Two weeks ago, the market was hitting new correction lows, and most investors were convinced we were heading into a new bear market thanks to an economy that was on the verge of a double dip. It was a recipe for a bottom! And, indeed, stocks have rallied enough in the past few weeks to create a new buy signal from our Cabot Tides! Thus, in tonight’s issue of the Cabot Market Letter, we’re putting a little cash to work, buying two new stocks. That will bring our cash position down to 50% ... not a bullish position by any means, but starting to come off the sideline is advised here. Our next move, as always, will depend on the market -- if we begin to make money and the market continues to act well, we’ll quickly add more potential leading stocks (possibly some that gap up on earnings reports). But if the rally fizzles out, we’ll back away. Overall, though, your best move is to go with the evidence at hand and put some money to work. We, of course, highlight our new purchases on pages 2 and 3, as well as review our other Model Portfolio stocks (all have bounced nicely in recent days). We also review some other intriguing ideas on page 4, and we give you some useful chart-reading tips on page 5. All in all, there’s plenty for everybody, so be sure to open up tonight’s issue to get all our latest thoughts.
