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Today’s market meltdown is turning our Cabot Tides negative, which, following the many yellow flags in recent weeks, has us paring back some.

The market is having another ugly day, and two of our stocks (SONO and TX) that recently broke our mental stops have not shaped up post-quarter-end last Thursday.

After a sharp one-day bounce, the sellers are at it again today, with the indexes quickly diving back to Monday’s lows, bringing with them most every stock in the market

The market’s evidence has worsened some this week—our Cabot Tides are now on the fence as the broad market has softened.

Remain optimistic. Growth stocks have had a tough week, but the selling hasn’t been abnormal, few (if any) have broken down and today’s stabilization for many is a good sign.

The Model Portfolio is holding its own in this storm thus far, but we continue to pare back as needed given the selling wave.

You should remain bullish and flexible. Most of the evidence remains positive, including the trends of the major indexes and action of leading growth stocks.

With the market’s decline only intensifying today, more stocks are beginning to crack.

Over the past week, marijuana stocks have been particularly strong, with the strongest being the four leading U.S. multi-state operators that we own—and that means it’s time for another brief update on strategy.

A wave of quarterly reports in recent days means most of our companies have reported.

Just a brief update today, mainly to discuss this morning’s sharp drop in the stock that we added to the portfolio last week.

Marijuana stocks as a whole pulled back normally over the past week, but the correction may have ended yesterday, with most of the leaders still well above their 50-day moving averages—and the best have continued to hit new highs. Bottom line, the trend remains up and thus I’m keeping our portfolio fully invested.

Marijuana stocks exploded higher this morning as investors speculated that the solid Democratic federal government resulting from yesterday’s Georgia election would be favorable to this fast-growing industry.

As coronavirus matters continue to dominate the headlines and the world works toward slowly reopening, the action of marijuana stocks continues to impress—and with good reason.

Eight weeks ago as marijuana stocks topped, I began selling and taking profits and that’s worked out well. We’ve lost less than the index, as the correction took down first marijuana stocks and then all stocks. At the same time, our strongest stocks have gained.

While the broad market enjoyed a powerful upmove yesterday, the marijuana sector was even stronger, with the Marijuana Index surging 15%.

Back on August 13, when the broad market was strong and marijuana stocks were even stronger, I took partial profits in our four strongest stocks (which were also our four largest positions) because they looked very extended to the upside.

With the market down more than 30% since it peaked a month ago, it’s worth reviewing the reasons for the quick crash.

With all five states that voted on marijuana proposals last week saying “Yes,” the trend toward nationwide legalization is now clearer than ever—and marijuana investors have been acting accordingly.

Marijuana stocks as a whole remain very strong as we head into the holiday season, where trading is expected to be lighter and news announcements few. Today I have no recommended changes in our portfolio, though I do have a few updates, as well as a little advice on buying and selling.