From Cabot Top Ten Trader
We’re still mostly bullish—leading stocks are strong and the market’s main trends are up, and those are the two most important pieces of evidence to us. That said, it’s vital to keep your feet on the ground here, as the risk of some sharp pullbacks in extended leading stocks (either as part of a rotation into cyclical names or as part of an overall market correction) is rising.
We’re likely to pull down our Market Monitor to a level 7 come Monday given the uncertainties, but we advise you to stick with the game plan—look for good entry points on the buy side and hold onto your best performers, but trail stops and don’t be afraid to book some partial (or full) profits on the way up, either.
Updated July 10, 2020 