over. The event sent the market higher in a risk-on rally that extended the move from the day before.

Following a monster week of earnings, a Federal Reserve interest rate hike, and the January Jobs report, “risk on” continues to be the theme in early 2023 as the Nasdaq once again led the indexes higher.

As Congress struggled with raising the debt ceiling, the excess of Federal spending over tax revenue totaled $459 billion through the first four months of the fiscal year (started October 1, 2022). Meanwhile, the strong dollar is a drag on multinational earnings. Today, we explore a fascinating company and stock that leverages artificial intelligence to accelerate biotech development.

I don’t love the action in Procept (PRCT) this week. While the broad market has been acting well and a lot of “risk on” stocks have gone up, shares of PRCT have headed south.

Throughout U.S. history, federalists and states’ rights advocates have battled it out. Federalists believe in strong centralized power. The other side wants issues to get resolved locally. Federalists are usually on the left, and states’ rights advocates are normally conservatives. But not always. It depends on the issue.

The market is making some noise so far this year. And in a good way. The S&P 500 is 7.7% higher and the Nasdaq is up 14.7% YTD. Is this real, or just another head fake?


The rally is being prompted by increasing optimism of a soft landing, where inflation falls without the economy falling into recession. Previously pessimistic pundits are now embracing the possibility. And there is some evidence to back up the soft-landing scenario.

Despite concerns coming into 2023, the U.S. economy is showing a degree of strength that continues to bode well for investors.

Inspire Medical (INSP) delivered yet another better-than-expected quarter after the closing bell yesterday as Q4 results came in near the high end of management’s pre-announced range.

Investors are always looking for the latest and greatest trading strategy. Unfortunately, many overlook my favorite options strategy to generate premium regardless of market direction.

Tesla dominates the U.S. EV markets but China’s BYD has them beat in numbers sold. Let’s look closer at the battle of BYD vs. Tesla.

January was up. February was down. What’s next?


The S&P 500 rallied 6.2% in the first month of the year but pulled back 2.3% in February (as of Monday’s close). The market is still in positive territory YTD. But that could change.

It’s been a relatively quiet week in the market, with the major indexes mostly up in the 1% range after this morning’s open, though the action has been news-driven as every economic report and Fed speech is picked over for clues to the path of interest rates.

Yesterday was Tesla’s annual investor day and it seems it came up a bit short regarding specifics.

Elon Musk started with a big number even by Washington standards, suggesting that realizing the vision for an energy transition could require some $7 trillion of investments in electric-vehicle manufacturing.

Stocks that pay a high dividend are likely to outperform in the “new normal” of higher interest rates, and these are two of my favorites.