“An investment in knowledge pays the most interest.”    Benjamin Franklin

Market on Tilt:

• Has the market tripped a circuit breaker? The excessive attention paid to a handful of companies seems more extreme than the heatwave. It is a great time to raise cash and/or lower your upside expectations.
• The number of new 52-week lows is increasing and the advance/decline line on Nasdaq is at a 52-week low, despite the index recently hitting an all-time high. This is sending out warning signals to every astute market technician.
• The pool of high ranking Magnet and FACTS stocks remains shallow.
• Create a buy list, be patient, and then try to buy the list at 15-20% discount within a few months. 

Economic data and market clues: 

It is a busy week for economic data, but a light week on earnings.

The data will continue to highlight the resilience of the consumer, subsiding inflation and growing hopes of interest rate cuts.

Look for some big promises at the Presidential debate that should benefit the construction, housing, and solar sectors.

Reduce Risk:

I am seeing several of our highest rated Magnet® stocks looking tired. This is a signal to focus on risk, and I suggest you do so as well. While I continue to participate in this market, I have shared several warnings over the past few months that the last 5% of a bull market is the most difficult. I have continued to buy the dips and trim over-bought portfolio holdings. 

Avoid Bad Market Behavior:

• Do not average down on losing positions
• Do not chase winning stocks
• Do not buy “story stocks” 
• Use stop losses even on winning ideas.

Current holdings:

Magnet®:

Leonardo DRS

Celestica CLS

Mr. Cooper Group COOP

FACTS:

Amazon AMZN

BlackRock BLK

Arch Capital Group ACGL

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