Raymond James Chief Economist on Cabot: “Must-Have”

Jeffrey D. Saut, Senior Vice President and Chief Economist at Raymond James & Associates, quoted Cabot Top Ten Trader’s market view in his September 23, 2015 “Morning Tack.” Here’s an excerpt:

Raymond James Morning Tack: “Sage Advice from the Cabot Letter”
By Jeffrey D. Saut, Senior Vice President and Chief Economist, Raymond James

“The next few days will be telling—if the indexes can advance from here, we could receive an intermediate-term buy signal late this week, which will have us loosening the wallet a bit. But if the sellers show up again, all bets are off.”—Cabot Top Ten Trader (9-21-15)

On Monday, the insightful Cabot letter stated, “It’s been four weeks since the August 24th panic low and the market has done a decent job hanging in there—all of the major indexes probed higher into last week before selling off on Friday. Currently, the major trends of the market remain down, so we’re staying defensive. However, the next few days will be telling—if the indexes can advance from here, we could receive an intermediate-term buy signal late this week, which will have us loosening the wallet a bit. But if the sellers show up again, all bets are off. For now, it’s best not to anticipate anything.”

Plainly, we agree with the stance of “Not to anticipate anything”! Typically, I am not at a loss as to the near-/intermediate-/long-term trend of the equity markets. But, the Dow Theory “sell signal” of August 25th is a head-scratcher for me. Yes, the Dow Dive was a 5 standard deviation event like that of the “flash crash” on May 6, 2010, but as they say, “A sell signal, is a sell signal, is a sell signal.” So, we are in total agreement with the must-have Cabot letter. …

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