The market finished higher today, with the Dow up 69 points and the Nasdaq rising 17 points.
There’s no change in our overall market view from yesterday, as our market timing indicators are split, but many growth stocks are acting well. All told, we’re still taking things on a stock-by-stock basis, and we’re also holding some cash on the sideline until the market decisively pulls out of its month-long consolidation.
Tonight’s message is in regard to Shopify (SHOP), which has been a great winner for us so far this year. That said, the stock has now suffered a couple of sharp bouts of selling in recent weeks and could be ready to consolidate.
Long-term, we still think Shopify could be a big winner this year, but given the evidence, we’re going to take partial profits by selling one-third of our shares tonight, and place the remaining shares on hold. We’re planning on giving the rest of our position plenty of rope so we can hold through any correction that develops.
That partial sale will leave us with about 30% in cash. We now have four stocks rated BUY, including Facebook, Lumentum, ProShares Ultra S&P 500 Fund, and Veeva Systems. Stocks now rated HOLD include Netflix, Shopify and XPO Logistics.