Current Market Update

From Cabot Top Ten Trader The market has been thrashing around during the past few trading days, with big gaps up and down, dramatic reversals and news-driven moves. But overall, nothing has really changed from our point of view—most growth leaders are still under after...
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Cabot Growth Investor 1454

Burden of Proof is On the Bulls At heart, we’re students of the market, which means one of the key tools we use is spotting the difference between normal, run-of-the-mill action and abnormal, noteworthy action, the latter of which is what usually causes us make...
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Cabot Growth Investor 1453

Has the “Re-Rotation” Begun? When our last issue went to press, growth stocks were under pressure. It wasn’t an epic disaster, but there had clearly been a change in character, with the initial market leaders (those that burst to new highs in April or May)...
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Cabot Growth Investor 1452

Growth Stocks Under Pressure We saw signs growth stocks were ready for a “real” correction in June, but the buyers showed up. And again in July, it appeared the red-hot growth titles were ready to rest—and some of them did—but most enjoyed yet another to...
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Cabot Growth Investor 1451

Positive, but Less Powerful One of the big reasons the market has always attracted us is that it’s a contrary beast, requiring investors to think and perceive things differently than in their day-to-day view of the real world. To the average person who turns the...
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Cabot Growth Investor 1450

The Music Changes When I first arrived at Cabot, I spent a lot of time in the summer of 1999 reading through all (yes, all) of the old issues of the Growth Investor (or Cabot Market Letter for you long-time subscribers). One of my stories...
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Cabot Growth Investor 1449

Still the Same Story Most times, the market environment is in a constant state of change, so when we report to you our latest thoughts on this page, there’s plenty to discuss—rotation among sectors, major moves in the indexes, earnings season or some big-picture that...
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Cabot Growth Investor 1448

Much More Good than Bad We believe it was the late, great Marty Zweig who once wrote that, in the world of the market, you’re never going to get everything lined up in one direction—if you had 100 market timing indicators, to get 85 90...
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Cabot Growth Investor 1447

Believe What You See Most of the time, the stock market and U.S. economy are in gear—there are always fits and starts, but as the economy expands, earnings generally grow and that contributes to a bull market. But it’s the times when the two moving...
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Cabot Growth Investor 1446

The Perfect isn’t the Enemy of the (Very) Good In a perfect world, everything would be lined up on the bull side of the fence. Market timing-wise, not only would our Cabot Trend Lines and Cabot Tides be bullish, but investor sentiment would be the...
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Cabot Growth Investor 1445

Growth Stocks vs. Everything Else When stocks were falling apart in late February and early March, the market was obviously very uniform—that is, everything was moving together, in this case straight through the floor. Near the lows, for instance, less than 4% of stocks the...
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Cabot Growth Investor 1444

So Far, So Good It was exactly one month ago that the S&P hit its crash lows, down more than 35% from its highs five weeks prior. Given the selling extremes, it was normal to expect a bounce, which began right away. But during past...
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Cabot Growth Investor 1443

Key Test for the Market Coming Up In the last issue, we wrote about some shorter-term signs of spring that had finally popped up for the market, including an encouraging positive divergence from the broad market as stocks collapsed. Throw in some horrid sentiment a..
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Cabot Growth Investor 1442

Some Short-Term Signs of Spring We can’t remember a time when the news flow came as fast and furious as it has in recent weeks, from state-wide shutdowns to big market swings to stimulus packages to Federal Reserve actions. That’s why it’s good to a..
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Cabot Growth Investor 1441

The Coronavirus Crash We’re not big into labels when it comes to investing, as too many tie their decisions to them, but we think it’s fair to say the action since late February has been a rolling crash, as the indexes have plunged 26% 32%...
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Cabot Growth Investor 1440

Correction in Full Force The coronavirus and its impact on the economy had been making a few headlines in recent weeks and impacting a handful of stocks, but this week, perception has changed in a big way, crushing the major indexes and most stocks. get...
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Cabot Growth Investor 1439

Positive—but not Pounding the Table Every morning when I open my laptop (yes, I do all of my work and research on a MacBook Pro—keep it simple!), I like to flip through a handful of charts of the major indexes and some key stocks get...
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Cabot Growth Investor 1438

A Bull Market Breather Despite a huge run and many signs that risk was elevated, the market was doing a great job shrugging off some high-profile worries in January (Iran, impeachment), soaring to new highs day after day. But the coronavirus and its impact...
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Cabot Growth Investor 1437

Just Because It’s Unusual Doesn’t Mean It’s Wrong The year is just over two weeks old, but we’ve already been subject to the Iran attacks, a Phase 1 trade deal with China, and soon, an impeachment trial in the Senate. Accompanying those are countless pieces...
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