January 19, 2021

 

Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.

Large caps pulled back last week while the Russell 2000 was up slightly for the week.  Today the Nasdaq rebounded more strongly than the Russell.  All 3 indices are just below the highs.  We still are not seeing the classic signs of an impending market correction but we are watching the market closely.  Record stimulus and experts predicting that we may be near the peak of the pandemic with better times ahead is helping to support the market along with another large stimulus package in the works.  The banking index moderated a bit over the past week along with the ten-year treasury yield.  The NYSE advance/decline line continues to make new highs.  The yield curve has narrowed a bit over the past week but continues to be significantly wider than a few months ago.   The VIX volatility index has only had a weak rebound this time off the support level near 20.  Perhaps we will finally see volatility move lower and break well below 20 in the weeks ahead.  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 no new stocks.  So, to follow the system, you would do nothing (PRSC changed their ticker symbol to MODV).  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 – TTGT

Optional Protective Stop-loss Point: $47.94 (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 – PRSC

Optional Protective Stop-loss Point: $112.84

Stock #3 – COHU

Optional Protective Stop-loss Point: $31.34

Another great week led by COHU with about an 8% gain.  The other 2 stocks were up about 4% or so.  You never know when the strategy will go on a run like this so you have to enjoy them while they last.

PRSC changed their company name and ticker symbol to MODV.  The performance tracker page has been updated so you can compare your entries and exits with what you should be getting on your fills.

 

 

 

 

Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com