The market took a big hit today, and it’s possible that the long-awaited market retreat has begun. But it’s also possible the market is simply working through some normal selling pressures after a huge advance and in front of earnings season. The bottom line is that our indicators are still positive, so we advise you to hold on to your top performers and give them a chance to consolidate should the market enter a choppy period. At the same time, you want to keep your laggards on tight leashes; in the Model Portfolio, we’re selling Cepheid tonight because the stock is beginning to break down. Overall, though, we’ll still be nearly 80% invested, and will take our cue from the market going forward. In tonight’s issue, we give you our latest thoughts on all our holdings, discuss our indicators and write about a few new ideas, including a potential glamour stock (page 5) that we’ve been watching since November.
