February 22, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The Nasdaq pulled back over 4% from high to low over the past week while the S&P 500 pulled back about 2% from high to low. The uptrend in the ten-year yield continues to strengthen which is testing growth stock valuations. This continues to allow financials and commodity-related plays to outperform tech growth stocks. Small caps continue to hold up about as well as large caps after small caps outperformed over the past few months. The yield curve continues to expand which is good for bank earnings. Estimates for next quarter continue to move higher for the S&P 500 after the pandemic contraction in 2020. The NYSE advance/decline line pulled back a bit over the past week but continues to be just below the highs. The VIX volatility index is starting to rebound off the 20 support level as the Nasdaq gave up 2.46% today. 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 1 new stock. So, to follow the system, you would sell QRVO and use the proceeds to purchase OVV. 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 – HAFC
Optional Protective Stop-loss Point: $12.69 (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 – OVV
Optional Protective Stop-loss Point: $17.94
Stock #3 – CROX
Optional Protective Stop-loss Point: $58.39
After a gap lower for SHOP and FLGT, the strategy did well during the remainder of the week. It was up about 2% as the S&P 500 lost about 1%.
Currently the TC2000 chart widget functionality is down. If they come back up later this week, we’ll update the charts for this week. Until then, you can click the links above to see the latest charts in stockcharts.com.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com