Back in the Soup

Given the strong October run-up, we weren’t surprised to see the market retreat last week. However, the severity of the dip in both indexes and individual stocks was a yellow flag—many indexes dipped below their 50-day lines, lots of lagging stocks were crushed and even the leaders came under pressure on Friday and today.  

The action isn’t necessarily a death knell for the rally, but it does put it back on the fence; we’re switching our Market Monitor back into the neutral zone. It’s vital to get rid of losers, honor your stops and remember to book some partial profits in your winners. And as for new buying, it’s prudent to keep new positions small until we see the rally perk up again.

This week’s list has a broad mix of stocks and sectors—no unifying theme but a bunch of good charts and stories. Our Top Pick is a unique software company with steady growth and a huge opportunity.

This is an excerpt from Cabot Top Ten Trader, which 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.

Michael Cintolo is Cabot's Vice President of Investments and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader. To read customer reviews of Cabot Top Ten Trader, click here. To read reviews of Cabot Growth Investor, click here.

Michael Cintolo can be found on Google Plus.

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

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