December 7, 2020
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
As covid numbers continued to grow, the Nasdaq carried into new highs again. The Nasdaq is performing better for now but the S&P 500 is right behind it as it made new highs as well. Both large cap indices are only very gradually trending higher at this point. Meanwhile, the small cap Russell 2000 is making stronger moves into new highs and was up another 2% into new highs over the past couple trading days. Vaccines are already being distributed in Europe starting tomorrow and are likely to begin shipping in the US next week. The NYSE advance/decline continues to trend strongly into new highs while the transport index continues to be in a very narrow consolidation just below highs. The ten-year treasury yield nearly made it all the way to a whopping 1% before pulling back today to close at .928%. You often see the market rally starting around the 11th to 15th of December in what is affectionately called a “santa rally”. Lets see if it occurs again this year. The VIX volatility index continues to hang out near a support near 20 and it would not be surprising to see a spike sometime soon. 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 AIMC and use the proceeds to purchase TTD. 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 – FLGT
Optional Protective Stop-loss Point: $34.89
Stock #3 – TTD
Optional Protective Stop-loss Point: $698.90
It was a decent week with about 2.5% more gains while the S&P 500 was up about 1%. TSLA led the way again with more than a 10% gain from last Monday. FLGT bounced around but ended the week nicely higher from the entry point taught in the getting started video. AIMC disappointed and was down around 4%. Another nice week overall.
Its always difficult to know exactly when the strategy will take another leg higher. However, consistency each week with the strategy has really paid off over the first 8+ years of the strategy as can be seen on the performance chart.
Brian C Neall
Founder – Investtobefree.com