February 18, 2020
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The large cap indices moved sideways in a tight range over the past week while the small cap Russell 2000 gained about 1%. All the major indices continue to consolidate just below the highs as the ten-year treasury yield continues to sag as money moves into bonds. The NYSE advance/decline line continues to look good in a strong long-term trend just below the highs. The banking index and transport index are only a few percent off the highs despite a very flat yield curve. We are seeing little distribution over the past 3 weeks which is a good sign. Earnings season continues along with the coronavirus news flow and impact. We expect more volatility in the days ahead 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 LULU and use the proceeds to buy PYPL. 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 – AMZN
Optional Protective Stop-loss Point: $1732.90 (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 – PYPL
Optional Protective Stop-loss Point: $97.90
Stock #3 – SLM
Optional Protective Stop-loss Point: $9.38
A real nice week for LULU as it rallied to reach the top of its long-term channel and gained about 4%. AMZN was about flat while SLM gained a bit.
Brian C Neall
Founder – Investtobefree.com