The market has been inching higher during the past two weeks, and we have seen some subtle improvement among individual stocks. But overall, the big picture is unchanged, with just as many stocks getting hit as rallying. (We’re actually selling one stock from the Model Portfolio tonight.) The good news is that earnings season could be a big catalyst; if some of the stocks we’re watching gap higher on earnings, they would offer solid entry points. In tonight’s Letter, we write about the market and some new ideas, as usual, but also have an interesting study that looks at how the market performs after flat years like 2011. (Hint: It’s bullish.) We think you’ll enjoy it. All told, we think the market is near a pivotal juncture--if earnings season is well-received, the bullish environment we’ve been waiting for will have arrived. As always, we’ll let you know if we have any changes in the days and weeks ahead.
