January 4, 2021
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
After a small Santa rally into the end of the year, the major market indices started the new year with a thud. The Nasdaq and S&P 500 erased the gains over the past couple weeks as some investors were likely selling to put off taxes and holding off a bit on new positions until the Georgia runoff election results are known. The new leading index, the small cap Russell 2000, has now pulled back about 5% from the highs as of early today. The banking index continues to hold up well in a strong consolidation while the transports are looking weaker. The NYSE advance/decline line continues to make higher highs and higher lows. The yield curve continues to hold up a little below 1 with the ten year treasury in a bullish consolidation. The VIX volatility index pulled back over the past couple weeks but then started to surge again today. However, it stopped short of the high made in December. At least so far. We are not seeing clear signs of a bearish signal but we are watching the market closely and are due for a decent pullback here. 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 3 new stocks. So, to follow the system, you would sell INMD, AMZN and DE and use the proceeds to purchase TTGT, PRSC and COHU. 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
It was a fantastic 2020 for those who followed the instructions carefully each week.
If you were not up at least in the mid to high double digits in 2020, be sure to review all your entry/exit prices using the performance tracker and review your weekly routine. The last few months of prices in the performance tracker will be updated and published later this week.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com