Yellow Flag

 

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 investors.

With Greece on the brink of defaulting on some loans and/or exiting the eurozone, the uncertainly of what’s to come caused sellers to drive the indexes and most stocks down sharply today. The straight-down action of the past few days, which came on the heels of some encouraging gains, is a yellow flag, as are the downmoves of many stocks. As we’ve been writing, you should honor your stops (many stocks tripped their stops today) and be holding at least some cash on the sideline.  

That said, while we’re knocking our Market Monitor down a notch today, the bigger picture hasn’t changed—the major indexes are still within their multi-month ranges, and the best stocks are pulling back normally, so we don’t advise selling wholesale.

This week’s list has many strong stocks that have held up well during the recent selloff.  Our Top Pick just exploded out of a base following a big court ruling last week.

Michael Cintolo is Vice President of Investments at Cabot, and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader. A growth stock and market timing expert, Mike is a true student of the market and a technical analysis specialist.

Subscriber comments on Cabot Market Letter
Subscriber comments on Cabot Top Ten Trader


Michael Cintolo can be found on Google Plus.

Stock Picks

Norwegian Cruise Lines

Norwegian Cruise Lines (NCLH) is one of the “big 3” in the cruise industry. There’s a real growth story here thanks to a steady expansion in the firm’s ship count, along with an acquisition last year that gives it exposure to the high end of the market.

Constellation Brands

This maker of wines (Mondavi, Clos du Bois, Ravenswood), beer (Corona, Modelo and TsingTao) and spirits (Svedka, Black Velvet and Paul Masson) gets 89% of its revenues from the U.S. and 11% from Canada, so the strong dollar isn’t hurting.

Cheetah Mobile

My stock pick this week is a Chinese stock that was featured in the Other Stocks of Interest section of Cabot Growth Investor. (It’s also in the portfolio of Cabot China & Emerging Markets Report).

Cabot Wealth Advisory

Investors and the Genuinely Horrible Day

By Paul Goodwin on June 30, 2015

There’s nothing like a genuinely horrible day to get the attention of equity investors. Financial websites and online brokerage accounts must have registered a spike in visitors this morning as the investors who suffered through Monday’s storm tried to figure out which way the market’s winds might blow on Tuesday.Read More >

Why Greece's Default Matters

on June 29, 2015

It’s a critical time for Greece, its countrymen, the nations that hold its debt and its investors. The big question is: Will Greece default on its 1.5 billion euro debt payments that are due tomorrow on the 322 billion euros that it owes to other countries?Read More >

A Straight Answer About Sina

By Paul Goodwin on June 26, 2015

On June 18, I received an email from a subscriber to Cabot China & Emerging Markets Report, the investment advisory for which I’m Chief Analyst. Here’s what I wrote back to my subscriber, slightly edited.Read More >