August 30, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
After the Fed statements late in the week, the Nasdaq surged ahead and has led the S&P 500 to new highs again. The Nasdaq is up about 2% over the past week as it rallies out of its August/July consolidation. The S&P 500 was up about 1% over the past week. Despite a dovish Fed chairman, the ten-year treasury yield sagged and closed today back at 1.285%. The small cap Russell 2000 surged past the 50 day moving average on Friday and consolidated today near the Friday highs. The S&P 500 dividend yield continues to be around the ten-year treasury yield. The NYSE advance/decline line continues to move sideways causing breadth to continue to be in question. The vix volatility index moved higher in the middle of the week but then faded and closed today near 16 and continues to be in a more normal range. Perhaps we are setting up for a rally led by small caps when we see strong signs that the delta wave is receding. In any case, 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: $2274.00 (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 – FNF
Optional Protective Stop-loss Point: $39.94
Stock #3 – KLIC
Optional Protective Stop-loss Point: $51.98
A real nice week with the 3 stocks up more than 3.5% led by an 8% gain in KLIC from the entry point taught in the getting started video. GOOGL was up nicely and FNF was about flat. The S&P 500 gained about 1%.
The jobs report later this week could help move the market next week after the Labor Day Holiday. A time where many large investors are back from vacation and help to set the direction into Q3 earnings season in October.
Brian C Neall
Founder – Investtobefree.com