June 1, 2020
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
All the major indices made some more gains over the past week led by the Nasdaq. The S&P 500 is holding up nicely in a narrow consolidation over the 3000 level while the Nasdaq is only about 3% below the all-time highs. The small cap Russell 2000 lagged over the past week but has already retraced more than 61.8% of the pandemic losses. A good sign. The yield on the ten-year treasury continues to sag and is below the .7% level as the yield curve is steady, flat but still positive as the rally in banks gains some traction. The price of oil is still in the mid $30s in a narrow consolidation and looks ready to move higher. The VIX volatility index continues to trend lower and is still finding support near the top of the prior multi-year range it broke out of just before the pandemic hit hard. The NYSE advance/decline line continues to trend nicely higher and is nearing the highs. The market uptrend is still in place, albeit volatile, and 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 MTCH and use the proceeds to purchase VRTX. 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 – DBX
Optional Protective Stop-loss Point: $18.24 (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 – VRTX
Optional Protective Stop-loss Point: $224.70
Stock #3 – IPHI
Optional Protective Stop-loss Point: $94.80
The week started with a gap lower but this also offered better prices for the stocks coming on the list. The following four days were solid with all 3 stocks up over 4%. The 3 stocks were led by MTCH which was up over 8% from the entry point taught in the getting started video. Overall, the strategy regained the prior losses and is back into new highs for those following the instructions each week.
A great complement to the 3 Stocks to Wealth strategy is the high tight flag course on tradetobefree.com. Its the most bullish technical setup and can really add to your profits over the years. Its our favorite technical trade to use right now as an adjunct to this strategy in our own accounts.
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Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com