April 18, 2022
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The market continued to trend lower overall after the latest Fed further hawkish pivot and the ten year yield breaking above 52-week highs once again. The S&P 500 was down about a half percent and the Nasdaq looks poised to test the March lows in the days or weeks ahead. It will be interesting to see if we find support or fall through the lows during earnings season which heats up this week. CPI and PPI numbers were quite high again helping to push up bond yields. Meanwhile, many commodity prices continue to surge much higher including fertilizer and natural gas. The price of oil looks poised to move higher out of its consolidation. The ten-year yield is at 2.862% and looks ready to test the 3% or 3.25% level. The yield curves continue to expand. Earnings season starts in earnest this week while multiple Fed governors will make statements. One Fed governor alluded to the possibility that the Fed has now fully disclosed their plans for balance sheet contraction and rate hikes over the next year. Hopefully this will lead to a rally later this week with better than expected earnings reports. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have no new stocks. So, to follow the system, you would do nothing. 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 – GOOGL
Optional Protective Stop-loss Point: $2,298 (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 – OXY
Optional Protective Stop-loss Point: $46.93
Stock #3 – COST
Optional Protective Stop-loss Point: $464.49
Slight losses in GOOGL and COST were more than made up with gains from OXY as commodity-related stocks remain in a strong uptrend. Its still the worst start of a new year since launching the service nearly 10 years ago with one of the worst starts for the overall market averages in the modern era and especially the Nasdaq. Perhaps this will be “one of those years” for stocks and bonds as inflation remains high and the Fed tries to bring it down with a lot of rate hikes and balance sheet contraction while bond yields continue to rise. The likes of which we have not seen in decades.
Brian C Neall
Founder – Investtobefree.com