July 20, 2020
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
After another sharp 6% pullback on the Nasdaq, the market averages recovered today and the Nasdaq is just beneath the highs again. Meanwhile the S&P 500 is finally breaking out of a cup with handle pattern and looks poised to make a run at the pre-pandemic highs. The small cap Russell 2000 continues to lag and is still more than 15% below the pre-pandemic highs. The S&P 500 looks poised to play some catch up perhaps in the weeks ahead. The VIX volatility index finally closed below 25 and perhaps we will be heading to a more normal level of volatility in the weeks ahead as hard hit states should start to see a decline in new cases. Also, a 2nd relief bill is likely to happen in the weeks ahead. The yield curve continues to be positive enough and relatively stable. Earnings season is starting in earnest this week so we should be seeing some extra volatility as a flurry of reports rain on the markets. 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 CMG, VRTX and CHGG and use the proceeds to buy equal dollar amounts of BMRN, ENPH and FTNT. 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 – BMRN
Optional Protective Stop-loss Point: $102.89 (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 – ENPH
Optional Protective Stop-loss Point: $49.94
Stock #3 – FTNT
Optional Protective Stop-loss Point: $105.39
Another solid 2 weeks performance with another 5% gains for those using the instructions in the getting started video. It continues to be a terrific year for the strategy and a great 8 year start.
As always, its important to be consistent each week, month and year to have a shot at the largest gains over time.
Brian C Neall
Founder – Investtobefree.com