During the past two weeks, most indexes pulled back to (or slightly below) their 50-day moving averages, testing the patience of investors who bought following the peak fears of Japan’s nuclear issues. Throughout the pullback, though, most leading stocks acted well and our market timing indicators never gave a red light. That led to today, when the indexes spurted ahead following some bullish earnings reports. We can’t say the uptrend is decisively reasserting itself quite yet, but we’re optimistic that the next big move will be up. We have no changes in the Model Portfolio tonight, but if the constructive action continues, we could put some of our 30% cash position to work soon. In tonight’s Letter, we again write about the 3D movie stocks on page 5; both look poised for higher ground if their earnings reports are well received in the weeks ahead. And, of course, we write about some ideas on page 4 and give you our latest thoughts on all the Model Portfolio stocks, most of which have been acting well.
