Excerpt from MarketWatch
Bulls on the move but lacking targets
By Peter Brimelow, MarketWatch 10/27/11
NEW YORK (MarketWatch) -- There are still bears, but top-performing letters are looking for buys.
[Dennis Slothower of Stealth Stocks Daily Alert has written that the market signs are gins are still mixed and caution is warranted.]
Which is strikingly similar to another service with a strong record, the Cabot Market Letter. (See Sept. 29 column)
Cabot is happy that its indicators have turned bullish, but writes:
“From a bottoms-up stock-picking perspective, the picture is far cloudier. The rally of the past three weeks has been led by the ‘off-the-bottom’ stocks and sectors—groups like the financials, the transports, the semiconductors and the commodities that lost 30% to 40% during the past few months, and even now are still well off their old peaks. Growth stocks that are near new highs, however, have lagged; most stocks poking their head up have been met with selling.”
Cabot dislikes “off-the-bottom stocks” because “they’re likely to meet stiff resistance in the relatively near future as all the shareholders that bought at higher prices look to unload shares.”
Cabot has just downgraded Amazon.com Inc. (AMZN) to a “hold."