The market finished Friday mixed, with the Dow rising 30 points but the Nasdaq losing 6 points.
Nothing has changed with our market timing indicators, so while last week was generally a constructive one for the market, we remain cautious, holding our strong, profitable stocks, but also holding some cash and honoring our stops.
On Friday, we sent a Special Bulletin regarding Veeva Systems, saying that if it closed below our mental stop of 58, we would sell our shares on Monday. While the stock did have a mid-day rally, it faded as the day wore on and closed clearly below our stop. Thus, we’ll go ahead and book our small profit today.
The sale will leave us with more than 40% in cash, which seems a bit high given the so-so market environment. Even so, we’ll hold the cash for now, but are considering add a new stock if growth stocks find support.
There are no other changes to the Model Portfolio. Of our six remaining stocks, we’ll leave Alibaba, Facebook and PayPal rated BUY, while ProShares Ultra S&P 500 Fund, Shopify and Universal Display are rated Hold.