April 26, 2021
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
Nervous bond-holders continue to move money over to the S&P 500 as the index continues to be in a narrow consolidation at the highs. Meanwhile, the Nasdaq looks poised to test the highs ahead of GOOGL, FB, AMZN and other top tech companies reporting this week. It will be interesting to see if we see more selling after strong reports like we saw last quarter. The small cap Russell 2000 is clearing a key swing point below the highs and it may start to move later this week after we hear from the Fed on Wednesday. The VIX volatility index started to rebound but then faded to close back below 18 today. The NYSE advance/decline line continues to make new highs. The ten-year yield continues to stall around the 50 day moving average, around 1.57%, This is just .2 above the S&P 500 dividend yield. As some of the largest companies report this week and the Fed makes key statements, 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 2 new stocks. So, to follow the system, you would sell RH and EVR and use the proceeds to buy equal dollar amounts of LAD and LRCX. 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 – LAD
Optional Protective Stop-loss Point: $307.9
Stock #3 – LRCX
Optional Protective Stop-loss Point: $498.98
It was a good week with RH surging over 7% with some progress from RCII as well. Overall, the strategy was up about 2% while the S&P 500 was about flat.
Its always difficult to know when it will go on its next run but May and the summer are often good periods for this strategy as can be seen on the performance chart since inception.
Brian C Neall
Founder – Investtobefree.com