April 20, 2020
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The Nasdaq and S&P 500 have now retraced over half the losses from the February highs. Meanwhile, the small cap Russell 2000 has only retraced about 40% of the losses. The Nasdaq retraced about 65% which is a good sign for later this year. The market continues to look past the terrible economic numbers for the strong rebound expected later this year. The bullish confirmation signal has held thusfar but volatility should increase again as we head into the meat of earnings season. Oil continues to be in the dumpster and companies are literally paying people to take it off their hands. A plan to restart various parts of the economy has been outlined and we should start to see this take place gradually in the weeks ahead in different states which could lead to a steady stream of better news. The strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have 3 new stocks. So, to follow the system, you would sell DXCM, AMZN and NFLX and use the proceeds to buy an equal dollar amount of QDEL, TDOC and FVRR. 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 – QDEL
Optional Protective Stop-loss Point: $85.90 (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 – TDOC
Optional Protective Stop-loss Point: $143.90
Stock #3 – FVRR
Optional Protective Stop-loss Point: $28.40
It was quite an 8 year anniversary party last week with one of the best weeks ever for the 3 Stocks to Wealth strategy. NFLX was up about 12%, AMZN was up about 14% and DXCM was up about 12% as well. Meanwhile, the S&P 500 was up about 2% since the close last Monday evening.
Brian C Neall
Founder – Investtobefree.com