Blog Archives

Positive Bounce in the Market

September 17, 2014
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The major indexes–S&P 500, Dow Jones Industrials and the Nasdaq–all made nice bounces today, with varying results. The Dow, which had held up better during the past three weeks, wound up near new highs. The S&P made up about half of its two-week correction. The Nasdaq, which had taken the biggest hit, rose to its 25-day moving average, but has more work to do. In general, the major indexes are on top of their moving averages, so the intermediate trend of the market is still up. But there has been a lot of volatility in the past couple of...

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The Bull Market Rolls On…

July 1, 2014
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The bull market rolls on, so I continue to recommend heavy investment in growth stocks. However, particularly after this strong advance, you should take care to buy at attractive entry points, like dips to support levels or moving averages. Also important is cutting losses; if a stock you own has not been rising in the broad advance of recent weeks, you should think seriously about cutting it loose and replacing it with a better performer. For value investors, the mantra remains the same as always. Buy below the stock’s Maximum Buy Price and sell when it’s above the Minimum...

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Positive Trends

June 3, 2014
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Market Update: Trends are positive, so growth-oriented investors should continue to put money into stocks, favoring charts with high upside potential. It’s also a good time to average up on stocks in which you have a decent profit and that are acting well. By Timothy Lutts, Chief Analyst, Cabot Stock of the Month

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Market’s Main Trend

March 4, 2014
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Today’s broad powerful rally reminds us the market’ s main trend remains up, regardless of the world’s troubles. So you should continue to invest in leading growth stocks, taking care, as always, to prune those that are not living up to expectations. For value stocks, all you need do is buy when a stock is under its Maximum Buy Price and sell when it’s over its Minimum Sell Price.

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Market Update 12/10/13

December 10, 2013
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By Timothy Lutts, Analyst, Cabot Stock of the Month The big bull market of 2013 rolls on, driven by growing inflows into the market as well as increased focus on the market leaders. Behind the scenes, the broad market is slowly weakening (which is typical of a mature bull market), but the indexes keep forging upward and leading stocks continue to attract buyers. Thus my advice to growth-oriented investors remains unchanged: Invest in companies with good growth potential whose stocks are under accumulation, as evidenced that healthy chart patterns. Value investors should do as always: Buy when stocks are...

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