From a top-down perspective, the major indexes are weak and now both our trend-following indicators are negative. That alone is a good reason for you to stay defensive. However, what’s surprising is that, from a bottoms-up perspective, our Two-Second Indicator continues to tell us the broad market is not coming unglued, and there are many, many leading stocks that have resisted the market’s downtrend. Put it together, and we think that, if you have plenty of cash like us, you can do a little new buying -- in the Model Portfolio, we’re adding two new stocks in tonight’s Letter. However, we’re far from bullish; we’ll still have 50% cash even after the buys, and we want to see our trend-following indicators improve from here. We go into more detail on the action of leading stocks and their usefulness as a market timing barometer on page 5. We also write about a handful of intriguing new ideas on pages 4 and 5, as well as review all our Model Portfolio stocks, as usual. Plenty to read! So open up and get all the details inside.
