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Brendan Coffey sees opportunities for good buys on solid Green companies with excelllent growth potential.

As we’ve been writing, there were many positive vibes building in the market through February and early March, and then the two-and-a-half week rally from there was very encouraging, triggering a blastoff-type measure and turning the intermediate-term trend up.

Janet Yellen and the Fed eat up a lot of financial headlines these days. But what investors should really be paying attention to is much simpler.

Not many people will claim this was a great week, including us, but taken in combination with last week’s action, and we’re actually optimistic that Monday was the workable low we’ve been looking for. It started, of course, with some real extremes seen last week, including nearly 34% of Nasdaq issues hitting new lows (January 24) and 86% of Nasdaq stocks closing below their 200-day lines (January 27).

After a scary plunge on Monday, the market has finally gotten off its knees and staged its first solid bounce since the meltdown began in early October.

This week we are going right back to a stock that we were involved with last month, which has handled the market weakness very well.

This Friday is the expiration of our December covered calls, and I am happy to report that all five of our positions are in good/great shape. As is always the case, expect an email from me Friday morning breaking down where we stand with each position.

Well, the market’s small dose of good action for the second half of December was mauled by the bears this week—all indexes are down at least somewhat, and among growth-oriented titles from a variety of sectors (tech, cybersecurity, solar, software, retail, you name it), it’s been nothing short of a mini-crash, with the Nasdaq down 3.5%, growth-oriented indexes down 5% or more and many individual titles off 15% to 20%.

Small caps have been lagging, and have failed to return to their 2018 highs, for too long. If the asset class can get back in gear, we’ll have more things working in the market for risk-tolerant investors (that’s us!).

2022 went out with a whimper for the market as the indexes posted one of their worst years on record.

Net-net, it’s been a quiet week for the major indexes, with most up or down less than 1%. That said, there are some interesting things happening under the market’s surface.

This week has been another volatile and news-driven one, with some quiet trading Monday and Tuesday, wild action with the Fed and the Treasury Secretary’s commentary on Wednesday with another wild swing on Thursday (up, then back down) and some selling this morning. Interestingly, though, the major indexes haven’t moved much net-net—as of this morning, the S&P 500 is flat, the Nasdaq is up less than 1% and the broader indexes are off less than 1%.

Ahead of a big week for the market, the S&P 500, Dow and Nasdaq all rose marginally last week.

Of the many scenarios I considered for Enovix (ENVX) following Q3 earnings, seeing the stock down 40% was way down the list. Clearly the risks are relatively high with a stock like this – not unlike an early-stage biotech company – but so too are the potential rewards.

Sell ATI (ATI) For a Quick 15% Gain; Krystal Biotech (KRYS) Reports

A letter from the desk of President & Publisher Ed Coburn on the state of the market, the most exciting news at Cabot, and guidance to set the stage for a successful October for investors.

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.

In the March Issue of Cabot Early Opportunities we talk honestly about the current state of the market and what to do now.
I also cover five opportunities that continue to pique my interest. I have a familiar software stock that’s been resilient lately, an alternative energy supplier that could help reduce Europe’s reliance on Russian energy, a pharma company set to make big moves over the coming years, an early-stage electric vehicle play, and an innovative MedTech company that’s growing like a fertilized weed in early spring.


Enjoy!