Analysts Center | Michael Cintolo

 
Below are excerpts from Mike Cintolo's advisories, Cabot Top Ten Trader and Cabot Growth Investor.

Cabot Top Ten Trader features the best trades to make every week. Designed for experienced investors who want even more great growth stock ideas, this advisory recommends the best 10 stocks each month for short-term investment by aggressive growth investors.

Cabot Growth Investor has been picking the best growth stocks since 1970. Cabot’s flagship advisory combines expert stock selection and award-winning market timing. It’s the most complete and most helpful, growth-oriented investing advisory available anywhere.

Michael Cintolo can be found on Google Plus.

Movers & Shakers

While this retest (if it holds) would be a good sign, it’s unlikely that a three-week bottoming process would be enough given all the damage.»

Remain Defensive

Looking at the big picture, all three of our market timing indicators remain bearish, so a defensive stance is still advised.»

Follow the System

Following the system, to us, means staying in gear with the market's major trends. As has been the case for weeks, the trends are down, so we continue to advise a defensive stance.»

Movers & Shakers

90% of our focus remains on the intermediate- to longer-term market and individual stocks. And on that front, the trends remain clearly down; thus, our Market Monitor remains in bearish territory and we continue to advise a defensive stance.»

Be Dumber

When it comes to market timing, it’s best to be, well, dumb. Today, that means recognizing that the market’s intermediate- and longer-term trends remain clearly down, and the vast majority of stocks remain in poor shape.»

Still Bouncing

This bounce probably has further to run, especially as earnings season has helped a few stocks show excellent strength, but the onus remains on the bulls to prove the bounce can morph into a sustained rally.»

Movers and Shakers

Every day that goes by with the indexes still just a couple of percent above the January 20 low, we become more suspicious—usually after such a deep selloff, you get a few days of strong upside, a clear sign the selling pressures were exhausted short-term.»

Remain Defensive

We continue to advise a defensive stance, with lots of cash and little new buying as we wait for a sustained, intermediate-term (and, ideally, longer-term) advance to kick into gear.»

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.»

Movers & Shakers

After two and a half weeks of very intense selling, it appears the market has finally found a short-term low to work from—and we could have finally entered a bounce phase.»

Avoiding the Improbable

The market tends to be a bad teacher; it acts a certain way for many months, lulls investors into a sense of security, and then quickly changes its tune, leaving most investors dancing to the prior rhythm.»

Practice Patience

After another week of major selling in the market, there’s not much left to say except the obvious—the sellers remain in control of nearly every stock and sector.»

Movers & Shakers

This morning looks particularly ugly, with another steep drop in oil prices led to an opening drop of around 400 points in the Dow.»

Separating the Forest form the Trees

Looking at the market right now, it’s important to separate the forest (the bigger picture) from the trees (the nearer-term picture). »

Simply Put, the Trend is Down

The trends are down, so you should remain in a defensive posture, meaning lots of cash, little if any new buying, with the focus on building a watch list of future winners. »

Movers and Shakers

It’s been a very bearish start to the year, and the facts are pretty straightforward at this point: The major trends are currently down, so a defensive stance is appropriate.»

Stepping Aside

Following tedious-at-best action during the last month or two of 2015, sellers have come out swinging this year, driving the major indexes toward multi-month lows.»

We're Encouraged

As it has so many times this year, the market has been rebounding nicely following a multi-week correction, the most recent one from the start of November through the first week of December (nearly 6% from high to low for the S&P 500 and Nasdaq). It's encouraging action, but so far, it hasn't been enough to flip our Cabot Tides back to positive--three of the five indexes we track are still below their 50-day lines.»

Movers & Shakers

The rally of the past few days hasn’t changed our overall view—the intermediate-term trend is down, and few stocks are making much progress on the upside.»

2015: A Mild Bear Market Year

Every December, we like to take a step back and look at the year as a whole, including the market and our actions (both the good and the bad).»

Remain Cautious

At the very least, the intermediate-term trend is sideways-to-down, and the broad market is in poor health, with hundreds of stocks hitting new lows on a daily basis.»

Movers & Shakers

Until the major indexes break out to new highs (around 2,130 on the S&P 500 and near 5,200 on the Nasdaq), it’s going to be hard for most stocks to enjoy sustained uptrends. »

Buyers React Positively to Fed Move

Today was great, but our Cabot Tides and the Two-Second Indicator remain negative while our Cabot Trend Lines remain positive.»

The Sellers are Back in Control

We never got too bullish in recent weeks because of all the warts on the rally, and now it’s time to be cautious, selling your losers and laggards and holding plenty of cash.»

Movers & Shakers

The evidence has deteriorated, so taking some defensive measures makes sense. Most of all, have a plan in case this month’s weakness continues.»

Leadership Still Holding

In the market, it’s often the unusual that is worth paying attention to. And in our book, it’s highly unusual that almost all of the leading growth stocks have not cracked.»

Tenuous, but Still Positive

We’re sticking with a relatively neutral stance, meaning we’re holding our top performers, but also holding some cash and being very selective on the buy side.»

Top Ten Movers & Shakers

By our measures, the market’s intermediate- and longer-term trends remain up, and most of the liquid growth leaders of this advance continue to act well enough.»

Another Point in the Bulls’ Favor

The leaders have performed well; many had short, sharp shakeouts three weeks ago, but none broke down and most have powered back to (or close to) new highs. »

A Balancing Act

What’s encouraging is that our screens are finding more and more good growth stories, which is what we see this week.»

Warts and All, the Trend Remains Up

As tricky as the environment is, there are opportunities out there if you’re invested in the right stocks (especially the liquid leaders) and get in at advantageous buy points.»

Movers and Shakers

This week brought about as good a reaction to last week’s sharp selloff as you could have asked for. The major indexes generally held their 50-day lines and bounced nicely.»

Watching Our Indicators Closely

The market environment remains split, selective and challenging, with some stocks doing well and others looking horrid.»

Back in the Soup

Given the strong October run-up, we weren’t surprised to see the market retreat last week, but the severity of the dip in indexes and individual stocks was a yellow flag.»

Movers and Shakers

The force of the selling during the past couple of days is definitely a yellow flag, while the action among the leading stocks and indexes has actually been reasonable.»

Hit or Miss

We’re beginning to see money flow out of defensive stocks that have thrived over the past few years. If that continues, we think there’s a good chance growth stocks could benefit in a big way. »

Movers & Shakers

We continue to see more and more positive evidence. We received an intermediate-term buy signal back in early-ish October, and last week, even our longer-term trend-following measures turned bullish.»

Trends Remain Up

We believe this dip, while probably having further to run, is buyable, but stock selection remains key, as we’re still seeing many stocks fall apart even as others remain in favor. »

Improvement Seen in Growth Stocks

As earnings season has progressed, we’ve also seen improvement among growth stocks—it’s not a wild bull market, but more leadership has appeared, especially among the big, liquid leaders we like.»

More Improvement, but Lots of Bumps in the Road

We’re a bit more constructive than we have been, so we’ll bump the Market Monitor up a notch, but it remains vital to be selective—buy what’s working, keep losses small and avoid or sell anything that breaks down.»

Movers & Shakers

We’re likely to bump our Market Monitor up a notch next week for a couple of reasons. First, we’re seeing some “staying power” among high-relative strength, Top Ten-type stocks.»

The Second Mouse

Leading stocks often take a while to get going, so investors who race to jump in first often buy the wrong stocks at the wrong time.»

Market is Better But Not Great

We’re still cautiously optimistic but we’re also sticking with our relatively neutral stance»

Movers & Shakers

The pieces are in place for a good run in Top Ten (i.e., high relative strength) stocks … but we’re waiting for further confirmation before from those stocks before becoming heavily invested.»

Still Good-Looking Setups

There remain lots of good-looking set-ups, so our thought is that the rubber is likely to meet the road during the next three weeks as many resilient stocks report earnings.»

Earnings Season Dead Ahead

The rubber will likely meet the road during the next three weeks as earnings season revs up—a bunch of powerful breakouts would dramatically raise the odds that the market is beginning a sustained rally.»

Movers & Shakers

Our main thought: Should we see a bunch of these stocks that are set-up in sound bases lift off on earnings, it will be your sign to become more aggressive.»

Lots of Set-Ups—and Crosscurrents

With earnings season getting underway, there’s the potential for leadership to quickly form if things go right. But potential is the key word. »

Intermediate-Term Trend Up; Looking for Leadership

There are still a few flies in the ointment; the longer-term trend remains down and most of the big movers have been the worst performers of the past few months. »

Movers & Shakers

From a top-down perspective, the market has performed impressively this week. Under the market’s hood, however, the situation is anything but clear.»

Bottoming in Process

Last week, most major indexes successfully re-tested their August lows and, importantly, we saw a positive divergence from our Two-Second Indicator.»

Looking for Confirmation

We’re looking to see if the intermediate-term trend can turn up; by our measures, it could happen within a day or two if the market holds its recent gains. »

Movers & Shakers

If the trend turns up, we’ll take a more constructive stance (though we’ll likely advise going slow, as the longer-term trend remains an issue), and if it doesn’t turn up, we’ll simply remain hunkered down.»

Here’s What to Watch For

We’re focused on any potential bottoming action, especially as the major indexes tested their August mini-crash lows this week. »

Onus Remains on the Bulls

as always, it’s best to just take the evidence as it comes—today, that means holding lots of cash and limiting new buying as we patiently wait for a bottom to form.»

Stock Picks

China Biologic Products

When it gets going again, this stock will have huge potential.

SolarEdge

SolarEdge is highly profitable, and analysts see sales rising 20% in 2016.

Adobe

Adobe has been making waves in the fast-growing digital media and digital marketing industries.

Cabot Wealth Advisory

The Gold Star and the Falling Knife

By Paul Goodwin on February 12, 2016

The title of this piece is “The Gold Star and the Falling Knife.” So I guess I’d better pay that off. The Gold Star is a reference to the energetic rebound in the price of gold that’s been lifting mining stocks for the past couple of weeks. This is mostly a defensive move by investors who are looking some something that will hold value in a chaotic market environment. And after a nearly four-year pullback in gold prices, even those who aren’t fans of precious metals (like me) are getting a little gold gleam in their eyes. Read More >

The Growth Stock Diet

By Paul Goodwin on February 11, 2016

While there isn’t any substitute for the diet and exercise you promised yourself you’d do six weeks ago, there’s a stock diet that will allow you to make huge progress in your equity portfolio. It’s called the SNaC Diet, and it’s the best way to get your portfolio in shape, even if you can’t seem to make progress in the campaign against your love handles. SNaC stands for Story, Numbers and Chart, and it’s the method I use to pick growth stocks for the Cabot Emerging Markets Investor.Read More >

Five Steps of a Market Bottom: Where are We?

By Michael Cintolo on February 09, 2016

In my January 28 Cabot Wealth Advisory, I wrote about the five key characteristics to look for as the market builds a bottom. The market has deteriorated further since then, so I thought you’d benefit from brief updates in my upcoming Wealth Advisories (starting today) so you can see how the process is playing out until the bulls re-take control of the market.Read More >