Our Cabot Tides turned positive last week, the first concrete sign that the bulls were making some headway. And in response, we added two new stocks to the Model Portfolio, our first new buys since July, before the market crashed. That said, our other indicators are still negative, and there are clearly plenty of headwinds out there. We’re taking it slow and still have 56% cash on the sideline. We’ll make the market pull us into a more heavily invested position; if it falls from here, we’ll hold our cash and keep our stocks on tight leashes. In tonight’s Letter, we write about our new buys, as well as a method for identifying potential leaders by examining their charts (see page 5). We think you’ll like it. All in all, the market has slowly improved, so be sure to read tonight’s Cabot Market Letter thoroughly for all of our latest thoughts and advice.
