Following last week’s big decline, the market has shown some resilience, and we continue to see a growing number of stocks showing great resilience. Even so, our Cabot Tides green light from two weeks ago has disappeared and the longer-term Cabot Trend Lines down,...
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From Cabot Growth Investor
What’s definitely true is that the intermediate-term trend isn’t pointed up; all major indexes are still below their 25-day moving averages, even after today’s bounce. And, longer-term, our Cabot Trend Lines remain clearly negative. Throw in the fact that few stocks hitting...
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Sellers Still Lurking
The first three and a half weeks of October were brutal, with the S&P 500 (down 11%) and Nasdaq (down 14%) cascading significantly, turning both our Cabot Tides and Cabot Trend Lines bearish as we raised a boatload of cash. But those...
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Remain defensive, but stay tuned as we could get a Cabot Tides buy signal as early as tomorrow if the market cooperates. Tonight, we’ll stand pat with our huge (90%-plus) cash position, but we’ll send out a bulletin if we get a green light.
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Over the Falls
During the past few weeks, we’ve seen huge up days, crushing down days, dramatic reversals (like today’s), big earnings gaps (up and down) and a slew of big-font headlines ranging from U.S.-China trade rumors, views from Fed members concerning rate hikes, resignations...
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There’s been plenty of volatility in recent weeks, but nothing has really changed with the market (trends are down) or our stance (highly defensive). We’re not heading to our Panic Room, though, as a strong rally from here could actually produce a Cabot buy...
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Market Views
Fear Index Up
The Dow sunk over 600 points yesterday, and the tech-rich Nasdaq also gave up triple digits, as Apple (AAPL) stock plummeted after another iPhone supplier warning. In addition, fellow blue chip Goldman Sachs (GS) suffered steep losses, pacing a broader decline...
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Positive Action, but Need to See More
After a hellacious October that saw many indexes, sectors and stocks crash over a three-week period, the past week and half has been a welcome relief. With today’s solid post-election rally, the S&P 500 and Nasdaq have about...
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The market has finally gotten off its knees, but our two main trend-following indicators are bearish and most stocks are still in rough shape. I advise you to remain patient and defensive but we could nibble on a stock if the market continues power...
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Trends are Down Until Proven Otherwise
When volatility picks up in the market, often after a sharp decline, investors are bombarded with predictions, many of them dramatically bullish (this is the buying opportunity of the century!) or bearish (another global financial crisis has begun!), in...
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The market has been bouncing decently during the past four trading days, but our Cabot Tides remain clearly negative and most growth stocks are still in steep corrections. Longer-term we're still optimistic the bull market will eventually resume, but until then, we'll be No...
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Market Views
Time to Trim Riskier Options
Most major market indexes were back on the move higher on Monday, led by real estate, consumer staples and utilities. Shares of technology companies were not participating, however. Nor were energy producers. And healthcare companies’ shares were largely combination...
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Downpours
September was definitely a month of yellow flags—we saw lots of rotation out of growth stocks, two severe bouts of selling in leaders, and lots of sloppy, volatile action, which often signifies distribution after a long run. As we wrote in our last there...
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The iffy action we saw among growth stocks in September has turned into a severe selloff so far in October. Our Cabot Tides are still neutral, but we have to be cautious given the recent volatility. We did some selling yesterday so no changes...
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Gusts of Wind, but No Rain Yet
At the end of August, there were a lot of growth stocks (and growth-oriented indexes) extended to the upside, some near-term sentiment measures were a bit giddy and we were heading into September, a month that frequently its...
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Remain bullish, but keep your antennae up. We’ve seen repeated bouts of selling in leading growth stock so far this month, but a few yellow flags have appeared. We’re holding our 16% cash position and placing two positions on Hold tonight.
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Market Views
Selling Elevated this Week
Among the Buying Climaxes (74), the Retailing sector featured heavily and among the Selling Climaxes (203) were Autos, Buildings and Precious Metals featured.
Buying climaxes take place when a stock makes a 12-month high, but closes the week with a They...
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Many Potholes, but Growth Stocks Holding
Every morning (after the kids’ lunches are done of course), I like to open up my laptop and take an unbiased look at the whole market—not just the growth stocks I recommend and follow, but various sector ETFs, measures...
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Remain mostly bullish as our trend-following indicators are still positive and most leading stocks are in solid uptrends. We have no changes in the Model Portfolio tonight as we are keeping some cash (17%) on the sidelines.
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Sellers Look Worn Out
From mid June through mid August, the market was choppy, narrow, news-driven and rotational—not a great environment for making money, and in fact, we got knocked out of a few stocks as they cracked support, often following earnings reports. And two-month...
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