WHAT TO DO NOW: The market remains resilient, but range bound, so we continue to go slow, with lots of hit-or-miss action out there. Happily, most of the Model Portfolio stocks are acting normally, though ahead of tonight’s update we’re going to make one small change—we’re going to sell one-third of what we have left in AppLovin (APP), which is up big again today after earnings, though it’s fading during the day. We’ll take some more profits off the table and hold the rest.
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The major indexes are up in the 0.6% to 0.8% range so far today, though there’s plenty of action under the hood as earnings season ramps up.
We’ll have a full update tonight, but today we wanted to send out a bulletin on AppLovin (APP), which gapped up once again in wild fashion after a great earnings report last night—but as we write this, the stock is down 65 points from its highs (though is still up 20% or so on the day). Business is still fantastic and the trend is obviously up, but we’re going to ring the register a bit more on the strength given the stock’s huge run and reversal today. SELL ONE-THIRD, HOLD THE REST
We’ll have more details on all our thoughts in tonight’s issue. Don’t hesitate to email me directly (mike@cabotwealth.com) if you have any questions.
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