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Current Market Outlook


After another week of major selling in the market (the S&P 500 is down 8% this month, while the Nasdaq is off 10.3%), there’s not much left to say except the obvious—the sellers remain in control of nearly every stock and sector, and thus we continue to advise a highly defensive stance. Of course, the market is also very oversold, and at some point there will be a snapback rally (likely to last more than just a few days) that will take the indexes and many stocks higher. But until we see some definitive signs of support, it’s best to stay mostly on the sideline and wait patiently for legitimate set-ups to occur.

This week’s list has a variety of resilient names; some are defensive, some have solid growth stories and others are special situations. Our Top Pick is Chuy’s Holdings (CHUY), a small (and thinly traded) cookie-cutter story whose stock has been amazingly resilient this month.

Stock Name	Price	Buy Range	Loss Limit
Ryanair DAC (RYAAY)	0.00	81-84	75-76
MACOM Technology Solutions (MTSI)	0.00	34-36	31.5-32
Intuitive Surgical, Inc. (ISRG)	0.00	535-555	500-505
Alphabet, Inc. (GOOGL)	0.00	695-720	640-645
Flir Systems (FLIR)	0.00	30-31	27.5-28
Five Below (FIVE)	134.58	32-34	29-29.5
DreamWorks (DWA)	0.00	24-25.5	22-23
CubeSmart (CUBE)	0.00	29.5-31	27.5-28
Chuy’s Holdings (CHUY)	0.00	32.5-35	29.5-30
Abiomed (ABMD)	0.00	83-87	77-78

Microsoft is a well-known company, but given recent developments in their AI offerings, MSFT stock looks like a diamond hiding in plain sight.

The World in 2050 by Laurence C. Smith describes four global forces that are impacting the world today: demographic trends, natural resource demand, climate change and globalization.

As consumers shift their shopping to the web, one tech stock in particular is benefiting - and is well positioned for even greater growth.

My first suggestion for readers who want to improve their growth investing performance is to do a quick review of your results from 2014.

In this week’s video, Mike reiterates his overall bullish stance on the market and presents some stocks that could be leaders going forward.

Overall, a bullish market with leading growth stocks racing up. Also, a sector that is ready to turn up and leading stocks that are set up nicely.

In this week’s video, Mike Cintolo talks about his favorite stock setups, and looks in-depth on the market and some sectors to keep an eye on.

In this week’s video, Paul looks at the charts of the FANG stocks and the BAT stocks and a few recent stock favorites.

In this week’s video, Paul Goodwin talks about the market’s bullish move and goes through the leading sectors and gives some examples of strong stocks.

In this week’s video, Paul Goodwin talks about the general good health of the market, with the S&P 500 and Dow leading the way higher.

In this week’s video, Mike talks about his generally bullish stance--the overall market looks good and there are far more stocks in good shape than bad

The indexes plummeted on rising rate worries and disappointing Goldman Sachs (GS) earnings. The benchmark 10-year Treasury rate soared to 1.85 on Tuesday. That’s the highest level since the pandemic began and up from 1.34% as recently as last month.

Last year one of the market’s biggest winners was Crocs (CROX). Most people just call them plastic, but we made a lot of money in the stock, and therein lies an excellent opportunity for a lesson in Romance, Transition and Reality.

Get familiar with charts (there are many free charting programs online) and take five minutes to look at some of the major indexes every day or two. On the chart, you want to plot the index itself (say, the S&P 500), and you also want to plot its 50-day moving average. If most indexes are above their 50-day line, you should be constructive toward stocks. If most are below, you should be defensive. It sounds simple ... and it is.

The first news is the renaming of our advisory, from Cabot Marijuana Investor to Cabot Sector Xpress Cannabis Advisor, which is explained in today’s issue.

While the broad market was falling apart over the past week, several of our cannabis stocks held firm above their December lows, telling us that after an 11-month downtrend, the selling pressures are pretty much spent in that sector.



Today’s issue brings a few tweaks to our portfolio, but no big changes, as we are well positioned for the sector’s next uptrend.



Full details in the issue.

Welcome to the fourth installment about my recent 17-day, 4,218-mile road trip to and through the American Midwest and back—which I’m presenting not chronologically but thematically. Today’s theme is wine—American wine—with a focus on the grapes that originated in America.