April 27, 2020
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
Both the Nasdaq and S&P 500 continue to hold up well after retracing more than half the pandemic losses from the February highs. In fact, the Nasdaq is well over a 61.8% retracement making a long-term bear market less likely. Its hard to find a long-term bear market where the first leg lower retraced more than 65%. The small cap Russell 2000 is now playing catch up but has retraced significantly less than 50% of its losses. The VIX volatility index is finally starting to reach 30 which is a good sign. The market continues to hold up well as pandemic numbers continue to come down the right side of the curve and more plans are being made to gradually re-open many industries shut down due to the virus. Industries and companies that offer products and services more needed due to the virus continue to do well as the major indices continue to break prior swing highs. 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 QDEL, TDOC and FVRR and use the proceeds to buy an equal dollar amount of DOCU, NFLX and TER. 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 – DOCU
Optional Protective Stop-loss Point: $87.40 (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 – NFLX
Optional Protective Stop-loss Point: $329.60
Stock #3 – TER
Optional Protective Stop-loss Point: $50.89
It was one of the best 2 week periods since the 3 Stocks to Wealth strategy was launched 8 years ago. QDEL soared about 30% for those using the entry strategy taught in the getting started video. FVRR was up about 5% and TDOC gained about 7%. Overall, the strategy gained another around 14% and is up more than 30% for the month of April.
Brian C Neall
Founder – Investtobefree.com