December 14, 2020
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The market pulled back last week from the recent highs with the Nasdaq pulling back about 3% and the S&P 500 coming down a little less than that. Volume continues to shrink on the Nasdaq while it remains near the 20 and 30 day average on the S&P 500. The Nasdaq is up about 3% above the gap right after the vaccine announcement in November. The S&P 500 is up a little less than that. You often see a pullback early in the month of December followed by a rally during the back half of the month. However, vaccine certainty could give way to political uncertainty as a new congress and administration are just around the corner after an election. The NYSE advance/decline pulled back a bit over the past week but continues to be in a long-term uptrend. The ten-year treasury yield has not been able to get above 1% and more aggressive lockdown measures could further a move into bonds. After dipping below 20 briefly earlier in the month, the VIX volatility index is moving higher again as virus cases mushroom and more lockdown measures are implemented. However the strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell FLGT and use the proceeds to purchase DE. 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 – TSLA
Optional Protective Stop-loss Point: $328.69 (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 – DE
Optional Protective Stop-loss Point: $199.79
Stock #3 – TTD
Optional Protective Stop-loss Point: $698.90
The strategy about matched the market last week with TTD gaining nearly 1% from the entry point taught in the getting started video. TSLA was about flat and FLGT was down over 2% after getting off to a great start. The S&P 500 was down about 1%.
Its been another great year for the strategy and we usually get a nice santa rally from here until the end of the year. However, new lockdowns in major cities and political changes could curtail an end of year rally. At least until early next year as a high savings rate and earlier stimulus takes full affect which usually is about a year after the stimulus.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com