January 25, 2021
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
Large caps got a boost last week due to a FAANG relief rally after underperforming earlier in the year. Meanwhile, the small cap Russell 2000 went mostly sideways over the past week. Fourth quarter earnings season continues to be much better than expected and Q1 estimates continue to rise. The banking index has pulled back along with the ten-year treasury yield to 1.04%. The NYSE advance/decline line is in a narrow consolidation just below the highs. The yield curve has narrowed has narrowed some more but continues to be significantly wider than a few months ago. The VIX volatility index continues to have half-hearted spikes and lower highs more-or-less over the past few months. However, the 20 level continues to hold as support which is well above the long-term average. 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 2 new stocks. So, to follow the system, you would sell COHU and TTGT and use the proceeds to purchase equal dollar amounts of SHOP and CROX. 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 – SHOP
Optional Protective Stop-loss Point: $948.90 (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 – MODV
Optional Protective Stop-loss Point: $112.84
Stock #3 – CROX
Optional Protective Stop-loss Point: $58.39
A decent week that about matched the overall market with TTGT and MODV making gains and a pullback from COHU. Its another real nice start to a new year.
The performance tracker page was updated a week ago so you can compare your entries and exits with what you should be getting on your fills.
Brian C Neall
Founder – Investtobefree.com