WHAT TO DO NOW: As we write about in tonight’s issue, there are many crosscurrents out there, with some growth names cracking while others emerge on the upside, so we’re selling laggards while aiming to add fresher, stronger names. In the Model Portfolio, we sold MP and GEV last week, and today we’re going to sell Oracle (ORCL), which tripped our mental stop today. That said, we’re also going to fill out our position in CrowdStrike (CRWD), adding another half-sized stake, and start a new half position in Vertiv Holding (VRT), all of which will leave us with around 38% in cash.
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The major indexes are down just a bit so far today, with some rotation going on.
The market remains very mixed with lots of crosscurrents, whether you’re talking about growth stocks, the broad market or even our market timing indicators, where our Two-Second Indicator is flaring up and our Cabot Tides are nearly on the fence. Thus, we’re continuing to go slow but are cutting bait on names that crack, while aiming to redeploy the money into stronger names.
Last week, that meant selling MP Materials (MP) and GE Vernova (GEV). Today that means selling Oracle (ORCL), which, after holding the 50-day line for a bit, has broken down today. SELL ORCL
However, we are going to fill out our position in CrowdStrike (CRWD), adding another 5% stake, while starting a half-sized position (5% of the account) in Vertiv Holding (VRT). After these moves we’ll still have around 38% of the portfolio in cash.
We’ll have full details in tonight’s issue.
Don’t hesitate to email me directly (mike@cabotwealth.com) if you have any questions.
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