The market weakened further today, with growth stocks in particular hit hard, and now our Cabot Tides has turned negative, telling us the intermediate-term trend of the market is down.
Thus, risk minimization comes to the forefront, and in the Model Portfolio, that now means selling one more stock, DexCom (DXCM), which has seen some heavy volume selling this week and is now well below its 50-day moving average.
We’re just a hair underwater in the stock at this point, and selling now will cut that loss short while increasing our portfolio cash level to a hefty 40%.
Additionally, we’re going to downgrade Autodesk (ADSK) to Hold, mainly because of high-volume selling today, though there’s support just below here at 147.
The rest of the portfolio remains unchanged, with Buy ratings on Five Below (FIVE) and Okta (OKTA) and Hold ratings on GrubHub (GRUB), Ligand Pharmaceuticals (LGND), Neurocrine Biosciences (NBIX) and Teladoc (TDOC).