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Sell a Half Position in UiPath (PATH)

The Russell 2000 has been crushing the rest of the market since it bottomed back in April. Here’s why this small-cap index is leading the way higher.

It’s been another hectic but positive week in the market, with the major indexes pushing back to their prior highs or, in some cases, out to new high ground after this morning’s inflation report, albeit with another wobble in the middle of the week. Still, when looking at the evidence, the top-down measures remain positive.

ASML’s earnings on October 15 may confirm surging AI chip demand—its bookings and outlook could decide whether the semiconductor rally has more room to run.

WHAT TO DO NOW: The market’s trends remain in good shape, though the broad market is still a bit iffy and growth stocks are up and down—though, encouragingly, we have seen some solid snapback action this week, with a few names we own and are watching re-testing resistance. All told, the plan remains the same: Give our names some rope and look to add exposure in names as they get going, all while being selective. Tonight, we’re placing AppLovin (APP) on Hold due to its news-driven air pocket, but we’re adding another 3% stake in Arista (ANET), which is perking up. Our cash position will be around 29%.

What shutdown? What tariffs? The market couldn’t care less. It just keeps moving higher.

After making a series of new highs throughout the summer, the S&P had a great September. October looks good so far, too. Stocks are being driven higher by technology and the artificial intelligence trade. The technology sector is up 9% over the past month.

One of the most attractive industries right now for turnaround-focused investors is chemicals, with the share prices for many major producers in this group hovering at or near multi-year lows.

The reasons for this collective underperformance vary, and while not all chemical companies are in a classic turnaround situation, many of them are under serious margin pressures and are implementing strategic plans aimed at improving their company’s fortunes and reversing the stock price declines.

It’s a high-risk, high-reward trade, but this stock might have what it takes to turn into a 20x rocket.

Rescheduling remains the “white whale” for cannabis investors, but while we wait, here are five reasons to own cannabis stocks right now.

Sell a Quarter of Centuri Holdings (CTRI)

Sell Life360 (LIF)

After a holiday-shortened but very productive week for the market, here’s what’s happening with all our positions.

Selling in November, especially in leading growth stocks, hit the Magnificent 7 hard, but the best of the bunch—the Dynamic Duo—are hitting all-time highs.

Today we’re jumping into an emerging precision oncology company that is on the cusp of a major Phase 3 data release for a potential best-in-class treatment for rare eye cancers.

The company also has a stacked pipeline of other potential assets and has teamed up with some of the best in the business as it looks to transition from a clinical-stage company to a full-on commercial success.

Suffice it to say, the risks are somewhat higher with a stock like this, given that FDA approval, or denial, will have a major short-term impact on share price performance.

All the details are inside the December Issue of Cabot Small-Cap Confidential.

It’s been a relatively quiet post-holiday week, albeit on the positive side—coming into today, most major indexes are in the black by less than 1%, continuing the generally good vibes seen from the pre-Thanksgiving low area.

Shares of Argan (AGX) are trading down as of midday after the company missed revenue expectations in Q3 FY26 but beat on EPS. The pullback likely signals that AGX stock will be rangebound for a while – possibly in the 300 - 400 range – not that the run in shares is completely over.

The market is close to the high, and all eyes are on the Fed.

The market has priced in a 0.25% fed funds rate cut already. It could get ugly if the Fed doesn’t cut the rate on Wednesday. But that is unlikely. The rally in interest rate-sensitive stocks took place over the past few weeks. Now, those stocks are pulling back as investors fret over what the Chairman might say about future rate cuts in the minutes following the rate cut announcement.