The market has been in a correction for a couple of weeks, and it’s been deep enough to flip our Cabot Tides to negative; we’ve also seen something of a yellow flag from our Two-Second Indicator. In response, we sold a couple of stocks and are sitting on a 28% cash position. We’re content to hold that cash until our indicators flash the green light, but we’re keeping our head up and eyes open because we think the major bull move that began earlier this year is intact. Thus, while the short-term could continue to be rocky, you should remain optimistic that the best is yet to come. (Check out page 5 for some longer-term indicators that tell us just that.) We’re also refining our watch list; while we don’t present a detailed list in today’s Letter, our top ideas are on pages 4 and 5. And, of course, we review all of our Model Portfolio stocks, most of which are rated hold until the correction finishes up.
