December 21, 2020
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
After rallying most of last week, the major market indices pulled back today. The Nasdaq continues to lead the S&P 500 as it found support at the 9 EMA today while the S&P 500 found support at the 20 EMA. Small caps continue to outperform large caps as the Russell 2000 is up the most since the November breakout and closed strongly again today after a rough start to the day. The banking index is in a strong flag formation which is a good sign. Most bull markets are led to some degree by banks. The transport index is in a narrow consolidation near the high along with the NYSE advance/decline line. The yield curve is holding up a little below 1 which is a good sign as well. 2 vaccines have been approved with more around the corner that are less costly and record stimulus continues to increase and move through the economy. The VIX volatility index started to surge early today after the relief bill was agreed upon but moderated later in the day. We could continue to see bouts of higher 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 TSLA and TTD and use the proceeds to purchase INMD and AMZN. 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 – AMZN
Optional Protective Stop-loss Point: $2,623 (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 – INMD
Optional Protective Stop-loss Point: $38.89
Another market-beating week with all 3 stocks up modestly. 2020 was another great year for the strategy and we often see more gains over the Christmas holiday.
Per the subscription terms, the next update will be in 2 weeks on January 4th. The performance chart assumes you hold the same 3 stocks until the next update during off weeks.
Brian C Neall
Founder – Investtobefree.com