Current Market Update

From Cabot Top Ten Trader

The most bullish thing the stock market can do is go up, so by that measure, the market looks pretty bullish right here—most major indexes, advance-decline lines and a bunch of leading stocks have hit new highs in recent days, keeping the major trends pointed up. Short-term, things are a bit too quiet, so some wobbles wouldn’t shock us, but the next two or three weeks will likely see stocks being pushed and pulled by earnings season, which is getting underway now. All in all, our advice remains the same: Hold your strong stocks (though booking partial profits on the way up makes sense) and remain mostly invested, but for new buying, focus on stocks that have shown strong recent accumulation and look for decent entry points, especially if the firm is reporting earnings soon.


    • 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 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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