The market has taken a turn for the worse, and our market timing indicators are reflecting that -- our Cabot Tides flashed a new sell signal on Monday. Thus, our advice is to play some defense, raise cash and cut back on most new buying. However, you shouldn’t stick your head in the sand, anticipating a return to the bad old days of 2008. Our long-term Cabot Trend Lines are still bullish, as is the Two-Second Indicator, which remains in fine shape. So the odds strongly favor this being an intermediate-term correction, not the start of a new bear phase. In the Model Portfolio, we’ve trimmed our sails and now hold 40% cash; our next moves will depend on the market’s action. But know that we’re also busy monitoring the landscape for potential new additions, which will reveal themselves through their own resilience. All in all, now is a time for caution and patience, but also time to take a step back and to ready yourself for the time when the bulls re-take control.
