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Current Market Outlook


Our job as investors isn’t to forecast where the market will be in two or three months, but to follow the current evidence and stay on the right side of the market’s trends. The intermediate-term trend turned positive last week for the first time in more than two months, so it’s time to take a couple of steps back into the market’s waters by purchasing some strong stocks with big potential. That said, it’s best to go slow, partly because the longer-term trend remains down, and partly because many stocks are still repairing the severe damage they suffered in recent months. Our Market Monitor remains in neutral territory, and we’ll be looking for more bullish action from leading stocks to tell us to shift to a more aggressive stance.

This week’s Top Ten has a bit more of a growth flavor, which we like to see, with many stocks expected to grow earnings nicely. Our Top Pick is Texas Roadhouse (TXRH), a full-service restaurant operation that should see its bottom line accelerate this year. Even better, the stock just exploded out of a multi-month base.

Stock Name	Price	Buy Range	Loss Limit
WellCare Health Plans, Inc. (WCG)	271.83	87-90	82-83
Texas Roadhouse (TXRH)	0.00	40.5-42	36.5-37
Stamps.com (STMP)	0.00	112-117	106-107
Sprouts Farmers Market (SFM)	19.00	26-27.5	23.5-24
Motorola Solutions (MSI)	0.00	71-73	66-67
Mellanox Technologies (MLNX)	92.00	49-51	45-46
Lennox International (LII)	270.56	127-129	120-121
First Solar (FSLR)	83.74	68-70	60-61
Franco-Nevada (FNV)	125.51	57-59	52-53
()	0.00	-	-

Current Market Outlook


Last Wednesday appears as if it will mark a short-term low for stocks—there were many extremes in sentiment (fewest number of bullish investors in 10 years) and breadth (most stocks hitting new 52-week lows since 2008), which, combined with the big turnaround that day (and the big relief rally on Friday), increases the odds that we’re now in bounce mode. This bounce could continue for a while, so if you want to nibble on a couple of strong names (especially those that react well to earnings), that’s fine. But our bigger message remains the same: The market’s intermediate- and longer-term trends are clearly down, so it’s likely any bounce will eventually lead to a retest (or worse) of the recent lows.

The good news is that any bounce will allow us to separate the wheat from the chaff, and that process has already begun. This week’s list has a few intriguing growth stories to consider. Our Top Pick is Ligand Pharmaceuticals (LGND), a small, little-known biotech firm with a very unique business model. Put it near the top of your watch list.

Stock Name	Price	Buy Range	Loss Limit
Take-Two Interactive (TTWO)	123.32	32-34	29.5-30
STORE Capital (STOR)	0.00	22.5-23.5	21-21.5
Seaspan (SSW)	0.00	15.5-16.5	14-14.5
Lululemon Athletica (LULU)	304.69	53-57	47-48
Ligand Pharmaceuticals (LGND)	267.14	99-104	90-91
First Republic Bank (FRC)	0.00	64-66	59-60
Edwards Lifesciences (EW)	228.06	76-79	70-71
Cree, Inc. (CREE)	67.96	26-27.5	24-24.5
CoreSite Realty (COR)	0.00	57-59	53-54
Burlington Stores (BURL)	193.95	49-51	46-47

Current Market Outlook


First, the good news: By last week’s end, the major indexes had extended their bounce, with many recouping about 45% or more of their December 29-January 20 meltdowns. And this bounce probably has further to run, especially as earnings season has helped a few stocks show excellent strength. All of that said, the onus remains on the bulls to prove this bounce can morph into a sustained rally—the intermediate- and longer-term trends are still pointed down for all indexes and the vast majority of stocks, and to this point, most of the “action” has been in defensive and interest rate-sensitive sectors (utilities, REITs, tobacco, etc.). That can always change, and we hope it does, but right now it’s best to remain defensive and allow the market to prove itself on the upside.

This week’s list contains some turnaround situations, but we’re encouraged to see some real growth stocks as well. And the Top Pick this week is the flag-bearer for all growth stocks—Facebook (FB) is well owned, but remains one of the best stories around, and last week’s earnings report revealed accelerating growth.

Stock Name	Price	Buy Range	Loss Limit
TAL Education (XRS)	0.00	45-47	41-42
Under Armour (UA)	0.00	80-83	74-76
T-Mobile US (TMUS)	0.00	38-40	35-36
SolarEdge Technologies Inc. (SEDG)	124.37	27-29	24-24.5
Facebook, Inc. (FB)	0.00	110-115	102-103
Diamondback Energy (FANG)	0.00	70-74	63-64
Dollar Tree (DLTR)	0.00	78-81	72-73
Cirrus Logic Inc. (CRUS)	0.00	33-35	30-30.5
Align Technology (ALGN)	316.20	64-67	61-61.5
Barrick Gold (ABX)	0.00	9.5-10	8-8.5

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

Mike Cintolo, Vice President of Investments and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader will discuss The Best Stocks to Buy in 2021.

This webinar will help you learn how to invest in expansive, high growth enduring markets that Carl Delfeld calls “Blue Ocean” markets.

It will give you specific actionable ideas to tap into growth markets such as:

• e-commerce - learn about international company at the heart of the world’s most lucrative consumer market growing top line revenue six times faster than Alibaba
• electric vehicles (EV) - learn all about the high risk/high reward “Tesla of China” - by far the world’s largest market for EVs
• financial technology (fintech) - learn about why e-commerce and banking is now powered by fintech companies and a stock leading the revolution

As a bonus, Carl discusses both cyber security and rare earths and why two ETFs are the best plays on these key trends.

Smart Marijuana Investing + 2 Stocks to Buy and 1 to Avoid | Timothy Lutts, Chief Analyst of Cabot Marijuana Investor, talked about this explosive new sector that’s guaranteed to mint millionaires for those who buy the right stocks. PLUS Tim gave the names of 2 hot stocks to buy and one to avoid at all costs!

In this Lunch with the Analyst webinar, Cabot Emerging Markets Investor Chief Analyst Paul Goodwin offers an overview of market conditions and a range of stock picks. But the focus of this webinar is on what happens when markets finally stop their corrections and start to build a bottom.

In March’s Lunch with the Analyst, Chief Analyst Mike Cintolo discusses his thoughts on the current market environment—mistakes to avoid, his (optimistic) market timing stance and outlook, and a couple of dozen new and potential leading growth stocks that have either lifted off or are set up to rise in the weeks ahead. He also answers questions on many individual stocks and describes techniques to make the most of this uptrend.

Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader, shared the best stocks to buy in March any why to buy them. You can download the slides here.

Current Market Outlook


From a top-down perspective, our bullish market stance has not changed—the small- and mid-cap indexes have now joined the large-cap S&P 500 in all-time high territory. Obviously, dips and shakeouts are possible, but to this point, we’ve seen a vacuum of selling pressure on the major indexes. Individual stocks have been a bit trickier, partly because of earnings season; more than a few stocks and sectors have been nailed as money hunts for the leaders of the advance. Overall, we remain bullish and advise you to stay heavily invested, but you should also follow the plan—book some partial profits on the way up and if a stock cracks through support or trips your stop, be sure to exit. Conversely, aim to let most of your winning positions run, as this is the kind of market that should produce many big winners over time.

This week’s list includes many recent earnings winners, including a couple of energy stocks. Our Top Pick is Parsley Energy (PE), which we think is probably the top stock in the sector. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
XPO Logistics (XPO)	0.00	34-36	31-32
Wright Medical (WMGI)	0.00	23-24	21-22
Wingstop (WING)	121.52	28.5-30	26.5-27
Trex Company (TREX)	117.56	57-59	51-52
Shopify (SHOP)	585.00	35-37	31-32
Rice Energy (RICE)	0.00	23.5-25	22-22.5
Parsley Energy (PE)	0.00	30-32	27-28
Paycom Software (PAYC)	0.00	49-51	45-46.5
Louisiana-Pacific (LPX)	0.00	19.5-20.5	18-18.5
Align Technology (ALGN)	316.20	88-91	81-82

Current Market Outlook


The market has met with some selling in recent days, spurred on by some poorly received earnings reports and the fact that the major indexes were butting up against resistance areas formed during much of 2015. In the short term, further consolidation is possible for the indexes, and would be logical after a relatively smooth two-plus month run. And some potholes among individual stocks are sure to pop up during earnings season. But the overall bullish story remains intact—the major trends of the indexes remain up, selling pressures on the broad market are light and Top Ten stocks are generally acting well. You should continue to lean bullish, holding your top performers and buying strong stocks on dips, all while holding some cash (possibly 25% to 30%) on the sideline.

This week’s list has a wide mix of stocks and industries, including a bunch of names that haven’t appeared in many months (if ever). Our Top Pick is Nvidia (NVDA), a chipmaker with huge opportunities in new markets and a stock that is consolidating calmly. Keep new positions small ahead of earnings.

Stock Name	Price	Buy Range	Loss Limit
Silver Wheaton (SLW)	0.00	17.5-18.5	15.5-16
Parsley Energy (PE)	0.00	22-23.5	20-20.5
NVIDIA Corporation (NVDA)	242.42	35-36	32.5-33
Medivation (MDVN)	0.00	49-52	45-46
HD Supply Holdings, Inc. (HDS)	0.00	32-34	29.5-30.5
New Oriental Education (EDU)	113.97	37-39.5	34-35
DCP Midstream (DPM)	0.00	29-31	26-27
3D Systems (DDD)	0.00	17-18	15-15.5
Crescent Point Energy (CPG)	0.00	15.5-16.5	14-14.5
Broadcom Limited (AVGO)	266.26	147-151	137-138

Here’s an overview of everything you should know about preferred stocks before adding them to your portfolio.

The past month of market action reminds us of the people we see on the beach who tip-toe into the ocean, wait for their feet to adjust to the cold, then wade in up to their knees ... then their waist ... and finally dunk their heads in. That’s the way buyers have been acting of late, first nibbling on weakness, then buying in bigger lots, and now we’re seeing real leadership emerge. Granted, it’s not the most powerful situation we’ve ever seen, and volume has been generally light as we approach Labor Day. But there’s enough evidence to switch our Market Monitor into the bullish camp; that’s not a reason to go fully invested today, but it is our way of saying that, if you see a good set-up, go after it.

This week’s list continues the trend of enticing charts with solid growth stories. Our favorite of the week is Michael Kors (KORS), a fast-growing retailer that exploded out of a six-month base last week after a great quarterly report. It’s a volatile stock, so use a loose stop, but we think it’s buyable around here or on any weakness.

Stock Name	Price	Buy Range	Loss Limit
ANN (ANN)	0.00	32-33.5	-
ASML Holding (ASML)	350.01	56-58	-
CF Industries (CF)	45.23	210-215	-
Francesca’s Holdings Corporation (FRAN)	0.00	33-35	-
Home Depot (HD)	0.00	55-57	-
LyondellBasell Industries NV (LYB)	0.00	47-49	-
Michael Kors Holdings Limited (KORS)	73.22	49-53	-
Palo Alto Networks (PANW)	236.92	63-66	-
Regeneron Pharmaceuticals (REGN)	512.96	132-137	-
Tesoro (TSO)	0.00	36-38	-

Brendan Coffey, CFTe, chief analyst of Sector Xpress Greentech Advisor, explains why solar has grown from most expensive to cheapest utility-level power in the past decade. He talks about the California rule to have solar on every new house built and expected federal support for it. He also discusses which stocks to play the trend; a solar company, an inverter company and an installer.