For many years, the analysts at Cabot have had a running stock-picking contest that includes Paper Portfolios, a presentation from a different person each week and a prize of absolutely nothing at all. Each new member of the Wednesday Group receives a grant of $100,000 in hypothetical capital and invests it in any stocks that aren’t in the Cabot Market Letter’s Model Portfolio and that trade over a major exchange. The amount of cash in the collective portfolios was used to help calculate our sentiment indicator, and it did a good job of serving as an overbought/oversold signal when...