From Cabot Top Ten Trader
When we did our research over the weekend, we really liked what we saw: Not only are the intermediate- and longer-term trends up for all the major indexes, the big-cap measures are in new high ground and, perhaps more importantly, we see a ton of recent breakouts acting well across a variety of industries. Combined with prior positive studies, we think the bull move has farther to run. That said, there are some minor worries to keep in mind—short-term sentiment measures are very complacent, and many leaders are also extended for the time being, meaning a rest/shakeout is a growing possibility. We think any pullback will offer up a bunch of solid entries, but in the meantime, it’s best to be a bit choosy on the buy side.
Updated November 18, 2019 