3 Stocks to Wealth

January 6, 2020

 

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

The Nasdaq and S&P 500 were about flat until today since the last update.  Meanwhile, the small cap Russell 2000 was down nearly 1% over the same period.  It continues to be a market led by large caps with money searching for yield and some safety in a world with very low bond yields.  Volume was strong on the Nasdaq for a holiday period as some of the FAANG stocks trend out of consolidations.  The yield curve continues to be flat but not inverted.  The Iran news initially was met with a pullback but then a rebound today.  The NYSE advance/decline line continues to trend higher as the banking index, small caps and transports lag a bit.  Earnings season starts soon so we expect more volatility but we are not seeing the classic signs of a large correction looming.  The strategy is calling for holding positions in the 3 stocks below until the next update:

 

This Weeks Stocks:

This week we have 1 new stock.  So, to follow the system, you would sell NMIH and use the proceeds to buy TDY.  If you are just starting, you would buy an equal dollar amount 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 – MA

Optional Protective Stop-loss Point: $249.70 (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 – TDY

Optional Protective Stop-loss Point: $289.40

Stock #3 – RH

Optional Protective Stop-loss Point: $178.79

You would think that moving up from the small cap to the mid cap index would be a good thing for RH.  However, in the age of indexing, it seems to not be the case recently.  RH was moved up to the mid cap index and promptly pulled back 7%.  A disappointing couple of weeks for the strategy.  However, RH is poised to rebound over the next week and move higher with the other 2 stocks.

 

 

 

 

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

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