Movers & Shakers

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.

The market re-tested its August closing lows this week (~1,870 on the S&P 500 and ~4,500 on the Nasdaq), and so far, there have been a couple of positives. Not only have the indexes held those lows for the most part (though small-cap indexes look worse than others), but we’ve seen a couple of positive divergences in the broad market (fewer stocks hitting new lows, fewer stocks below their 200-day moving averages, etc.).

That’s a good first step … but, obviously, it’s only a first step. What we need to see from here is (a) a push higher in the major indexes that creates a new intermediate-term buy signal, and (b) some bullish action among potential leading stocks.  

For the indexes, it’s a moving target, but in general we’re looking for the S&P 500 to rise above 1,970 or so in the days ahead, with the Nasdaq leaping above 4,800 or so. Such a move would probably be enough to turn the intermediate-term trend back up.

Obviously, such a rally might not happen, but we’ll just take it as it comes—the key now is to be prepared. If the trend turns up, we’ll take a somewhat 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.

Does this mean you should change your tactics if you own some broken stocks?  Should you hold on because there’s a chance the market could get going? No.  Again, we’re just dealing with possibilities—if you have lots of cash, it’s good to be prepared for the next upturn. However, if you’re still holding a lot of trash, we do think rallies represent selling opportunities until proven otherwise.

Michael Cintolo can be found on Google Plus.

Headline News

Stock Picks


Shopify (SHOP), which came public in May of last year, is a new leader.


Roy Ward uses the PEG ratio to determine if the stock is undervalued or overvalued.

For AMZN to be undervalued, the stock would need to fall to 393. 50.

Cabot Wealth Advisory

The Emerging Market Stock You Ought to Own

By Paul Goodwin on September 27, 2016

The company I’m talking about (the one that you probably don’t own) is the largest Chinese instant messaging company. It is a giant in its own right, with a market cap of $262 billion and annual sales of over $19 billion. The company grew revenue by 28% in 2015 and routinely boasts after-tax profit margins over 30%.Read More >

Tesla Model 3 vs. Chevy Bolt: Which Affordable Electric Car Is Better?

By Timothy Lutts on September 26, 2016

The Tesla Model 3 and Chevy Bolt are the first two affordable electric cars with a driving range of more than 200 miles. Let’s see how they stack up - and what they could mean to Tesla Motors (TSLA) and General Motors (GM) stock. Read More >

Does Alibaba (BABA) Stock Measure Up to Amazon (AMZN)?

By Paul Goodwin on September 23, 2016

Alibaba (BABA) is the Amazon (AMZN) of China. But does BABA stock measure up to AMZN stock? Let’s break it down!Read More >