Current Market Update

From Cabot Top Ten Trader

Right now, the overall evidence remains unchanged: The trend of the major indexes and most stocks is still pointed down, and while many names are doing a good job of hanging in there, few stocks are in true uptrends. Looking ahead, the first sign of light would be a batch of growth-oriented stocks bursting to new highs, followed by the intermediate-term trend of the major indexes turning up (likely to take another week even if all goes well). Given the unprecedented situation, we’re open to anything, but until the buyers show more muscle, we advise sticking with a mostly defensive stance.

Comments

  • Stephen H.

    I think Mike Cintolo does an excellent job on the market, and by following his advice you will be rewarded …..

    • Thanks for asking. With Top Ten, we usually advise going slow — the market is open every weekday and we’re in touch twice per week (one issue, one Friday update). When sifting through the names, start with the Top Pick, and then look for any new “themes” (could be sectors or niches that are driving some names higher) that emerge, most of which we try to highlight. Then cut all losses short while letting most winners run. In time, you should have a portfolio full of high-performing stocks. Don’t hesitate to email me mike@cabotwealth.com with any questions along the way.

    • Hi John — I wouldn’t, at least not yet. Market is in a correction, and I have a hunch these stocks that have had giant runs are going to need time at the very least to build new launching pads. Great profit, but now that you’re out of it I’d just wait for a better market/proper entry point.

    • John — well, we tend to follow, not predict, and we’ve been raising cash at a quick pace, though that’s not to say there hasn’t been a ton of damage. That said, if we had bailed ahead of time on prior “corrections” we would have been knocked out of so many winners. It so happens that this decline has been a doozy, but selling everything after 3 bad days isn’t a good long-term strategy.

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