From Cabot Top Ten Trader
Near-term, some wobbles are possible, but overall we think the market’s likely to head higher over time. Individual stocks have been trickier—some look great and are racing to new highs, but the past couple of weeks have also revealed some potholes, too. There hasn’t been a rash of breakdowns (a few here and there), and we continue to think most (not all) of these initial pullbacks will end up finding support. But honoring stops is obviously important as well. All in all, we remain bullish, and ideally, the news flow will subside somewhat and stocks can get back to “normal” action. In the meantime, (a) you should consider keeping new buying light, and (b) take things on a stock-by-stock basis—if a name has shown great power and has consolidated (relatively) calmly for a couple of weeks, take a swing at it. Conversely, if something is sinking, honor your stop.
Updated December 13, 2019 