The top-down evidence isn’t completely green, but it’s certainly taken steps in the right direction, with our Cabot Tides clearly on a buy signal, the broad market improving in the face of tons of bad news and sentiment still in the dumps. We think there’s a decent chance this rally can morph into the real deal.
That said, there’s no rush to jump in when it comes to growth stocks, as few are really moving on the upside–the sell-on-strength pattern remains in place, with far more air pockets out there than moonshots. That can change, and if it does, we’ll embark on a buying spree, but we still favor going slow on the buy side for now.
In tonight’s issue, we go over all our stocks and our recent moves, as well as dive into the sell-on-strength action, which to us, is the #1 market trait of 2022. When it ends, many will likely be caught leaning the wrong way (selling/shorting at new highs), but that’s what we’re waiting for to floor the accelerator.