Current Market Update

From Cabot Top Ten Trader

It’s been a mixed week for the major indexes—as of this morning, it’s been a bit of a reversal week, with the S&P 500 and Nasdaq lower by 0.5% to 1% or so, but the small- and mid-caps are up 0.5% to 1% or so. However, the real action came under the surface—the past few sessions have seen another vicious rotation out of extended growth stocks and into the broad market (financials up nearly 1% this week) and some beaten-down names (oil stocks up nearly 3%).

There was no specific catalyst, but (a) with earnings season revving up and the election coming in just a week and a half, it’s likely big investors are hedging and positioning to some extent, and (b), it’s not uncommon for growth stocks as a whole to hit some potholes after we see a rush of stocks hitting new highs.

 

 

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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