Current Market Update

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.

 

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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