December 6, 2021
Near-term Market Forecast: The market environment is unfavorable for appreciation of these stocks in the weeks ahead.
The small cap Russell 2000 index continued to lead the market lower last week and was about 12% off the highs as of the close on Friday. Solidly in correction territory. Meanwhile, the Nasdaq pulled back about 8% from the highs to the lows this morning. The S&P 500 only pulled back about 5% from high to low. So large caps are only experiencing a pullback so far ahead of the important Fed press conference and statements next Wednesday along with more news on the likely impact of the new variant in the weeks ahead. The VIX volatility index soared over 30 last week as the Fed reiterated a more hawkish stance even with the risk of the new variant. The direction of the ten-year treasury yield is looking more neutral at this point as investors clamor to sell poor performing stocks in 2021 for tax loss harvesting. The next week is often weak for swing trading but the back half of December is usually strong. Perhaps the recent news accelerated the pullback to form a low earlier this year. In either case, the strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell NTR use the proceeds to purchase BLDR. 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: $898.99 (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 – GOOGL
Optional Protective Stop-loss Point: $2395.90
Stock #3 – BLDR
Optional Protective Stop-loss Point: $57.89
Another rough week with the strategy slipping over 3% as the S&P 500 lost about 1.5%. TSLA got hit with some sudden news but has completed an A-B-C down pattern into the 50 day moving average. Lets see if we get the typical Santa Claus rally starting in a week or two when the strategy normally does very well.
Brian C Neall
Founder – Investtobefree.com