00:10 hi I'm Mike sto chief analyst of cabat
00:12 growth investor and cabat top 10 Trader
00:14 I'm here with your cabat weekly review
00:16 recording this late Friday morning on
00:18 February 9th I hope everyone has a very
00:20 fun and exciting Super Bowl weekend um
00:23 not much new with the market this week
00:25 it's just kind of what I said last week
00:26 just more so in both directions you know
00:29 the trend the major indexes is still up
00:31 led by NASDAQ S&P 500 big big cap stuff
00:36 and the action of leading grow stocks is
00:37 great with a lot of them continuing to
00:39 zoom higher not all of them there's been
00:40 a few more that have you know kind of
00:42 chilled out for a bit but obviously
00:44 there's still a lot of earnings gaps
00:45 higher and stuff like that um on the
00:47 flip side you know the broad Market not
00:49 even the broad Market but like the
00:50 average big cap stock it's just not
00:52 doing anything not going down just not
00:54 going up so there's kind of that growing
00:56 Divergence you have interest rates
00:57 cracking their intermediate term uptrend
00:59 or downtrend Trend I guess I should say
01:00 bonds cracking their uptrend and just
01:03 not a ton of like great entry points I
01:06 mean at least among the strong stocks I
01:08 look at a lot of charts say wow that
01:09 looks great but would I put a ton of
01:12 money in that stock right here no
01:13 probably not you know I do think there
01:14 could be some opportunities if we get a
01:17 rotation even to some growth names that
01:18 are just outside of you know Ai and
01:21 chips and networking and stuff like that
01:23 cyber security I do think there could be
01:25 some opportunities there if we see the
01:28 buying pressures broaden out there are
01:30 some earnings reports in the next couple
01:31 weeks that I'm interested in but you
01:32 know right now I think it's the same
01:34 sort of story I'm bullish I don't want
01:36 to give the impression I'm really super
01:38 cautious I think the market can be a lot
01:39 higher down the road and some of these
01:41 stocks can be a lot higher at the same
01:43 time you know I'm not flooring the
01:45 accelerator here some partial profits
01:48 you know selling some laggards and
01:50 trying to re redeploy those proceeds
01:51 into some fresher leading stocks that
01:54 ideally will emerge here in the next you
01:56 know one two three weeks we'll see how
01:58 it goes okay in C growth investors model
01:59 port portfolio I actually sold a couple
02:01 of small lagger positions holding the
02:04 cash for now we're up to about 30% cash
02:06 my guess is I'll put some of that to
02:08 work here ideal you know assuming things
02:10 don't kind of unravel or there's a huge
02:12 change in character um so we're looking
02:15 for opportunities put some of that to
02:17 work but again you know being Discerning
02:19 on the buy side and not afraid to hold a
02:20 little bit of cash here and see how
02:22 things play out okay all right let's hop
02:24 into the charts as usual I'm using
02:25 marketsmith which is a product of
02:27 Investors Business Daily you can learn
02:29 more at Market smith.com get on my pens
02:31 you can see here's the NASDAQ um it's up
02:34 again as I record this today you know
02:36 it's just it's extended but I'm not
02:38 going to make too much of it I'm more of
02:39 a trend guy but it is extended here S&P
02:42 500 um you know running higher 5,000 um
02:46 a lot of times what you do is you click
02:48 these round numbers uh 5,000 4,000 you
02:51 know for the first time or you know you
02:53 see it on the Dow a lot um it makes
02:56 headlines and then maybe you pull back
02:57 so we'll see how that goes but you can
02:58 see the the trend is clearly up New York
03:00 composite same sort of thing trend is up
03:03 um you know the I guess I'll let's look
03:05 at the like here's mdy which is the
03:07 midcaps you know this again this is just
03:09 same thing I mentioned last week um it's
03:11 not bad this is small caps this is the
03:14 worst one quote unquote the worst but
03:16 it's still above the 50-day line okay um
03:19 and even if you look at like RSP which
03:21 is the equal weight uh S&P 500 so we
03:24 have this Divergence and like I said
03:26 last week like I wrote this week it's
03:30 they happen all the time what it tells
03:32 you the more it goes is sort of you know
03:35 risk of some sort of changing character
03:36 is rising doesn't mean it's going to
03:39 happen next week or it might take a
03:40 month it might not happen um so it's
03:43 just it's just sort of a risk measure so
03:46 to speak okay so right now what I would
03:49 say is that the Divergence is happening
03:51 because the buying is concentrated we're
03:54 not seeing you know if this was down
03:57 here okay and the nasda stack was like
04:00 that that would be um more concerning I
04:03 guess because the there would be actual
04:04 selling pressures out there right now
04:05 we're seeing sporadic selling pressures
04:07 but like the number of stocks hitting du
04:09 lows on the New York is still pretty
04:11 well contained on almost every day you
04:13 have some potholes here and there but
04:14 it's not like you're seeing this sort of
04:16 um you know even small caps like I
04:18 mentioned they're not falling apart they
04:21 had this correction earlier in the year
04:22 they hit a higher low now they're
04:24 perking up they don't look great I would
04:26 still say it's a definitely a lagard but
04:29 it's not like you know there's some
04:30 massive selling pressure and it's
04:32 literally just you know Tech and AI
04:34 going up that sort of thing okay so
04:37 we'll see how it plays out but the trend
04:38 is up the action of leading stocks is up
04:41 and I wanted to mention this just real
04:43 quick um which I think I have on this
04:45 video I definitely have written about it
04:47 again I come on here every week so you
04:49 know we're talking about what happened
04:51 this week but I mean you know I'm more
04:53 of an intermediate to longer term guy
04:55 and this is the IBD 50 index which again
04:57 is just like good relative strength good
04:59 earnings growth good return on Equity
05:01 those typee of names okay which is the
05:02 pond I generally fish in I don't
05:03 actually look at this list not that you
05:05 should or shouldn't I'm just saying it's
05:06 a type of stock okay and this is just
05:08 what happened you know during the bare
05:10 market and then during 2023 so you know
05:14 bigger picture if all goes well and the
05:16 FED Cuts rates this year and the world
05:18 doesn't you know implode or whatever um
05:21 this should be quote unquote should be
05:23 who knows early in the advance
05:24 relatively early big picture okay so I
05:27 don't want to give the impression that
05:28 um you know I come on here and talk
05:29 about keeping feet on the ground to me
05:31 it's just the flip side of you know when
05:33 things were down here we were defensive
05:35 we had a lot of cash but I was saying
05:36 make sure your watch list is ready you
05:38 know here's some names holding up and if
05:40 we get going you know you could buy them
05:41 and finally things clicked obviously in
05:43 November um it's just kind of like that
05:45 right now just the opposite where it's
05:47 just saying hey ride your winners enjoy
05:48 it but you know don't go take out a
05:51 second loan on your house and start
05:53 throwing money at you know your favorite
05:54 AI stock so to speak okay now with all
05:57 that said um fft is kind of an ETF for
06:00 that so this is leading stocks right
06:02 here very strong very extended but um
06:04 hopefully early in the big picture right
06:06 now though clearly extended on the
06:08 upside okay um but we are just seeing
06:11 know you know I mean this is Arc had a
06:14 big correction now it's coming back IPO
06:16 fund correction coming back I would say
06:19 xlp um no no rush into defenses it's not
06:23 like you know things have changed as a
06:24 rush into defensive stocks and I would
06:26 just say this is very very tertiary but
06:29 I do keep a distant eye on like you know
06:31 this is GameStop um it's up today so
06:33 it's up 5% today so who knows maybe it's
06:35 starting but we're not seeing yet the
06:39 super speculative Juices Flow where you
06:41 have the the GameStops and the um beyond
06:44 meat you know fake meat you know again
06:45 today they're popping but you know this
06:47 is you can see this this happened for
06:49 two three weeks and then it just
06:51 disintegrated okay um you know Wayfair
06:54 is another one W I mean you know I these
06:56 are like I said very very tertiary indic
06:59 ators but it's not like we're seeing all
07:01 the speculative junk start to flow now
07:03 maybe a week or two from now that's
07:05 what's going on and that will be another
07:06 sort of yellow flag but to me that's
07:08 kind of that's kind of there now I would
07:10 say like you know not just extended but
07:15 Holdings I like the story you know it's
07:18 a new issue it's dominant it's I'm not
07:19 going to get into the story here um but
07:22 you know it sort of gapped up on
07:23 earnings to 100 which is a huge gap and
07:26 then they ran it to 125 during the day I
07:28 think it was up like 7 % during the day
07:30 and then it came down so it looks good
07:32 I'm not I have nothing against it I'm
07:34 not predicting where it goes but you are
07:37 getting some of that um a little bit of
07:39 you know it's one thing to have earnings
07:40 gaps nothing thing to have froth this is
07:42 just SMH which is clearly the leading
07:44 group just extended to the upside so
07:46 again I'm just saying I'm not trying to
07:48 be cautious I'm not saying go sell all
07:49 your winners I'm certainly not saying
07:51 short stuff or anything like that I'm
07:54 just saying you know three you know
07:56 November and December a lot of things
07:57 were kicking off their advances
07:59 today they're two three sometimes three
08:02 and a half months into those advances so
08:04 you know the risk profile is a little
08:05 different in terms of how you want to
08:07 buy and all that sort of thing okay um
08:09 on the flip side we also want to say um
08:11 talk about here rates I don't want to
08:13 forget about this again this chart's a
08:15 little messy um it's kind of neat on
08:17 stock charts you can it looks a little
08:19 bit better but this is the 10-year note
08:21 and I guess all I want to point out here
08:23 is just it's above the 50-day line and
08:25 it's kind of held here for a few days
08:27 and it's testing sort of new
08:30 oh geez multi-week highs back to like
08:32 early December okay and if you look at
08:34 the fiveyear note this is the this is
08:36 the yield not just the note okay um you
08:38 know again holding above the 50-day line
08:41 you know out above you know I don't know
08:43 whatever six week highs or whatever does
08:46 that you know can we come in next week
08:47 and rates snc yes we could but we're
08:49 starting to see my point is that we're
08:50 starting to see this
08:51 downtrend um I guess I'll I'll say CRA
08:55 I'll say the downtrend is cracking I
08:57 wouldn't say it's cracking you know into
08:59 an uptrend yet but it's certainly not
09:01 going down I think it's fair to say that
09:02 the intermediate term trend is going
09:04 from down to at least neutral if you
09:06 want to think of it that way okay and
09:08 then of course I mentioned last week it
09:09 hasn't been as big an issue this week
09:11 but this is the K the regional Banks
09:13 ideally this was just a ShakeOut and you
09:15 know I don't need K or or XLF or
09:19 whatever Financial stocks to go up for
09:20 me to be bullish you know um but it's
09:24 usually best if they're not like
09:25 cratering because that can really throw
09:27 some fear into the market you you know
09:30 so we'll see how it goes so far it
09:31 hasn't really been able to bounce I mean
09:33 you know it's I had this reversal but
09:35 it's you can just see on the daily chart
09:37 it's you know it's it basically hasn't
09:38 bounced so you know if this kind of
09:41 continues lower and there's some issues
09:42 that's just something that's out there
09:44 plus rates are going up and all this so
09:46 like I said last week there's some
09:47 yellowish Flags whatever you want to
09:49 call them some things to watch I guess
09:51 is how I would put it um but the primary
09:53 evidence is bullish so I'm still bullish
09:55 but you know like I said keeping the
09:56 feet on the ground okay when it comes to
09:58 new buying let's get into into the fun
09:59 stuff individual stocks yeah I would
10:00 just be looking for I'd just be more
10:02 Discerning and looking for things that
10:04 even if they're in a strong group you
10:06 know maybe they've just pulled back
10:07 they're totally fine so this is Advanced
10:08 Micro Devices um again it's had a huge
10:11 run it's doubled from you know Halloween
10:14 so again you know you're not probably
10:17 not early in the you know intermediate
10:19 term advance but with that said you had
10:21 this huge volume cluster here you had
10:23 this pre and sort of post earnings run
10:25 up here I guess that was a pre- earnings
10:27 run and night it's chopped you know it's
10:30 had pretty big it doesn't look much but
10:31 185 down to 165 you know in a couple of
10:34 days but it's still above the 25 day
10:37 line so this is just something where you
10:39 know if it chills out a little bit more
10:40 maybe you take a swing at it you put a
10:41 stop down here um certainly could re
10:44 accelerate higher if the AI stuff keeps
10:46 moving but AMD looks pretty good I'm
10:48 looking more like I said sort of outside
10:50 the you know AI chips just because most
10:51 of those you know they look great I mean
10:53 you look at Nvidia it looks great look
10:56 at Nvidia um can you buy it here if you
10:59 um and maybe it goes up here first um
11:01 but at some point it's going to pull
11:02 back they have earnings in a week couple
11:04 weeks but you're just seeing a lot of
11:05 these stocks that look great but the
11:07 question is do you want to buy them so
11:08 outside of chips and AI there are some
11:10 opportunities this is Shift 4 um which I
11:13 like and if you just look at the weekly
11:15 chart um it hasn't gotten going so a lot
11:17 of these haven't gotten going but it has
11:18 this kind of huge base it had this huge
11:20 you can see the accumulation down here
11:22 and just very very tight in here it's
11:24 it's had like almost like um it's like
11:27 eight weeks within a CLE a point half
11:29 close on the weekly chart something like
11:31 that and no real volume down here no
11:33 selling no buying kind of like the broad
11:35 market like we looked at the midcaps or
11:37 whatever it's trying to pop a little bit
11:38 today it's just sort of I wouldn't say
11:40 it's anything decisive um but just a
11:43 nice setup uh they got earnings in a
11:44 coule you know three weeks it looks like
11:46 type thing so Shift 4 is one um I didn't
11:49 want to mention this I should have
11:50 mentioned this first this is cloud flare
11:51 we're still seeing earnings gaps now
11:54 this week we've seen I showed you arm we
11:57 have seen you know the snap snap not
11:59 that snap to me was some huge leader but
12:01 snap pins okay we're seeing some of
12:03 those um Expedia was one that looked
12:05 good okay but Cloud flare nevertheless
12:08 is one that's in the um I guess sort of
12:11 a little bit cyber security networking
12:13 um but it's been kind of toying with
12:14 this 80 level for um I don't know two
12:17 months here and then today you can just
12:19 see it kind of you can see it's kind of
12:21 chopped up and down around this sort of
12:23 80 level and today it's kind of leaving
12:24 that behind so that is kind of that is
12:26 one that's interesting we'll see how it
12:27 closes we'll see how it does next week
12:29 uh but Cloud flare looks pretty good
12:31 okay but back to the um I should have
12:32 mentioned that first but then there's
12:33 Shift 4 um Academy Sports and Outdoors
12:36 they have an odd off fiscal year so they
12:38 don't have earnings coming up for a
12:39 little bit but again you just kind of
12:41 have this nice base nice ramp here
12:43 whatever weeks up in a row and now it's
12:45 one two 3 four so now six weeks sideways
12:47 off the 10-week line you know it
12:49 wouldn't surprise me if some of these
12:50 things maybe started to pick up the
12:52 slack um dve and Busters play um this
12:55 one kind of did I wouldn't say the
12:57 volume here was huge it's it's not the
12:58 thickest stock of all time um but you
13:01 can see this is the one that had you
13:03 know two and a half three years of just
13:06 very very range bound trading seemed to
13:08 change character here with the market
13:10 November December and again you kind of
13:12 have this pull back to the 10 we line or
13:15 five week consolidation however you want
13:17 to look at it and now it's starting to
13:19 stretch its legs higher not saying I'd
13:21 be chasing things per se but um just
13:23 seeing more of these maybe stretch their
13:25 legs um also on the um this is more of
13:28 an off the bottom this is Boot Barn kind
13:30 of a long-term cookie cutter and all
13:32 that but anyway the pandemic sort of
13:34 played with the numbers here earnings
13:36 went from two to six in one year
13:37 starting to come back down to earth here
13:39 but it's taken a while um but you can
13:41 just see the stocks you know here's your
13:43 bare Market uh on the weekly chart you
13:45 know tried to get going a couple times
13:46 really couldn't now bottoming out and
13:48 just notice just just noting it last
13:50 week you had a big earnings clue off the
13:53 bottom and some nice follow through this
13:55 week um you know so that looks pretty
13:57 good okay um by biotech still watching
13:59 those um I will say again not to harp on
14:02 the negative ones but um neurocrine
14:05 didn't react well to earnings so far not
14:07 broken uh this is nbx but um itci which
14:10 is intracellular um they do have event
14:12 risk q1 Q2 clinical trials that's the
14:15 nature of Biotech so whether you want to
14:18 play it or how you want to play it is up
14:19 to you earnings in couple of weeks as
14:21 well but again you kind of had this so a
14:23 lot of these stocks you know just didn't
14:25 do anything um nice volume accumul ation
14:29 nice run here November December and this
14:31 is kind even though it's a totally
14:32 different sector it kind of looks like
14:34 ASO or it looks like um David Busters
14:36 where you have this sort of five six
14:38 week consolidation very tight very quiet
14:41 no one's paying attention to this stuff
14:42 right you're paying attention to Nvidia
14:44 or whatever right um smci um but nice
14:47 and tight in here the 10e line starting
14:49 to push up a little bit of an increase
14:50 in volume this week let's see if it can
14:52 get going um on a more sort of sustained
14:55 basis um back into sort of the chip area
14:57 so this is um if you're going to look at
14:59 some of these um either pullbacks or
15:01 fresher names so this is Taiwan semi
15:04 which gapped on earnings uh we had it in
15:06 top 10 here luckily and it it's really
15:09 ramped uh Mike what are you what are you
15:11 talking about isn't this extended it is
15:12 extended in price but not in time it
15:14 just broke out four weeks ago not saying
15:17 again you can make the decision what to
15:18 do maybe it doesn't pull back but if we
15:20 do get some sort of exhale in the market
15:23 OR tech stocks or rotation or whatever
15:26 um maybe this thing can pull back and
15:27 chop around kind of like we saw AMD do
15:29 you kind of have four or five days where
15:30 it's kind of down scary but doesn't
15:32 really do anything wrong hangs out for a
15:34 while moving averages catch up just a
15:36 name um to keep an eye on um asml same
15:39 thing pretty much gapped I think the
15:42 next day um and it's run obviously kind
15:45 of straight up here um but again so it's
15:47 kind of extended in price short term um
15:50 but not time it's only been running here
15:52 for a few weeks so to speak so not you
15:54 know it could easily pull back but
15:55 you're kind of looking for some of these
15:56 to maybe shake the tree hold hold up and
15:59 then consolidate okay um a lot of cloud
16:02 software sort of Niche names so I um
16:04 this is AppFolio I think I did I
16:06 mentioned this last I might have
16:07 mentioned this last week but huge
16:09 earnings move um it it really didn't do
16:12 any It was kind of six months of nothing
16:14 huge earning moves alltime record volume
16:16 again one of those kind of Clues and
16:18 still acting well appf it is a thinner
16:20 Trader but it's higher price so the
16:22 liquidity is okay um just a heads up or
16:25 whatever um snowflake this is a much
16:27 more liquid name snow is the symbol um
16:29 they got earnings it's not for three or
16:31 four weeks but this is kind of one of
16:32 these that's um not exactly like Cloud
16:34 flare but sort of had this sort of
16:35 longer term resistance and now kind of
16:38 letting loose on the upside it looks
16:39 like this will be the third straight
16:41 week two of above average buying volume
16:43 so it's almost like a excuse me a weekly
16:47 uh volume cluster of sorts okay um and
16:50 then just I I mentioned this couple more
16:53 here iot Sam Sarah this is a I love this
16:56 story um but it's just been very Herky
16:59 jerky the valuation is huge maybe that's
17:01 why um but you know it kind of has this
17:03 huge move here and then it just you know
17:06 chops and then it kind of gets going
17:07 here oh now it's ready to go and now
17:09 it's chop sideways I will say that um
17:12 it's been making progress but when you
17:14 look at this consolidation on the weekly
17:16 chart messy when you look at this
17:18 consolidation messy um but now you look
17:20 at kind of the third time and this is
17:22 just a much tighter more controlled of
17:24 course the market is healthy but that's
17:25 that's the whole ball game so we'll see
17:27 what happens I'm keeping it just an eye
17:28 on it I do love the story and the gross
17:30 all that stuff um still has work to do I
17:32 wouldn't say it's a leader here but just
17:34 iot is something I'm keeping an eye on
17:36 and then just to kind of put it on your
17:37 list uh a few different things axon um
17:40 this one's starting to trying to come
17:42 out here it kind of had this um relative
17:46 to the market it hasn't come out to a
17:47 new high but it's it's just kind of come
17:49 under more control here obviously
17:51 compared to this stuff um and just a
17:53 very tight structure trying to come out
17:55 here this week not the biggest volume
17:57 and it is a Herky jerky Trader but looks
17:59 pretty good and then just a couple here
18:01 like HubSpot some of these were leaders
18:04 last year weren't really leading this
18:07 time around now they're coming out to
18:08 new Highs but they have earnings next
18:09 week so HubSpot is one hubs um just kind
18:12 of keep an eye on procore not really a
18:15 leader but uh kind of one of these Cloud
18:18 software names that's in a setup that
18:19 has earnings next week and then um
18:21 Airbnb which um has built this kind of
18:24 nice base it kind of I always keep an
18:26 eye on these big liquid names that are
18:28 you know popular Airbnb you know
18:29 everyone knows it and it's growing and
18:32 it's a good company um eventually you
18:34 can get you know 2200 funds on it maybe
18:36 it's never going to be a great stock but
18:38 sometimes if things kick into gear it
18:40 can kind of attain liquid leader status
18:41 just because of the liquidity the
18:43 dominance the story and that sort of
18:45 thing but it's a nice it is a nice setup
18:46 here into earnings I will say um today
18:49 Expedia is getting hit on earnings uh
18:52 but they're not really able to bring the
18:54 stock down too much so just something to
18:55 watch so o overall I mean there's a lot
18:57 of names at l it's call it a bull market
19:00 call it an uptrend whatever you want to
19:01 call it but there's a lot of names
19:02 working a lot of names hitting new highs
19:04 there's a lot of stuff that's extended I
19:06 wouldn't say there's a lot of names that
19:07 are like Super Fresh just breaking out
19:09 and at good buy points right now so
19:11 whether it's shakeouts or consolidation
19:13 or rotation you know you just want to
19:14 have your watch list there on one hand
19:16 on the buy side and on the flip side you
19:19 know with the things you do own um
19:21 depends how you want to play it if
19:22 you're a shorter term player obviously
19:23 you can take some profits but you know
19:25 you want to let most of it run but just
19:27 like I said keep your feet on the ground
19:28 hopefully these things hopefully I'm
19:30 totally wrong these videos are
19:31 completely wrong and all these stocks
19:32 are up another 100 points a month from
19:35 now I'm all for it but you know I like
19:37 to play the odds as well in the odds
19:38 favor you know after three months up and
19:40 things being extended you have to kind
19:42 of half expect a little bit of
19:43 turbulence here at some point okay so
19:46 overall bullish but again keeping your
19:48 feet on the ground okay that's all the
19:50 time I have for today thanks for
19:51 listening and be sure to come by again
19:53 next week for another cabit weekly
