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mike-cintolo

Mike Cintolo

Chief Investment Strategist and Chief Analyst, Cabot Growth Investor and Cabot Top Ten Trader

A growth stock and market timing expert, Michael Cintolo is Chief Investment Strategist of Cabot Wealth Network and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides, which has helped Cabot place among the top handful of market-timing newsletters numerous times.

From this author
Trying to pick a stock ahead of earnings is a coin toss. Targeting stocks that have had earnings gaps is a better way to play it.
After weeks of churning and choppy action, last week finally brought some “real” negative headlines that kicked the fear level up a few notches. As always, what’s more important to us is the market’s reaction to the news, and at this point, the intermediate-term advance is on the fence, with most indexes testing their 50-day lines and with more and more leaders doing the same. Big picture, it’s hardly a disaster, but we continue to be a little cautious, being selective on the buy side and holding some cash. We’ll pull down our Market Monitor to a level 6.

This week’s list has something for everyone, with growth, crypto, commodities and all types of potential setups. Our Top Pick is a smaller outfit with a great story—and it’s one of the few stocks that’s shown big-volume buying in recent days.
WHAT TO DO NOW: Continue to play things a bit carefully as the market’s position deteriorates. Our Two-Second Indicator and Cabot Tides are weakening, and leading stocks, which had been churning for weeks, are continuing to give up ground. It’s possible this morphs into some sort of news-driven shakeout (especially given the hourly Middle East headlines), but we’re simply taking it as it comes. We already have 28% cash in the Model Portfolio, but we’re going to pare back further, cutting our loss in our half position in Celsius (CELH) and selling one-third of our position in Pulte (PHM). Our cash position will now be around 36%.
In this week’s video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.
It’s been an interesting week for the market, with the biggest piece of headline news being Wednesday’s worse-than-expected inflation report, which roiled Treasuries (yields up 12 to 18 basis points on the week). Beyond inflation, there have been rumblings of late (including this morning) that Iran is set to attack Israel in some way or another, which is causing some angst this morning.


Despite those headwinds and uncertainties, the action of stocks hasn’t been awful—most indexes are down on the week (led by the broad market), but the losses haven’t been huge, with the Nasdaq actually up a smidge for the week after today’s open.
Bull Market stocks are those that benefit from, and outperform during, a bull market. Here are three I like in what looks like the first leg of a bigger move.
When it comes to the market and especially leading, Top Ten-type stocks, we’re increasingly seeing a game of ping pong occur—one day, the market and most stocks are up, but a day or two later will see selling, with many names that were perking up smacked right back down. We learned long ago not to anticipate things, so we continue to lean bullish but are also being selective. We’ll move our Market Monitor back to a level 7, but the real key is to remain flexible and take things on a stock-by-stock basis.

Meanwhile, our screens continue to find strong situations, including some decent setups should the market get moving. Our Top Pick this week is a name from the chip sector that erupted after earnings in February, but has spent two months calming down and is now standing just above support. A resumption of the rally from here would be tempting.
Moving averages can provide excellent buy and sell signals when used properly, here are a few guidelines to help you improve your trading.
In this week’s video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.
It’s been a poor week for the market, with the big-cap indexes down in the 2% range coming into today, and broader indexes like small and mid-caps are off more, with growth stocks also lagging.
Most of the evidence remains bullish, so we continue to hold our winners and selectively put money to work — but the fact is that most growth stocks have been chopping sideways overall for a month or two, so we’re OK holding some cash and waiting patiently for the market and leaders to show their near-term hand. Tonight, we’re booking a little more partial profits in one of our winners, but are standing pat otherwise and will follow the lead of the market—and of leaders—going ahead.
It seemed like the post-Fed action from two weeks ago may have paved the way for another leg up in the leadership, but while that’s not off the table, we’re continuing to see a lot of crosscurrents out there as money sloshes around. What does it mean? Not much yet, as the major evidence remains positive, but it’s best to continue to raise and honor your stops, while for new buying, make sure you’re focusing on names that are generally earlier in their moves. We’ll leave our Market Monitor at a level 8, but more than ever, it really depends where you look.

This week’s list has many names that are either just coming into favor or have tightened up nicely after prior runs. For our Top Pick, we’ll go back to the commodity theme, with a stock that’s toying with new highs despite the fact that natural gas is still at very low levels. We’re OK starting small here and adding if the buying continues.
These growth investing rules have been carefully selected as the most important guidelines a growth investor can use.
It’s been a relatively quiet holiday-shortened week from the big-cap indexes, with all of them about unchanged on the week. That said, there have been two main themes in recent days.


The first is rotation—small-cap, mid-cap and equal-weight indexes are up in the 1% to 2.5% range on the week, and not only that, we’ve seen more and more old world/value-type names perk up, with more than a few bounding to new highs. (The Russell 2000 and S&P 600 SmallCap are both testing recent highs as well.)
WHAT TO DO NOW: Remain bullish, but continue taking things on a stock-by-stock basis. We’re seeing another round of sharp selling in many leading growth stocks today, though few (if any) have cracked meaningful support. To us, it’s another shot across the bow, not prompting any major moves but putting us on alert with certain names. In the Model Portfolio, we’re making one small move—selling 20% of our stake in CrowdStrike (CRWD)— while doing a quick flip on Celsius (CELH), placing it on Hold after last week’s half-position buy after today’s drop on news. Our cash position will now be 25%, and we’re keeping our eyes on a few names should the selling continue.
There was definitely some churning in the leading areas of the market from early February into last week’s Fed meeting, but there wasn’t much abnormal action, and the past few days have seen the buyers back at it, helping many leading stocks of all stripes pop. Now, we don’t consider the action as a brand-new buy signal, but the major evidence of the market (trends are up for most indexes and sectors) never wavered, so we’re holding most of our winners and looking to increase exposure in names that are enjoying big-volume accumulation. We’ll nudge our Market Monitor up at level 8.

This week’s list is a bit of a hodgepodge, with different types of names from varying sectors. For our Top Pick, we’ll go with a name from a strong sector that has seen its business turn up in a major way while the stock’s recent action looks like a major change in investor perception.
We’ve been using the following market timing indicators for decades, and they’ve served us quite well. Here’s how they work.
In this week’s video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.
It’s been an encouraging week in the market—both the S&P 500 and Nasdaq are up in the 2% range, while broader indexes and growth-heavy measures are up more.


For much of 2022 and 2023, buying pressures weren’t able to persist—yes, there were rallies, but they usually went just three to five weeks before the bulls pulled in their horns, leading to renewed downside.
Most growth leaders and even the Nasdaq itself has been churning since early February, with a lot of ups and downs but not much price progress—but this week has been more encouraging, as the selling pressures have been unable to persist and the major uptrend may be reasserting itself (basically the opposite situation that was seen repeatedly in 2022-2023). That doesn’t mean it’ll be smooth sailing from here, so we’re still being discerning on the buy side, but we’re holding our winners and remaining in an overall optimistic stance.

In the Model Portfolio, we cut bait on one half position earlier this week that was heading in the wrong direction, but we’re holding our strong performers and tonight are putting a chunk of money to work.
WHAT TO DO NOW: The market and especially leading stocks are still very choppy, with news-driven moves becoming the norm of late, and today we’re seeing another wave of selling in the names. Big picture, we’re still optimistic, but we’re taking things on a stock-by-stock basis at this point. Today we’re going to sell Shift4 (FOUR), which was hit hard yesterday after saying it received no worthwhile buyout bids and, without any bounce, we’re going to cut bait here, leaving us with 32% in cash. Details below.
The intermediate-term trend of most major indexes and most leading stocks is still pointed up, but there’s no doubt we’re seeing much more choppy action, with most leading stocks basically marking time since early February. The good news is that, while we are seeing some sluggishness and a larger number of potholes, there are some areas of the market that are perking up—retail names started to pop three or four weeks ago, and more recently we’ve seen some commodity areas begin to flex their muscles. As we said last Friday, then, it’s not so much that there are major red flags out there, but more that the very bright green light has dimmed some as money starts to slosh around and some uncertainties (like interest rates and the Fed) pop up. We’ll again leave our Market Monitor at a level 7.

This week’s list is heavy in commodities and newer retail names, and our Top Pick looks like it’s leading what could be a group move.
In this week’s video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.
It’s been another choppy week with not much net movement in the indexes. As of this morning, the S&P 500, Nasdaq and NYSE Composite are all flat on the week—though in the bond market, there was a big move, with five- and 10-year Treasury yields up 0.2% to 0.25%.
Bull market leaders are still holding up, but there are early signs of rotation benefiting fresher names in a handful of sectors. Here are four we like.
WHAT TO DO NOW: Remain bullish, but keep some dry powder on the sideline. Most of the evidence remains positive, but the choppy, churning action among some leading stocks (as well as the Nasdaq itself) is still in place. To be fair, many fresher names are acting well, but we’re content to hold some cash and our strong performers and see how things play out. After putting some money to work last week, we’ll stand pat tonight with a cash position of around 27%.
Winning stocks are a great problem to have, and there are many ways to handle them, here are a few tips to help you manage your profits.
Starting a month ago, we began to see some leaders chop around, then we saw more short-term froth appear followed by Nvidia’s monstrous reversal last Friday. We’re not making any grand declarations here, but overall, most of the “extended” leaders are being tested, with more than a few wobbling and zeroing in on intermediate-term support and a few already cracking. Now, with that said, most of the other evidence remains fine, whether it’s for the overall market or for “fresher” leadership names, which continue to act well. We’re leaving our Market Monitor at a level 7, but how things play out over the next few sessions will be key.

This week’s list mostly lives outside the tech arena, with many names that have recently taken off and some that are pulling into areas of support. Our Top Pick is blasted off in late January, enjoyed a big run and is now shaking out normally.
In this week’s video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.