January 10, 2022
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The Fed suddenly signaled the intention to reduce the balance sheet this year in the FOMC minutes last week while the chance of a rate hike in March soared to 90% with now 4 rate hikes on the table. This triggered a sell-off in the market as the Nasdaq reached correction levels this morning and fell nearly 8% within 5 trading days. The S&P 500 pulled back about 5% from the recent all-time high last Tuesday to the low this morning. Meanwhile, the ten-year yield soared to break above the 52-week high and closed at 1.78% today. The yield curve expanded a bit again. Earnings season kicks off later this week which should help support the market and 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 MSFT and use the proceeds to purchase MCB. 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 – MCB
Optional Protective Stop-loss Point: $86.49 (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 – TSLA
Optional Protective Stop-loss Point: $947.90
The 3 stocks got off to a rough start and then rebounded later today but still had a tough week with the portfolio down about 6% or so. The Nasdaq sank over 5% over the same time-frame while the S&P 500 gave up about 3%.
Lets see if the market can rebound on good bank earnings later this week, a perhaps ugly CPI number, and after the Fed chairman jawbones inflation some more during the re-appointment hearings tomorrow.
Brian C Neall
Founder – Investtobefree.com