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The most bullish thing a market can do is go up, and that’s what this market continues to do, with the Dow and most other major indexes at (or close to) all-time highs. Now, we saw the usual trumpeting of the new high in the Dow last week by the media, and that often coincides with some choppiness in the market; then again, there’s a distinct lack of greed, with most investors still seeking safety and avoiding risk. Bottom line, we’re keeping our Market Monitor bullish, and while a pullback is always possible, you should be looking to buy as opportunities arise.

This week’s list has a few newer names (to us) from a variety of industries, including REITs, autos, housing and media. But our favorite of the week is Workday (WDAY) a recent IPO that just broke out of a beautiful base, has rapid sales growth and is operating in a huge market.

Stock Name	Price	Buy Range	Loss Limit
Workday (WDAY)	194.88	59-62.5	-
Uni-Pixel (UNXL)	0.00	21-24	-
Time Warner (TWX)	0.00	54-56.5	-
PBF Energy (PBF)	38.93	36.5-38	-
Medical Properties Trust (MPW)	0.00	14.3-14.9	-
The GEO Group (GEO)	0.00	34.5-35.5	-
Fortune Brands Home & Security (FBHS)	81.02	34-35.5	-
Delphi Automotive (DLPH)	0.00	41.5-43.5	-
Discovery, Inc. (DISCA)	0.00	74-76	-
AOL, Inc. (AOL)	0.00	35.5-37	-

The selling continued on Wall Street this past week, which has us trimming two more positions in the Stock of the Week portfolio. But most of our stocks are holding up well, and two in particular – Centrus Energy (LEU) and Ulta Beauty (ULTA) – are thriving. Today, we add a stock that not only insulates us a bit from all the selling, but also broadens our international exposure. It’s a value play, courtesy of Bruce Kaser, that’s also growing – up 24% this year!

Details inside.

The bull market is alive and well, but the growth stock environment remains tricky at best, with more names either testing or cracking intermediate-term support during the past couple of weeks. Eventually, there will be another run in growth, possibly soon given the many stocks that have built launching pads during the past two-plus months; we do have an expanding watch list of solid setups. But for now, we’re playing things cautiously, trying to give our positions a chance but also holding a good chunk of cash until the meat-grinder environment shifts.

The concept of applying market timing and relative strength to mutual funds was the original idea behind The Chartist Mutual Fund Letter. Simply put, the editors believed that the basic methodology that was used so successfully with stocks would work just as well with mutual funds, and possibly better. The...

The broad market remains in fine health, with the major indexes trending higher and sentiment measures still bullish. Thus I continue to recommend that you be heavily invested in a diversified portfolio of stocks that fit your investment needs.

Today’s recommendation is a well-known name on the consumer side, the biggest airline on the west coast. And, interestingly enough, it will be replacing our current airline stock, which is now being sold for a decent profit after less than four months.

Beyond that, there’s only one change to the portfolio today. Last week’s recommendation, which was bought at an unfortunately high point, will now be downgraded to Hold. Details in the issue.

Picking the single best growth stock of the year can be a futile exercise. But my most recent recommendation checks a lot of my personal investing boxes.

It’s been another productive year for the market, with the S&P 500 up more than 17% with a few trading days to spare. Growth stocks continue to carry the day despite recent weakness, advancing more than 22% this year. Value stocks have held their own, up more than 13% and picking up the slack of late as momentum in the growth space has waned. But ultimately, it was yet another year of growth outpacing value.

Despite the recent dicey market, there are two great opportunities created by a weird interest rate move that is likely to correct itself in the months ahead.

The yield curve, defined as the difference between short- and long-term interest rates, has flattened as the benchmark 10-year Treasury rate has fallen. The rate has fallen from 1.75% in February to the current 1.31%, despite the stronger economy and persistent inflation.



I believe rates have moved far too low. Interest rates are still well below what has been defined as normal for the last decade. The 10-year rate is still well below the pre-pandemic level. Plus, the benchmark rate averaged between 2% and 3% during both the Obama and Trump Administrations.



Interest rates have fallen too far and are likely to trend higher in the months ahead. Two portfolio stocks benefit from the difference between short and long rates and have been held back by the falling rates. These stocks are likely to move higher as the situation reverses

As we head into December, there are several major factors at work on the market, and most of them are negative: interest rates are rising, global trade is at risk of slowing, and the major trend of the market is now down. But not all factors are bleak. On the positive side, the deep correction has made stocks cheaper, and as stocks have fallen, investors have become more fearful, which eventually becomes a good thing.

So while caution is clearly warranted, it’s important not to stick your head in the sand.

We had written lately that the market had been extremely quiet in recent weeks ... possibly a bit too quiet, as the market has a way of hitting a pothole after a period of calm. Sure enough, we saw some growth stocks ease early last week, and then the Middle East attacks and counterattacks caused selling on Friday. Even so, it’s been a normal wobble so far, and while things are likely to be tricky and news-driven in the near term based on the happenings in the Middle East, just about all of the intermediate-term evidence remains bullish. We’ll leave our Market Monitor at a level 7 today.

This week’s list is surprisingly growth-y, with many names from different sectors at or threatening new high ground. Our Top Pick looks to be near a decent entry after a humongous rally from early April to late May.

AVPT, AORT and DCBO Still Buys After Reporting

Education: Put-Write

You should have an advisory that will get you out of the market and into cash when the tides turn against you.

A company declaring a new dividend can be a major catalyst for the share price as it makes the shares attractive to an entirely new segment of investors, and this micro-cap stock just announced theirs.

The market is beginning to more fully anticipate a post-Covid environment and economy. As such, investors are looking to slower/normalized/sustainable growth following the bulge from the pandemic stimulus programs and pent-up demand, higher interest rates, and a relenting of supply chain issues.

As I mentioned in this week’s update, CEG has some technical support around the $225 per share range. The stock had been flying high but has been under considerable pressure recently. CEG (currently around $227 per share) is down over 35% from the high made in late January.

Cannabis sector negativity and weakness persists, so the group continues to be a buy.


Now it is time to continue to average in at current prices, ahead of the next catalyst-induced move up.

Carpenter Technology (CRS) & Microsoft (MSFT)

Sell Warrior Met Coal (HCC). Buy Second Half of Life360 (LIF)