The past two weeks have been bearish for the market, with the Cabot Tides joining our Two-Second Indicator in negative territory. We sold Cabot Oil & Gas last week, giving us 46% in cash and just seven out of a possible 12 stocks in the Model Portfolio. From here, the market could go either way—the odds favor further downside in the near-term, and thus we’re content to hold our cash and keep tight leashes on a couple of our stocks. But we’re also impressed with how many growth stocks (especially young ones) are holding up well; it wasn’t hard to build our watch list, which is on page 3. On page 5, we give you some tips on how to build or tweak your own watch list, as well as more details about the Two-Second Indicator, which has again proven to be an effective early warning system.
