July 6, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The Nasdaq continues to hold above the prior 4 month consolidation after the breakout the week prior. Meanwhile, estimates continue to rise ahead of Q2 earnings season starting next week where very strong earnings and sales growth is expected. Well beyond 2019 levels. The S&P 500 is right behind the Nasdaq – over 2% above its prior consolidation. Small and mid-caps continue to lag with the Russell 2000 still stuck in its nearly 5 month consolidation. The IWM Russell 2000 etf is right on its 50 day moving average after pulling back over the past few days. The ten-year yield continues to drive the market as the yield breaks support and drops to 1.37% by the close today. This is helping big tech move into new highs in many cases. The NYSE advance/decline line made another new high last week and continues to look strong. The vix volatility index surged a little today but continues to be in a more normal range. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have no new stocks. So, to follow the system, you would do nothing. 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 – APPS
Optional Protective Stop-loss Point: $62.69 (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 – LEN
Optional Protective Stop-loss Point: $77.57
Stock #3 – CROX
Optional Protective Stop-loss Point: $79.89
APPS got caught in a selling downdraft on Friday but has stabilized and is poised to move higher. LEN made some gains to help things but CROX pulled back a little as well. Overall, a disappointing week as the strategy is about 4% lower for the week.
Its always difficult to know when the strategy will take a leg higher but July is often a good month for it. Again, consistency is key to long-term success.
Brian C Neall
Founder – Investtobefree.com