Sellers Still Lurking
The first three and a half weeks of October were brutal, with the S&P 500 (down 11%) and Nasdaq (down 14%) cascading significantly, turning both our Cabot Tides and Cabot Trend Lines bearish as we raised a boatload of cash. But those...
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Over the Falls
During the past few weeks, we’ve seen huge up days, crushing down days, dramatic reversals (like today’s), big earnings gaps (up and down) and a slew of big-font headlines ranging from U.S.-China trade rumors, views from Fed members concerning rate hikes, resignations...
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Positive Action, but Need to See More
After a hellacious October that saw many indexes, sectors and stocks crash over a three-week period, the past week and half has been a welcome relief. With today’s solid post-election rally, the S&P 500 and Nasdaq have about...
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Trends are Down Until Proven Otherwise
When volatility picks up in the market, often after a sharp decline, investors are bombarded with predictions, many of them dramatically bullish (this is the buying opportunity of the century!) or bearish (another global financial crisis has begun!), in...
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Downpours
September was definitely a month of yellow flags—we saw lots of rotation out of growth stocks, two severe bouts of selling in leaders, and lots of sloppy, volatile action, which often signifies distribution after a long run. As we wrote in our last there...
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Gusts of Wind, but No Rain Yet
At the end of August, there were a lot of growth stocks (and growth-oriented indexes) extended to the upside, some near-term sentiment measures were a bit giddy and we were heading into September, a month that frequently its...
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Many Potholes, but Growth Stocks Holding
Every morning (after the kids’ lunches are done of course), I like to open up my laptop and take an unbiased look at the whole market—not just the growth stocks I recommend and follow, but various sector ETFs, measures...
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Sellers Look Worn Out
From mid June through mid August, the market was choppy, narrow, news-driven and rotational—not a great environment for making money, and in fact, we got knocked out of a few stocks as they cracked support, often following earnings reports. And two-month...
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Positive, not Powerful
When it comes to investing we’re big on rules. That’s because, if you invest solely by emotions and gut instinct, you’re bound to lose your way. That’s why we write about our key market timing indicators in every issue, and why have...
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As we've seen this year, investing in cryptocurrency comes with massive risk. But there's one more lesson for those who were all in on the blockchain craze.
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Autonomous driving is a $77 billion industry waiting to explode. But these self-driving car stocks are already taking off.
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Growth Stocks Hit, Bull Market Fine
For most stocks, 2018 has been a slog, with financials, industrials, consumer staples, transports and other areas doing much more chopping than trending. Growth stocks, though, have been winners—growth-oriented indexes like the Nasdaq and S&P 600 SmallCap have very...
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Not Perfect, But Pretty Good
Just about every morning when we check the financial media’s scuttlebutt, about 80% of the news is negative. Many of these are fundamental—the trade war, the Fed’s rate hike path and unwinding of its balance sheet—though some concern the itself,...
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The final company in our series of 10 forever stocks to buy in 2018 is a healthcare powerhouse whose stock has been in an uptrend for more than two years.
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Still More Good than Bad
When you get down to it, the market is an odds game. No matter what anyone tells you, nobody can know for sure where stocks are headed, which is why the best investors are like detectives—collecting and analyzing the to...
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Growth Stock Bonanza
Not much has changed over the past two weeks when it comes to the overall market. The intermediate- and longer-term trends are still pointed up, with growth-oriented indexes like the Nasdaq and S&P 600 SmallCap leading the way. On the other many...
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Primary Evidence Looks Great
For large swaths of the market, the correction that began in late January is still hanging around. The S&P 500, for instance, has made up less than two-thirds of its 2018 decline and is still nearly 4% off its high. Dow...
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Bitcoin and stocks were red hot in late 2017. Now both have cooled off. But one look at a chart of Bitcoin vs. the stock market shows which has more risk.
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Waiting For Follow-Through
One of the key concepts to keep in mind when you examine a stock chart is “base, breakout, follow-through.” Many people will get excited seeing a nice setup (base) that forms over many weeks, and even more will get giddy when see...
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Firm Foundation in Place
When you’re a student of the market, most of your focus isn’t on minute details like debt maturity schedules, gross margins and depreciation expenses, but instead on how the market actually works. And when it comes to market timing, one the...
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