Our Cabot Tides turned positive a couple of weeks ago, and since then, most leading stocks and the major indexes have had huge runs. We added three new stocks when the Tides turned bullish, and most of our names are performing well. Yes, today was a bad day for leaders, but it’s way too soon to conclude it’s anything but a shakeout; most stocks were overdue for some weakness after heady runs of late. We’re always watching the situation closely, and we still have 30% in cash for the moment, but the evidence continues to tell us the bulls are in control. In tonight’s issue, we write about all of our Model Portfolio holdings (both new and old), and on page 5, we write about the topic of position sizing; it’s an interesting discussion that should help you when you come across a very volatile (or relatively sedate) growth stock. Going forward, we’ll be looking to put some money to work if the market holds.
