December 2, 2019
Near-term Market Forecast: The market environment is modestly unfavorable for appreciation of these stocks in the weeks ahead.
The Nasdaq and S&P 500 made new highs again early during the holiday week. Then we saw a pullback on Friday and today. Early December is when you often see a pullback in the market followed by what is often a good second half of the month. Both the Nasdaq and S&P are testing the 20 EMA just below the all-time highs now. Meanwhile, the small cap Russell 2000 finally showed signs of breaking out of its 10 month range last week and is now testing the top of the now prior consolidation. The VIX volatility index surged higher today after testing the bottom of its multi-year range. The ten-year treasury yield is starting to inch higher again as the yield curves start to expand a bit. Some heavy volume selling distribution came into the market today but not enough to turn bearish. 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 MHO and EVER and use the proceeds to buy equal amounts of INCY and FLT. If you are just starting, you would buy an equal dollar amount 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 – CMG
Optional Protective Stop-loss Point: $628.80 (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 – INCY
Optional Protective Stop-loss Point: $75.90
Stock #3 – FLT
Optional Protective Stop-loss Point: $264.90
Another big week with EVER surging around another 10% higher. CMG made more gains since last Monday while MHO was down slightly. November was a terrific month for the strategy. Early December tends to see a pullback of some kind while the back half of the month is often very good. However, you never really know for sure when it will start its next leg higher so consistency is important.
Brian C Neall
Founder – Investtobefree.com