The broad market remains strong, and all Cabot’s market timing indicators are currently positive, so I remain optimistic that we’ll see higher prices in the month ahead and I continue to recommend that you remain heavily invested. However, it’s worth noting that the market is increasingly ripe for a pullback, and that a few of our super-strong stocks (LK and SPCE and TSLA) are also ripe for major pullbacks. In other words the market looks a bit overheated here.
Thus this week’s recommendation is a lower-risk, high-yielding chemical stock with very little downside potential. I think it will balance those higher-risk stocks nicely. Lastly, the addition of this stock means we have to sell one, and the victim this week is TopBuild (BLD).
Details in the issue.