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Today I’m putting CVS Health (CVS) and Home Depot (HD) on Hold because of the broad market, taking profits in half of our Costco (COST) position and selling half of Novo Nordisk (NVO) with plans to unload the rest in the coming days.

Cabot’s market timing indicators show that the intermediate- and longer-term trends of the market are both up, so you can continue to put money to work judiciously. We have one ratings change today—PGX to Hold—but most of our holdings were very quiet over the past week.

The Cabot Emerging Markets Timer continues to give a Buy signal, but many stocks in both emerging and developed markets are trading sideways. We have no changes to our portfolio today.

Most of our portfolio holdings are acting similarly healthy, and if you feel underinvested, you can add positions judiciously here. I’m switching Smucker (SJM) back to Buy today based on the solid technical support the stock demonstrated over the past week.

I recommend you take rate hike expectations and macro-economic predictions with a grain of salt (they’re fickle things), focus on stocks that are working well, and keep your goals and risk tolerance in mind.

A correction is still possible, but the overall trend of the market is clearly up. I have no rating changes today, although I’m watching U.S. Bancorp (USB) closely after the bank reported mixed results this morning.

The market started the week off on a good note but looks like it’s going to finish it off on the downside, with the major indexes solidly in the red this morning following some hawkish Fed talk and North Korea’s nuclear test.

Continue to hold your best stocks, but also hold some cash until our market timing turns positive. This week’s action has been encouraging, but with our Emerging Markets Timer still negative, we have to wait a bit longer before putting cash to work. Tonight, we’re selling our remaining half position in Volaris (VLRS), leaving us with about 35% cash in the portfolio.

There’s been lots of news on our portfolio stocks in recent days: upside earnings surprises, downside earnings surprises, share buybacks, dividend increases and M&A activity.

Continue to lean bullish, but also keep some powder dry as we wait for growth stocks to kick into gear. The overall market remains in great shape, and with the trends pointed up, we expect higher prices down the road. However, growth stocks aren’t participating, with many still under pressure. Our one change tonight is that we’re placing Proofpoint (PFPT) on Hold.

We’re nearing the end of third-quarter earnings season, and so far, 75% of companies reported results that beat Wall Street’s expectations!

How do you know if you own a “good” stock that will bring you capital gains?

The Cabot Emerging Markets Timer is flashing a robust buy signal. So, following our rules, we’re edging steadily back into the market, increasing our exposure to strong growth stocks. Today, we are upgrading SSW from Hold to Buy and initiating positions in SBGL and TLK with recommendations to Buy a Half position of each stock.

The sellers really took control last week, punishing many resilient stocks and pulling down the major indexes. And the distribution continued this week, with the major indexes (especially the Nasdaq) sliding persistently.

The broad market pulled back sharply this week, dragging the S&P 500 through the 2,100 level once again. Today’s Fed meeting, the shooting in Orlando over the weekend and the upcoming Brexit vote are all contributing to a heightened sense of uncertainty and a “risk-off” mood on Wall Street.

The market continues to perform well, with the market’s leading stocks outperforming the broad market indexes. These are good times, so enjoy them! But remember to guard against complacency; hundreds of earnings reports are about to flood Wall Street, and we’re sure that some leaders will fail, while others will soar. Thus, while the overall bull market shows no sign of ending, the next few weeks will be volatile. This week’s Top Ten contains another well-rounded batch of stocks, with a couple of biotech names highlighting the newfound strength in that sector. Another group that’s quietly improved has been the steel stocks, with Schnitzer Steel (SCHN) leading the way. The stock is in a mild pullback following a powerful breakout in recent weeks. We think it’s buyable around here.

Stock Name	Price	Buy Range	Loss Limit
TKC (TKC)	0.00	19-23	-
ALNY (ALNY)	0.00	30-35	-
AUXL (AUXL)	0.00	21-23	-
CIEN (CIEN)	0.00	44-46	-
FSLR (FSLR)	0.00	125-135	-
HANS (HANS)	0.00	56-60	-
OVTI (OVTI)	0.00	22-24	-
QMAR (QMAR)	0.00	19-22	-
RIMM (RIMM)	0.00	106-114	-
SCHN (SCHN)	0.00	65-70	-

We’ve been writing that the recent straight-up move in leading stocks, combined with signs of speculation in early October, all happening right in front on earnings season, was a recipe for lower prices in the short-term. And voilà! Stocks got hit hard last week and early this morning, as the sellers gained traction. At this point, the major market trends are up, so we believe this correction will eventually lead to higher prices … but we’d still be a bit cautious in the short-term, as selling pressures usually don’t disappear after just one week. This week’s Top Ten contains a few earnings winners from last week (always good candidates for further upside), as well as a few new names. Our favorite of the week is New Oriental Education (EDU), a Chinese firm that gapped up on strong earnings last week, but has pulled back with the market in recent days. It’s a bit thinly traded, and thus jumpier, but we think buying a little here will work out.

Stock Name	Price	Buy Range	Loss Limit
ANR (ANR)	0.00	24-26	-
AUO (AUO)	0.00	18 1/2 - 20	-
BIDU (BIDU)	0.00	310-320	-
EDU (EDU)	0.00	65-75	-
ISRG (ISRG)	0.00	260-272	-
LIFC (LIFC)	0.00	38-41	-
LULU (LULU)	0.00	45-55	-
MTL (MTL)	0.00	60-66	-
SA (SA)	0.00	32-36	-
SPWR (SPWR)	0.00	91-96	-

Last week’s sharp market break on huge volume brought down many leading stocks, and dropped the major indexes through key support. That means the intermediate-term market trend is now down, so you should be selling your losers and poor performers, holding on to plenty of cash, working on a watch list, and possibly making a few token buys here and there. Overall, we know the next bull move will bring many profit-making opportunities (they always do!), so your goal should be to get from here to there with as much of your capital (and confidence) as possible. This week’s Top Ten contains many interesting stories and solid charts, and buying a little on weakness is fine as long as you have cash stowed away. Our favorite of the week is LG Philips (LPL), a cyclical stock in a high-tech industry (LCD screens). Business is improving rapidly, and the stock’s huge-volume breakout means any retreat should be arrested just a little below today’s level.

Stock Name	Price	Buy Range	Loss Limit
LPL (LPL)	0.00	25-27 1/2	-
NUVA (NUVA)	0.00	39-42	-
ONXX (ONXX)	0.00	50-55	-
PCLN (PCLN)	0.00	96-101	-
GFA (GFA)	0.00	33-37	-
GOLD (GOLD)	0.00	32-35	-
ANR (ANR)	0.00	22-25	-
BVN (BVN)	0.00	50-56	-
DNR (DNR)	0.00	51-55	-
FSLR (FSLR)	0.00	150-165	-

With the market in a defined downtrend, the odds are against the bulls; buying a bunch of stocks, even if they have tremendous Top Ten-type relative strength, will usually cost you money. Thus, you should be focusing on building your watch list of resilient stocks with top-notch growth stories; doing that today will prepare you to pounce once the market gives us a green light. This week’s (and last issue’s) Top Ten is a great place to begin building – you’ll find a wide array of stocks here, from different industries with different prospects. Many are familiar names, which we view as a good thing; big investors are still sitting tight with many leaders, giving them a shot at racing ahead once the bulls re-take control. Our favorite of the week is Chicago Bridge & Iron (CBI), partly due to its chart (some recent high-volume buying suggests good support on any weakness) and partly due to the ongoing boom in oil and gas infrastructure.

Stock Name	Price	Buy Range	Loss Limit
AG (AG)	0.00	54-57	-
BIDZ (BIDZ)	0.00	14-17	-
BUCY (BUCY)	0.00	80-84	-
CBI (CBI)	0.00	48-52	-
CNX (CNX)	0.00	52-55	-
FLS (FLS)	0.00	86-93	-
FSLR (FSLR)	0.00	190-210	-
MA (MA)	0.00	175-185	-
STP (STP)	0.00	60-65	-
UTHR (UTHR)	0.00	90-100	-