The major indexes are doing their best to up, but underneath the surface, many leaders have come under pressure in recent weeks. In response, we’ve sold three stocks during the past three weeks, leaving us with 52% cash. That’s not to say we’re getting bearish--overall, we think the long-term bull market has further to run. But right now, we advise patience as we wait for buying pressure to intensify among leading stocks. In this week’s Letter, we reintroduce our watch list (page 3) and offer some tips for building your own (page 5). As always, we give you our latest thoughts on the market and our remaining stocks, and remind you on page 5 why it’s best to sell broken stocks ... even if the story still appears sound.
