April 5, 2021
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The S&P 500 is leading the overall market recently as it reached new highs last week and today. The index formed a bullish pattern ahead of the breakout. Meanwhile, the Nasdaq and small cap Russell 2000 are both gaining traction after bearish technicals emerged in March. The Dow transports are breaking into new highs and nicely leading the S&P 500. The VIX volatility index is finally moderating and starting to settle in below the 20 support level and getting back into the more normal range it was in pre-pandemic. The NYSE advance/decline line continues to trend higher by making higher lows and higher highs. The ten-year yield held below 1.8% after the big jobs number on Friday so lets see if it holds below that level as it continues to consolidate in a narrow, bullish pattern. The price of oil is looking like its in a more neutral trend after a big move higher since the vaccine trial results were announced in November. The yield curve continues to look good here. As we head into earnings season next week, we could continue to see bouts of higher yields and volatility but the strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell COOP and use the proceeds to purchase EVR. If you are just starting, you would buy equal dollar amounts of all 3 stocks when the market re-opens in your risk-capital account dedicated to this system. Be sure to view the complete introductory video before getting started.
Stock #1 – RCII
Optional Protective Stop-loss Point: $46.34 (Be aware that a tighter stop-loss will likely severely reduce performance over the long-term based on back-testing for this strategy. See upgrade and performance video for further information and insight on optional stop-loss orders.)
Stock #2 – EVR
Optional Protective Stop-loss Point: $109.88
Stock #3 – RH
Optional Protective Stop-loss Point: $456.90
A disappointing holiday week for 3 good stocks with rising estimates. All 3 stocks basically went sideways as the S&P 500 made new highs as estimates move higher into first quarter earnings season for the market overall.
Brian C Neall
Founder – Investtobefree.com