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, and the same goes for all of the liquid leading stocks. Thus, by our measures, the market’s trends remain up and the odds favor higher prices going forward.

That said, the broad market remains extremely split and volatile. Even during the rally this week, there have been dozens of stocks hitting new lows on the NYSE every day. Plus, leadership ranks remain thin, and even among stocks that are acting well, many are running into selling pressure as soon as they punch out to new highs.

This so-so action among individual stocks keeps us relatively neutral. We’re all for holding your top performers (though booking some partial profits on the way up is prudent) and looking to buy the best stocks at attractive entry points, focusing on the best stories and set-ups—but it’s also smart to hold some cash.

The good news is that the action of the past two weeks may have put the finishing touches on some basing patterns among potential leaders. If we see some of these stocks emerge to new highs (or off support), it would give the market more leadership and provide us with more stocks to really sink our teeth into. That’s what we’ll be watching for during the next week or two.

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.

Cabot Wealth Advisory

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >

Buy This Small-Cap Tech Stock as the Nasdaq Thrives

By Tyler Laundon on October 20, 2016

Technology stocks are thriving, as the Nasdaq has been outpacing the S&P 500 and the Dow for months. And one small-cap tech stock in particular is outperforming the industry’s big boys. Read More >

Is Allergan (AGN) Still an Undervalued Stock?

By Crista Huff on October 18, 2016

Five months ago, Allergan (AGN) was an undervalued stock with tons of growth potential. It's up 21% since then, but still has plenty of upside. Here's why.Read More >