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Overbought conditions in a popular and highly liquid ETF are setting the stage to deploy one of my favorite options strategies.

Bear call spreads are conservative, high-probability options trades that - if you string enough together - can deliver massive returns. Here’s how they work.

Cheap defensive stocks are poised to outperform if we see sustained market rotation, and BIPC and AMT are two good-looking choices.

“It’s time, not timing,” versus “Timing is everything.”

First of all, I want to thank everyone who took the time to fill out the survey last weekend. We’ll try to write about many of the investment topics that you requested, so in that vein, today I’m pulling an article out of the archives that answers a question that was asked several times on the survey: How do you invest during a recession? Timothy Lutts wrote an excellent piece about this last January, yes a whole 13 months ago (long before anyone officially declared that we are in a recession), and I dug it out to share with you again here.

Soaring gasoline prices. A weak job market. A higher grocery bill. A still-slumping housing market. All of these add up to one thing: lower consumer confidence. Even Warren Buffett thinks we are in a recession. The Consumer Confidence Index dropped to 57.2 in May, down from 62.8 in April. I don’t know about you, but I certainly didn’t need a report to tell me that consumer confidence is low.

My stock idea today takes its cue from water. Good old H2O. Water is a daily requirement of all living things, and the earth has a limited supply. So as the world’s population increases, proper management of water resources becomes increasingly critical. And where are both the population and the use of water increasing especially fast? China. So my idea today is a very young stock, which came public on June 24 and just earned a spot in Cabot Top Ten Report.

The IPO looked like a triumph for the company and a very bullish sign for the IPO market.

Recently I did a road trip in my Tesla with my wife, from Salem, Massachusetts to Savannah, Georgia and back.

The stock was highlighted in a feature on companies with low price-to-book value.

As a growth investor, I use Story, Numbers and Chart (SNaC) to select the best stocks.

Cannabis stocks are up sharply – 20% or more – since I suggested buying them on weakness in a Cabot Cannabis Investor update sent to you on January 10.

Using my two favorite exchange-traded funds (ETFs) as proxies for the sector, the AdvisorShares Pure US Cannabis (MSOS) has advanced 20%, and AdvisorShares MSOS 2X Daily (MSOX) is up 37%.

An article demonstrates how soccer goalies actually stop more penalty kicks when they stay in the center of the net, but despite these results, the goalies almost always dive right or left. Why? Because not to act is to appear helpless, as if they don’t know what to do. And so it is in the stock market, for many people, both amateurs and experts. They’re always looking to do something ... but sometimes the best course of action is inaction.

Today’s note includes earnings updates on Duluth Holdings (DLTH) and Signet Jewelers (SIG), the podcast and the Catalyst Report.

Last Monday marked a special day for us at Cabot: The 39th anniversary of the first issue of Cabot Market Letter, our flagship newsletter. In honor of this anniversary, I’ve interviewed Cabot Market Letter’s current steward, Michael Cintolo.