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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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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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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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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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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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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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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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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Positive, not Powerful
When it comes to investing we’re big on rules. That’s because, if you invest solely by emotions and gut instinct, you’re bound to lose your way. That’s why we write about our key market timing indicators in every issue, and why have...
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Growth Stocks Hit, Bull Market Fine
For most stocks, 2018 has been a slog, with financials, industrials, consumer staples, transports and other areas doing much more chopping than trending. Growth stocks, though, have been winners—growth-oriented indexes like the Nasdaq and S&P 600 SmallCap have very...
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Not Perfect, But Pretty Good
Just about every morning when we check the financial media’s scuttlebutt, about 80% of the news is negative. Many of these are fundamental—the trade war, the Fed’s rate hike path and unwinding of its balance sheet—though some concern the itself,...
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Still More Good than Bad
When you get down to it, the market is an odds game. No matter what anyone tells you, nobody can know for sure where stocks are headed, which is why the best investors are like detectives—collecting and analyzing the to...
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Growth Stock Bonanza
Not much has changed over the past two weeks when it comes to the overall market. The intermediate- and longer-term trends are still pointed up, with growth-oriented indexes like the Nasdaq and S&P 600 SmallCap leading the way. On the other many...
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Primary Evidence Looks Great
For large swaths of the market, the correction that began in late January is still hanging around. The S&P 500, for instance, has made up less than two-thirds of its 2018 decline and is still nearly 4% off its high. Dow...
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Waiting For Follow-Through
One of the key concepts to keep in mind when you examine a stock chart is “base, breakout, follow-through.” Many people will get excited seeing a nice setup (base) that forms over many weeks, and even more will get giddy when see...
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Firm Foundation in Place
When you’re a student of the market, most of your focus isn’t on minute details like debt maturity schedules, gross margins and depreciation expenses, but instead on how the market actually works. And when it comes to market timing, one the...
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Swing and a Miss by the Bulls
Three weeks ago the market was showing a classic bullish setup. The major indexes had tested and held their February lows and their 200-day moving averages, numerous broad market measures flashed positive divergences (which are seen at intermediate-term...
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Crocuses and Snowdrops
We’ve explained before how our market timing system is divided between the primary indicators (the trends of the major indexes and the action of leading growth stocks) and secondary indicators (things like sentiment, the action of the broad market, divergences and like).
The...
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Stay Close to Shore
After a quick, sharp two-week correction in early February, the market embarked on a rally that, on the surface, looked decent—it was enough to flip our Cabot Tides back to positive, and a ton of growth stocks raced up their on...
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Market Good, Leading Stocks Great
We’re big fans of keeping it simple when it comes to the market. We’ve experimented with more arcane timing indicators and stock chart tools than we care to admit, and found them all wanting to one degree or another. why...
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