[Music] hi I'm Mike sto chief analyst of cabat growth investor and cabat top 10 Trader I'm here with your cabat weekly review recording this late Friday morning September 27th almost October um it's been a pretty quiet week from a top down perspective I have seen some churning and some selling on strength in the growth arena with some of the you know High relative performance stocks but it's not a total surprise it's kind of a you know sloppy time of year I'm not a big seasonality guy but a sloppy time of year we've obviously had some big moves in some of these stocks so nothing abnormal just a little bit of softness under the surface you know stepping back I think my opinion really hasn't changed over the past couple of weeks I think most of the evidence is positive whether you're looking at intermediate term trend of the indexes even some growth measures a lot of individual stocks look pretty good you know that sort of thing so we've been doing some buying at the same time I wouldn't say that the evidence tells you that you know Fidelity and tro price and all these guys and gals are you know buying hand over fist day after day after day it's not a runaway type Market it's positive but I wouldn't say it's powerful and they're still like a defensive flavor to it you know the Dow is outperforming the NASDAQ and just stuff like that and just from a student of the market perspective a lot of good news has come out right the FED is cutting rates which is a big picture positive don't get me wrong but you know people are kind of excited about that China Unleashed a lot of stimulus this week but if anything I saw sort of more selling than not in those stocks but more selling than buying across the broad tape this week so you know elections coming up that sort of thing so we've been doing some buying but we're picking our spots holding on to what's working which is a lot of stuff we own thankfully I'm just thinking that the path of least resistance is up but I'm not quite sure you know it's it's go time where it's like oh geez if we don't buy this week we're going to miss out on these five or 10 stocks I think we're quite there just yet in cic growth investors model portfolio like I said we've been doing some buying but we still have about 30% cash the stocks we do own we really like they're doing very well thankfully um but you know we're we held off buying this week honestly just because I did see some of that churning so maybe some of these things can exhale a little bit provide some better entry points or or we can just see how they pull back maybe they you know they really fall sharply or whatever just still seeing a lot of stocks that are doing well but not you know really going nuts on the upside we're seeing a lot of indexes still kind of within trading ranges and testing resistance that sort of thing so definitely taking just kind of getting into the Market's Waters but sort of stepping in into it as opposed to cannonballing into the pool okay let's hop into the charts as usual I'm using a program called Market surge product of Investors Business Daily you can learn more at Market surge.com so here's the NASDAQ and just this is just kind of what we see like you know is it above its moving averages yes is the intermediate term Trend by our definition up yes and that you know those are the most important things is it you know whatever I don't know how far but is it 3% or what very close to all-time highs yes so all that is to the good but it's also you know below its highs there's some resistance here you know there's been some selling on strength that sort of thing and we're just seeing a lot of that you know not a lot but a decent amount of that in the market which just tells us to you know pick our spots a little bit and not go wild um overall the intermediate term trend is pointed up you know S&P 500 new highs um new yerk composite which is kind of like the unweighted S&P 500 sort of thing that's new highs um you know small caps are still not quite there midcaps are still not quite I won't say not there but just kind of at their old highs so again it's just when when you look at this chart is it above the moving averages yes is there anything wrong with it no could it be setting up for sort of a big base on base breakout If you're sort of an IBD person or whatever like yeah maybe you know like I'm all for you know the fed's cutting rates um but we're just a lot of stocks that look like this which is like good promising good stories Good reaction to earnings but not you know not like oh geez I got to remortgage the house and just put put it into these two or three stocks okay um and if you just kind of look around in the growth Arena as we say with a NASDAQ you know this is the IBD 50 again positive but not you know powerful um if you want to look at the IBD 85 which is a little higher quality I think um again positive actually tagging new highs so nothing wrong with it but kind of you know kind of where it was a month and a half ago before the August the Late July early August sort of meltdown um the IBD not to you do all the IBD indexes but the IBD mutual fund indexes is Real Money Mutual Funds you know so this was kind of the late or the mid July Peak and you know I'm not saying it's trending down it's trending up it's above the moving averages but kind of more you know range bound sort of thing then of course you have this is the DIA which is the Dow Industrial uh ETF right looking good new highs can't argue with that and this is a good thing I'm not trying to say the dab going up is a bad thing the dab going up is fine um but you know then you compare it of course to the QQQ NASDAQ 100 different different you know ball waxs um we're also seeing it I don't want to make too much of this because this is I don't want to make it I think the action of individual stocks is definitely more good than bad definitely that said there is still some of this um what I call sort of I shouldn't say hero to zero because that makes it sound like terrible but here's like service now um which we still have in like top 10 or whatever you can see it has this big multi-on base tried to break out Market wasn't ready and then it just kind of ran on the upside and then this week some news came out to be fair kind of a part it's a whole story FBI rated a partner or something but you can just see it's kind of you know a pullback is one thing but it's just kind of come right back in it's above the 25 day line I'm not trying to make too much out of it but it's just kind of you know you know you'd like to see it sort of run or just tighten up up here and then go you know that sort of thing so just something to watch halim is not a big liquid leader like um service now and bigger picture it looks okay I mean this the breakout was here so I mean this pullback of late in Halo is not the end of the world but you're just seeing a lot of this where the stock looks amazing and you're like ooh let's try to get it on a pullback and then it pulls back and just breaks the 50-day line within two or three weeks you know there's there's some of that still going on which just tells me again it's not a bear I don't see any of these stuff that I'm saying like um the indexes are you know hitting resistance or whatever I don't see any of those as red flags I just see it as a sign that like like I said earlier it's not like the institutions are like last November December where it's like we got to buy you know and and and if you know there will be no pullbacks basically because we need to get invested I just get the sense where it's like you see some of that in certain stocks for a week or two and then there's an exhale here which makes sense given that again the good news is out the election's coming up stuff like that okay so we'll see how it goes now I will say that you know I'm nothing if not flexible so this is the unweighted equal weighted NASDAQ 100 and I've shown this before it's kind of hard to see on the weekly chart unless I blow it up which I'm going to try to do yeah so this is the weekly chart and you can see the 90 level ballpark 90 to 92 I guess has been kind of a cap here since going back to March something like that it did get above there in July for a week week and a half boom right back down and now it's kind of testing up here again so if a lot of these stocks and and indexes like this like the midcaps right and more importantly individual stocks look like this and they start really just we come in next week and it's like boom boom boom on big volume yeah don't get me wrong I'm not you know I could change my tune pretty quickly and put a lot of money to work I think pretty quickly uh not all in one week or anything but um so it's not that far away from it I just think right now we're still seeing sort of like I said some you know chip stocks bad then the next week they looked pretty good the stuff that ran that pulls back you know it's just one of those sort of environments that's all I'm trying to say okay now on to individual stocks there's a lot like I said there's a lot to like and it's from a lot of different areas okay so this is like Eagle materials obviously this is more of a building construction a little bit of infrastructure play to it I like this exp it's a little bit of a thinner name but um not really it's a $300 stock so it's not too thin but a nice volume cluster here after really a multi-on just sloppy period you're going to see pullback and all this stuff let me change the scale back okay so it's just been sloppy 200 dayline up down up down but looks like it's trying to get going here you can just see nice big volume here for a few weeks off the lows and then after the next pullback another couple of big volume weeks and now it's tightened up here that certainly looks pretty good um I said xal I don't even know if you can do that can I do um Market surge okay this is the airline index I'll just mention like one but you know oil price have come down the FED is cutting rates economic hopes are higher China's stimulating the hell out of things apparently um and you just seeing the airline Group which doesn't really it kind of dances to its own drummer you know it just kind of goes from this is an example of going from Zero to Hero but we're seeing some strength here you know I'm not sure I'd be chasing Airline stocks higher especially if oil prices bounce but maybe you do get a ShakeOut or some sort of consolidation that turns it into a structure um more on the growth side of things I wouldn't say so this is GE Verona which is technically alternative energy and stuff it's really more of the electrification play there's some wind in there and all that um it it it it basically built this structure you can see there's a lot of false starts and now it's really let loose on the upside big liquid name again this is kind of one of these things where say we do pull back and say the market doesn't fall apart and say this stock doesn't crater you know 30 points in a day or whatever you get a kind of a ShakeOut here or a week or two consolidation um that would be interesting there are some of these other power plays like Constellation Energy I think this is the one that signed the deal with Microsoft to do Three Mile Island you know the power plays on AI and whatnot just be aware with some of these there you know you're not early just like a lot of the chip stocks and stuff you're not early on it doesn't mean it won't work but you know at this point I'd rather be looking for something that's a little bit fresher um in the rate sensitive stuff we've seen oh this is I forgot to mention this my apologies I meant to mention this in the first section so the FED cut rates here and this is the TLT which is the bond fund you know what let let me do let me just make it this this is the yield on the 10year Note the FED cut rates down here and then rates 10year rates long-term rates treasury rates actually popped up 20 points not a huge deal still within an intermediate term downtrend but that has weighed on some rate sensitive stuff um which could look I mean kind of viable to me this is Dr Horton which to me is probably the best looking home builder again you're not going to get rich off home builders but kind of an ascending base here uh of sorts uh above the 50-day line rates have you know popped up people probably bought in anticipation of the FED sold some of that off okay that sort of thing but that looks pretty good um red fin is a hot potato um this is low price less quality but you know if the sector has turned up you know some of these things can get going and there has been some call buying from what I hear in some of these lower quality names so I'm just putting out red fin are dfn um you know real company and everything real sales no earnings yet but you can see the Stock's really accelerated higher and is in a nice little pullback here um sort of on the delivery I'm not going to say it's a theme but instacart uh which is maple bear C but they run instacart again new new merchandise we mentioned it before it had this run and these IPOs can take a while that's one thing that's frustrating about IPOs um but kind of had this nice base wasn't too deep built it and then some nice you know volume acceleration a on the breakout attempt last week again you know you're seeing one of these where it's like um I don't know I mean the B the buying what the buy point was probably down here but the point is is you know you ramp up and then it's kind of gives up maybe half the game pretty quickly so we'll see how it goes but so far so good certainly on that door Dash sort of the same thing uh Dash kind of a little breakout here to this big base I don't know if you want to call it a cup with handle or whatever and it stretched up here and looks pretty good okay there is some like very old overhead back from pandemic days but I'm not too concerned about that so overall that looks good I've mentioned this before with the volume Clues um some networking so some chip stocks I mentioned um I don't want to go on too many tangents here but so chips this is smh they they just still look like they need time you know it's just they're not really able to get going I mean if you're looking for a downside risk in the market or at least for grow stocks maybe chips have sort of a selloff here I know there's some good news this week week on earnings um but networking is interesting some of the AI stuff has come back Arista is funny because it's sort of a it's had a big run but it's had every opportunity to kind of quote die or have a 30% correction or whatever and it really just hasn't and um their best growth for the AI stuff is still ahead of it so it actually ran all the way to new highs here it's pulling back the last couple of days again there's been some churning this week and some of the growth stuff but that looks pretty good coherent is a newer name we had this in top 10 10 um nice breakout it's off to a good start kind of wild today but as I record this anyway so we'll see what happens but so far so good there's some other networking plays that look pretty good bull market stocks um I've mentioned a lot of them before this is Robin Hood though which I really likeed before we got wiped out of it I mean you know we can't hold down during that August wipe out it got all the way down to 14 bucks excuse me but it has come back and you know just has been acting sort of constructively and sort of tightening up here I don't really know what to do with it I'm just sort of bringing it to your attention that this whole sort of thing you know if you kind of take out a couple of these wild days near the low it kind of looks like a big consolidation between you know 19 and 25 or whatever and now the stock is maybe trying to attack the highs there um I can't get out of here without mentioning a couple other things so this is China stimulus big news this week probably the biggest sort of finan or economic news I guess so I I don't I I've gotten some questions about it and we'll be running our screens for top 10 Trader for for Monday but this is fxi which is just obviously sort of the most popular ETF you can see the volume on it this week is kind of out of this world whether that's good or bad I'll let you decide but certainly kind of after years of being in the dold drums China's coming to life um and you can pull up Alibaba you can pull up JD you can pull up whatever stock they all look pretty similar um I don't have any deep thoughts on China except to say that it's been out of favor for years the week hands I would have to imagine are out of it I mean every hand is almost out of it so I definitely think this has a chance to work whether it works here whether you know there's another few months of consolidation I have no idea yet but just definitely something you do want to flag and be open to even though you know we know the issues over in China but um certainly the stock action's interesting uh and last but not least I just want to flag Bitcoin Bitcoin um I can't really show this is ibit which is um an ETF and actually hold that holds Bitcoin one of one of those um you know there was a bigger run back here I believe so it's had kind of a big run up and now you've just had sort of this almost three waves down correction and now bitcoin's starting to perk up is this like my highest conviction trade no you know or highest conviction idea I should say no but you know we know that this thing can move we know that it's had right like a lot of growth stuff it's been consolidating since March you know I showed you that chart of the equal weight NASDAQ 100 very similar and you know it's just been kind of slightly lower lows here but now it's a little bit of a higher high and obviously if it could take out 40 or 42 that would be a good thing so just flagging it being open to some of those possibilities back to the market all I can say is I like what I see but again it doesn't I'm not sitting here saying gez I got to go put the rest of my money to work and be super super aggressive and Chase things higher because they're not going to pull back I don't really feel that right now I hope I'm wrong and I hope I come in next week and there's a ton of things breaking out and I will buy those you know I will buy those inside but at this point I think I see a lot of stuff that acts well I see a little stuff that's a little bit fluffy up here that might want to pull back so let's just see how it goes here in the days and weeks ahead overall bullish but picking our spots and stocks carefully okay that's all the time I have for today thanks for listening and watching be sure to come by again next week for another cabit weekly review