Despite a strong seven-day rally in the Halter USX China Index, the Cabot China-Timer remains negative, telling us that a defensive stance is required. And with just 25% of the portfolio invested, we’ve been ahead of the curve. Our few remaining stocks are holding up well, and it’s tempting to think about inching back into some of the strong names on our watch list. But the Cabot growth rules have done well by us during this correction, and we’ll stick with them. Today we add a new name to our watch list and pull a previously sold name out of the reject pile and back onto the watch list. The next week or so will probably be crucial in revealing the next big move from the overall market, and we’ll be watching closely.
