June 13, 2022
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
A worse than expected inflation report late in the week triggered a sell off in the market and the market indices tanked more than 10% from the highs last week. The indices are now moving towards their long-term uptrend trend line support going back to 2009. The Nasdaq and S&P 500 are now less than 10% from this key support. The ten-year treasury yield surged past the 2018 highs and closed today at 3.366% with mortgage rates moving higher again as well. The Fed is leaking a 75 basis point rate hike on Wednesday and probably more rate hikes later this year than they were planning prior to the inflation numbers on Friday. Meanwhile, the price of oil is consolidating and it looks poised to rally again as the front-month contract holds the top of the prior consolidation and 52-week highs. The indices undercut their prior 2022 lows with 3500 in sight for the S&P 500 offering a pretty attractive valuation. 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 – ALB
Optional Protective Stop-loss Point: $199.49 (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 – CVX
Optional Protective Stop-loss Point: $46.93
Stock #3 – KRO
Optional Protective Stop-loss Point: $15.23
After a strong week the market tanked with the S&P 500 down 9% since last Monday evening. Meanwhile, CVX was only down about 5% and KRO was only down about 3% from the entry point taught in the getting started video. ALB was down about 13.5%. Overall, the strategy beat the S&P 500 over the past week. The market has priced in a lot more tightening in 3 days so lets see if we get a rebound later this week after a washout move sometime over the next few days.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com