From Cabot Top Ten Trader
The major indexes have been relatively quiet this week, with most up a small amount (less than 1%). But the noteworthy action occurred among leading growth stocks, many of which saw follow-on selling from last week, causing more than a few breakdowns and lots of iffy charts. It’s still a bull market, but for the near-term, we’ve turned a bit cautious as we see how the recent rotation/selling plays out. For the most part, we think taking things on a stock-by-stock basis makes sense—if something you own acts fine, hang on, but we wouldn’t ignore or be buying into huge bouts of selling in stocks that have doubled or tripled in recent months.