June 21, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The S&P 500 pulled back last week after a little more hawkish Fed update on Wednesday. Today, the S&P 500 rebounded strongly after it pulled back about 2.5% from the highs. Meanwhile the Nasdaq is back to just below the highs in its 4 month consolidation. The strong consolidation near the high points to a possible breakout in the days ahead as the ten-year treasury continues to be stubbornly low. The surprisingly lower rates hit the banking index as it fell sharply through the 50 day moving average but is showing early signs of recovering. The NYSE advance/decline line pulled back last week but appears to be making another higher low which is positive. The vix volatility index surged late last week after the Fed last week but came down hard again today to close back below 20 – back in a more normal range again. 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
The strategy was down about 2.5% last week and underperformed the S&P 500 which lost 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