It’s been another flat-to-up week, this time with the big-cap indexes and many growth measures either flat or up a smidge, while some of the broader indexes are up in the 1% to 2% range.
All in all, the evidence has improved during the past two to three weeks—it hasn’t been any type of dramatic blastoff, but, from a top-down perspective, we’re starting to see the buyers flex their muscle a bit, with many of the rangebound indexes and growth measures test the tops of the multi-month ranges, with a few nosing out to new highs. Again, it’s not some historic blastoff, but improvement.
More important to us—really since August soon after the mini-crash—is the action of individual stocks: We’re seeing strong names continue higher and new names emerge, and it’s from a variety of areas, from growth to cyclical to financial, etc.
Now, with that said, we’re not leaving our brain at the door: The election is less than three weeks away and earnings season is ramping up, which could easily prompt some hedging, especially given the fact that some near-term sentiment measures are elevated—we don’t take those as gospel at all, but it does raise risk a bit of some sort of correction, rotation or wobble.
Thus, we’re bullish, but as earnings season ramps and the election approaches, we’re still picking our entries carefully, focusing ideally on fresher names (breakouts in the past two to four weeks) or on initial pullbacks in very strong names (haven’t seen many of these yet). Overall, we’re leaving our Market Monitor at a level 8.
SUGGESTED BUYS
After a choppy few months, many precious metal stocks have ramped in recent days, and Wheaton (WPM) is one of the strongest—it nearly tripped our stop, but has since gone up to kiss new highs near 65. It’s not totally free and clear, but it’s possible the group is coming back into favor; a nibble here and buying more if it keeps rising makes sense, all with a tight stop near 61.
SUGGESTED SELLS
Partial Sells
Klaviyo (KVYO) is off to a good start, though it is extended here – we think booking a little profit on today’s rally and holding the rest makes sense.
United Airlines (UAL) has gone bananas on earnings – take a few chips off the table and set your stop in the 60 to 61 area.
Full Sells
Coupang (CPNG) – technically fine, but we’ll take our small profit off the table as it doesn’t appear to be a real leader
KKR (KKR) – this one is a leader, but it hasn’t done much in the past month since our recommendation and earnings are coming up. We’ll take the small profit here.
Ryan Specialty (RYAN) – nothing “wrong” with it but seeing some wild trading (for how this stock trades) and resistance in the low 70s. We’ll book a small profit.
SUGGESTED STOPS
Arista Networks (ANET) near 377
Blackstone (BX) near 154
Carpenter Tech (CRS) near 144
Carrier (CARR) near 78.5
CBRE Group (CBRE) near 117.5
Clear Secure (YOU) near 32
Coherent (COHR) near 85
Freshpet (FRPT) near 134
GE Aerospace (GE) near 179
Modine Manufacturing (MOD) near 122
RH (RH) near 320
Southern Copper (SCCO) near 107
Toll Brothers (TOL) near 147
Uber (UBER) near 76.5
United Airlines (UAL) near 61
Wheaton Precious Metals (WPM) near 61
Copyright © 2024. All rights reserved. Copying or electronic transmission of this information without permission is a violation of copyright law. For the protection of our subscribers, copyright violations will result in immediate termination of all subscriptions without refund. Disclosures: Cabot Wealth Network exists to serve you, our readers. We derive 100% of our revenue, or close to it, from selling subscriptions to our publications. Neither Cabot Wealth Network nor our employees are compensated in any way by the companies whose stocks we recommend or providers of associated financial services. Employees of Cabot Wealth Network may own some of the stocks recommended by our advisory services. Disclaimer: Sources of information are believed to be reliable but they are not guaranteed to be complete or error-free. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks involved. Buy/Sell Recommendations: are made in regular issues, updates, or alerts by email and on the private subscriber website. Subscribers agree to adhere to all terms and conditions which can be found on CabotWealth.com and are subject to change. Violations will result in termination of all subscriptions without refund in addition to any civil and criminal penalties available under the law.
