January 24, 2022
Near-term Market Forecast: The market environment is unfavorable for appreciation of these stocks in the weeks ahead.
The market got clocked over the past week with the Russell 2000 breaking a key support and was down over 20% from the highs early today before a rebound. The Nasdaq was down nearly 19% from the intraday all-time high this morning and the S&P 500 has now seen about a 12% drop from intraday high to the low this morning. The first month in 2022 has been one of the worst starts for the market in history thusfar. The VIX volatility index soared to nearly 40 by this morning before a severely oversold bounce started in the late morning. The ten-year yield pulled back some more as money fled to bonds. It closed today at 1.735%. The 3 month/10 year yield curve contracted a bit but is still over 1.5. We continue to expect volatility as the Fed takes center stage this week along with some key earnings reports. Reactions to good earnings has been poor so far this quarter but we have started a strongly oversold bounce. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have 3 new stock. So, to follow the system, you would sell TSLA, GOOGL and BG and use the proceeds to purchase equal dollar amounts of JBHT, CBZ and RGP. 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 – JBHT
Optional Protective Stop-loss Point: $177.79 (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 – CBZ
Optional Protective Stop-loss Point: $31.96
Stock #3 – RGP
Optional Protective Stop-loss Point: $14.21
Its been the worst start for the strategy since launching the service nearly 10 years ago and one of the worst start for stocks in market history. They often go hand-in-hand. The Nasdaq was down over 4% over the past week while the S&P 500 gave up another 3.5%+. The strategy lost over 6%. Its typical for the strategy to underperform during market sell-offs as can be seen on the performance chart.
The market was severely oversold on a short-term basis and started to bounce later today. We can expect more volatility in the weeks ahead but the strategy tends to significantly outperform once the market bottoms.
Brian C Neall
Founder – Investtobefree.com