From Cabot Growth Investor
What’s definitely true is that the intermediate-term trend isn’t pointed up; all major indexes are still below their 25-day moving averages, even after today’s bounce. And, longer-term, our Cabot Trend Lines remain clearly negative. Throw in the fact that few stocks are hitting new highs (less than 20 today on the Nasdaq!), and it’s a good reason to hold plenty of cash and, if you buy, to pick your spots (and stocks) carefully. Overall, it’s best to stay generally defensive until the market can prove it has more in it than a three- or four-day bounce, and to see whether some growth stocks can actually move out to new highs and stay there.