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Markets coughed up a hairball at the end of last week and weren’t all that happy today. Defensive stocks had a better time of it, but many growth issues came under heavy pressure. A few high-profile issues (like Google GOOG) got taken to the cleaners after poorly received earnings reports. It’s too early to conclude that markets are in for a big correction, but the action is negative enough to warrant taking a slightly more defensive posture. You should tighten up the leash on your stocks, maybe be a little quicker to take partial profits or cut losers off if their charts deteriorate. Don’t go in for wholesale selling, but work to protect your portfolio.

This week has an interesting list of metals, large-caps and retail, but the Editor’s Choice is Citigroup (C), a global banking giant that’s making a slow comeback from a massive correction when the housing bubble burst. It’s a good value for a high-quality stock that’s appealing to institutional investors.

Stock Name	Price	Buy Range	Loss Limit
Silver Wheaton (SLW)	0.00	37-39	-
Weyerhaeuser (WY)	0.00	27-29	-
Chico’s FAS (CHS)	0.00	16-18	-
Citigroup Inc. (C)	0.00	35-37	-
Coeur Mining (CDE)	0.00	27-29	-
Domino’s Pizza (DPZ)	339.47	40-42	-
LyondellBasell Industries NV (LYB)	0.00	51-54	-
Ocwen Financial (OCN)	0.00	34-38	-
Oshkosh (OSK)	95.04	28-31	-
Polaris Industries (PII)	0.00	84-88	-

Today’s selection is one of the big, fast-growing Chinese companies (you might call it the Google of China), which has just pulled back to offer us a lower-risk entry point.

During the past couple of weeks the market has shown some improvement—first, the big shakeout in the indexes on June 1 (following a disappointing jobs report) was quickly reversed, then the market and potential leaders consolidated amidst a rash of worrisome news, and now we’re seeing real buying appear—some stocks have already pushed to new high ground! That said, now’s a good time to keep your feet on the ground; by our measures the market remains in an intermediate-term downtrend, though that could change if the bulls continue making progress this week. Thus, while some small new buying here is fine, you shouldn’t put on your bullish hat until we see confirmation that the trend has turned up.

Whether you buy a little here or not, you should be sure to have your watch list in tip-top shape should an uptrend emerge. This week’s list has many great candidates, and our favorite of the week is Cerner (CERN), a leader in the IT healthcare segment, which features a couple of great-acting stocks. CERN lifted to new highs today on big volume.

Stock Name	Price	Buy Range	Loss Limit
Akorn (AKRX)	0.00	13.5-14.5	-
American Eagle (AEO)	0.00	18-20	-
AUXL (AUXL)	0.00	21-23	-
Biogen (BIIB)	0.00	136-140	-
Cerner Corporation (CERN)	0.00	83-86	-
Edwards Lifesciences (EW)	228.06	93-97	-
Equinix, Inc. (EQIX)	547.73	170-175	-
Skyworks Solutions (SWKS)	0.00	26-27.5	-
TripAdvisor (TRIP)	55.14	42.5-45	-
VeriSign (VRSN)	190.71	40-42	-

Many major indexes have hit new highs in recent days, and all Cabot’s market timing indicators are currently positive. Conclusion: it’s a bull market and you need to be heavily invested.

But, as always, you need to manage your portfolio. In our own portfolio, eight of our stocks have hit new highs in the past week, which is great. But two of the others are being downgraded to hold because their prospects are less secure.

As for today’s new recommendation, it’s a young, fast-growing company in a high-risk/high-potential market sector. It’s certainly not for everyone, but for aggressive investors, it could be fun.

The market rebound over the past few weeks has been very impressive; it’s now turned our intermediate-term timing indicator back to positive. But buying after such a spike is risky, so today’s recommendation is a beaten-down stock that has nowhere to go but up.

The market weakness that I mentioned last week has vanished, and with it my cautious stance. Thus, this week’s stock is what we call a zinger—a stock that has been hot, and will likely remain hot for a substantially longer period of time as investors learn about its great growth story.

The market remains quite weak, and thus ripe for a major rally at any time. But until we see real strength, continued caution is advised.
And today’s recommendation fits the bill, as it has a solid dividend and the prospect of real growth as the global energy industry adjusts to a world without Russian oil.


As for the portfolio, we’re selling one laggard, which is suffering as consumers cut back on discretionary spending.

“Resilient” is not a word that would have described stocks in 2022, but through the first quarter of 2023, that’s precisely what they’ve been in the face of a bank meltdown, more interest rate hikes and still-high inflation. It bodes well for the back half of the year when perhaps some – maybe all? – of those worries subside. In the meantime, we have to say goodbye to a couple underperforming stocks today, while adding a growth play that lies outside U.S. borders. It’s a Mexican consumer products stock that takes advantage of Mexico’s cheap manufacturing costs – and the stock is up 22% year to date!

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Dollar Tree (DLTR), GE Aerospace (GE), Goodyear Tire & Rubber (GT), Intel (INTC), Paramount Global (PARA), SLB Ltd. (SLB) and UiPath (PATH).

Agnico Eagle (AEM) is poised to benefit from a major change in the balance of global reserve assets.

The U.S.-China rivalry continues to simmer, and as China makes its priorities crystal clear, one winner could emerge: U.S. tech stocks.

There are a lot of ways to invest money. Some of them are pretty good. And some of them are probably not what we would advise.

They’re at Sotheby’s Auction House and selling for hundreds of thousands of dollars, but what are NFTs and why should you care?

Of all the Cabot techniques for growth investing, the one I have the hardest time explaining is our approach to market timing.

Among many things that your lack of time is keeping you from doing is taking charge of your investment portfolio.

In today’s Dividend Edition, I’d like to share a recent article from Richard J. Moroney’s Dow Theory Forecasts. In it, Moroney explains why dividend-paying stocks are now probably a better investment, even for conservative investors, than bond funds. “For many investors, holding bonds makes sense. But with high-quality bonds yielding so...

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