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The action in the second half of August was encouraging, but as has been the story of 2021, a lot of that move has been erased so far in September—and that goes for just about everything.

This is just a quick message regarding today’s action in Roblox (RBLX)—the stock had been correctly normally in recent days, but last night, it gave its May business update, and the numbers left a lot to be desired, with users actually shrinking from the prior month (though revenues were still up triple digits from the year before).

The major indexes were fine today, with the Dow up 45 points and the Nasdaq down 33 points. But that masked a horror show under the surface—the average stock we follow was off more than 2%, similar to growth-oriented indexes like the Russell 2000 Growth Index (IWO, down 2%) or the Ark Innovation Fund (ARKK, off 3.3%).

There’s still a chance earnings season could save the day, but so far, most reports have led to selling and after seeing many growth stocks set up in recent weeks, the bears are beginning to come out of the woodwork again.

The major indexes got hit today, though damage among growth stocks wasn’t too bad. At day’s end, the Dow was off 260 points while the Nasdaq slid 105 points.

Yesterday the major indexes finished mixed, with the Dow up 71 points and the Nasdaq down 78 points. But the story of the day (and the prior Friday) was a renewed rotation out of growth stocks, with most leading titles down 2% to 3% yesterday alone and a couple more cracking near-term support.

The market has been doing OK, though it’s more about addition by subtraction—the fact that growth stocks have avoided any major selling wave after the recent upmove is a plus, but we’re still seeing lots of selling on strength and rotational action that changes by the day.

Growth stocks remain very strong, and our market timing indicators remain positive, so you should remain mostly bullish. Of course, you should also keep your feet on the ground, as there’s little doubt things are fairly frothy here so some potholes could occur at any time.

The market and big-winning growth stocks from this year remain iffy—today’s drop put our Cabot Tides on the fence and many growth stocks are still in a rough patch.

Growth stocks have taken a beating so far this week as a sharp rotation is underway. Given that the Model Portfolio was 41% cash coming into this week, we’re not craving more cash, but we are making one small move tonight

Remain bullish, but don’t get too aggressive. Growth stocks and the market are still in uptrends, so we’re sticking with a heavily invested stance, but many leaders have wobbled of late, the number of stocks hitting new highs has dried up a bit and earnings reports are coming up for a ton of names.

Continue to take things on a stock-by-stock basis. We’ve seen a buyers’ strike during the past two weeks, with many stocks and indexes falling under their own weight; our Cabot Tides buy signal has vanished, with the market now nine weeks into a rest after the March-August advance.

Remain cautious. The market has thrashed around in recent days, which hasn’t changed the overall outlook—most of the market remains in decent shape, but growth stocks and the Nasdaq are mired in a correction and there’s still a chance we see another leg down. That doesn’t mean we couldn’t on something here or there for the most part we think it’s best to stay close to shore until the sellers finish their work.

Remain bullish, but continue to keep your antennae up. The Nasdaq has pushed to new highs, our trend-following indicators are positive and most leading stocks remain in uptrends, so we’re still in a bullish frame of mind.

This week is off to a good start for growth stocks—many of the names that have been acting wobbly during the past couple of weeks bounced decently yesterday and today.

The market had a very rough day yesterday, with the Dow closing up 10 points (there was some rotation into lagging areas) but the Nasdaq reversed from huge gains to finish down 227 points.

The weakness in the market and growth stocks is continuing this morning.

The market’s continued weakness has tipped our Cabot Tides to the negative side of the fence for the first time since April.

The worm continues to turn for growth stocks, which are mostly lagging (at best) or cracking uptrends (at worst) after huge runs.