June 14, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The S&P 500 closed above the prior highs last week but just barely. Meanwhile the Nasdaq and small cap Russell 2000 are rising gradually to test the high in their four month consolidation. Value stocks are pulling back a bit while tech growth stocks are rising as the ten-year treasury yield continues to sag below 1.5% ahead of the key Fed statement and press conference on Wednesday afternoon. The banking index is falling as the yield curve contracts a bit. The NYSE advance/decline line continues to make higher highs which is positive. The vix volatility index made another 52-week low today as it continues to be in a more normal range – at least ahead of the Fed statements. 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 – 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
It was another nice week led by CROX bursting into new highs and was up about 8% for the week. SIMO was down about 1% while GOOGL gained about 2% rounding out a week where the strategy beat the S&P 500 substantially as the index gained less than 1%.
Its always difficult to know when the strategy will take a leg higher but summer is often a good period for it. Again, consistency is key to long-term success.
Brian C Neall
Founder – Investtobefree.com