June 1, 2021
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The S&P 500 tested the highs today but then pulled back to close lower for the day and week. Meanwhile, the small cap Russell 2000 is rallying a bit towards the top of its range its been in for a few months. The Nasdaq is lagging a little further below the highs. The ten-year treasury yield continues to move sideways in a narrow range below the 52-week high. The banking index made a new 52-week high today but then closed below it. The NYSE advance/decline line continues to make higher highs which is a good sign. The vix volatility index moved lower last week and rallied today but still closed below 18 which is a good sign. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell CUBI and use the proceeds to purchase SIMO. 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 – SIMO
Optional Protective Stop-loss Point: $51.94 (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 – GOOGL
Optional Protective Stop-loss Point: $1,891.79
Stock #3 – CROX
Optional Protective Stop-loss Point: $79.89
CUBI had another great week while GOOGL and CROX were about flat. CROX got off to a great start but was re-indexed into a mid cap index and out of the small cap index. However, its still poised to move higher. Still, the 3 stocks easily beat the S&P 500.
A move into new highs for the S&P 500 would be a good sign for the market and this strategy in the weeks ahead.
Brian C Neall
Founder – Investtobefree.com