December 23, 2019
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The Nasdaq and S&P 500 only pulled back the first couple days of December this year followed by a continuation of the uptrend. Both major indices continue to lead small caps but the small cap Russell 2000 is finally nearing new highs during a large earnings recession for smaller companies. More volume is coming in on the large cap indices helping the indices to defy gravity as more money flows into the market from funds. The yield curve continues to gradually steepen as the ten year treasury yield has a hard time making it to 2%. The dividend yield on the S&P 500 still about equals the ten-year yield. News of some kind of phase 1 trade deal and a lowering of some existing tariffs was good enough to not derail the rally. The NYSE advance/decline line continues to look strong along with the banking index near highs now with the transports still lagging. The market is overbought on a short-term basis but is not showing the classic signs of a large correction looming. 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 GTN and CMG and use the proceeds to buy equal dollar amounts of MA and RH. 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 – MA
Optional Protective Stop-loss Point: $249.70 (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 – NMIH
Optional Protective Stop-loss Point: $25.80
Stock #3 – RH
Optional Protective Stop-loss Point: $178.79
Last week was a good week for the 3 Stocks to Wealth strategy followed by a little bit of a pullback today. It could of been better but we got a report of the lawsuit on CMG heading into an election year. However, those using the instructions in the getting started video should take a nice profit on CMG tomorrow. Both GTN and NMIH had nice rallies though last week to lead the way.
Its been a terrific start for the 3 Stocks to Wealth strategy over its first 7.5+ years. Happy Holidays to all and looking forward to another great year in 2020. The holiday weeks are often quiet for the market and its a great time for more active traders especially to take some time off.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com