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Steel stocks are surging today, most likely triggered by the unfortunate news of corruption at Kobe Steel. The Cabot Undervalued Stocks Advisor portfolios currently hold two steel stocks.

It’s a bull market, and thus you should remain mostly bullish. Given the rally of the past couple of weeks, trying to sharp shoot some entries on pullbacks probably makes sense, but you should also be holding your strong performers and remaining heavily invested.

Notice that the S&P 500 has a very specific pattern this year: advance-rest-pullback-recover, then repeat the cycle, continuing to rise as months pass. The market just completed another advance. Therefore, odds are strong that the market’s now ready for some sideways trading.

Remain bullish, but be selective on new buys as earnings season revs up. The overall market remains in great shape, with all our market timing indicators solidly bullish. Short-term, a pullback wouldn’t be surprising, but the odds remain in favor of higher prices down the road.

One of our stocks reported third-quarter results that met Wall Street’s estimates, two stocks move from Buy to Hold, and there’s new price action on another.

One of our stocks reported results this morning that beat on revenue and slightly missed on EPS.

After yesterday’s follow-on, big-volume selling, it is certainly looking more like a market downtrend than a shakeout. By our measures, the intermediate-term trend is mostly pointed down at this point, and the broad market is very weak, with a couple hundred stocks hitting new lows each day while few hit new highs.

When share prices fall, it’s important to determine whether the situation will last for a couple of months, which can be quite normal, or for several years, which can be insufferable.

The iShares EM Fund has been jumpy, but is still well above its 50-day moving averages, keeping our Buy signal in place, if a little bruised.

Today we’re adding a managed healthcare operator to the Buy Low Opportunities Portfolio.

Two of our stocks reported strong quarterly results.

Twenty-three of our portfolio companies reported June quarter results. Among those companies, 14 reported EPS that exceeded analysts’ consensus estimates; seven of which exceeded all analysts’ estimates.

Last week, Jim Cramer did a TV segment on “broken companies” vs. “broken stocks.” His point bears repeating.

The price of one of our stocks has dropped to one-sixth of its yesterday close and is now trading around 29. The move is the result of a change in the ratio of native shares to ADR shares.

The title of our issue on Monday was “Tricky but Bullish,” and since then, things have gotten even trickier. While the Dow Industrials have grabbed the headlines by hitting 22,000 level for the first time, most growth-oriented stocks—the leaders of the rally this year—have been struggling. Indeed, the Nasdaq has seen a fair amount of high-volume selling while the Dow has been heading higher.

Updates on Vertex Pharmaceuticals (VRTX) following the July 18 breakthrough drug announcement, and Chipotle Mexican Grill (CMG), which is in the news again due to the closing of a Virginia restaurant location.

Three of our stocks reported June quarter-end earnings results. Two beat all analysts’ estimates for the quarter, and one boosted full-year revenue expectations.

Legg Mason and Total exceeded all analysts’ earnings per share (EPS) estimates and Invesco reached the highest analyst estimate. Boise Cascade fell short of the consensus estimate, although the stock broke out on the upside today.

Sellers have come out of the woodwork during the past couple of days, especially when it comes to the Nasdaq and leading growth stocks. The action isn’t overly concerning when you look at the general market, but when you look at individual stocks, the situation is a bit trickier.

The market has finally declared itself, with the major indexes moving out to new highs during the week. It looks like a real breakout from the choppy, range-bound action of the past weeks, and it’s a good reason to put more money to work.