March 1, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The Nasdaq pulled back over 8% from high to low over the past couple weeks while the S&P 500 pulled back a little over 4% from high to low. After testing the prior low made last week, the Nasdaq rebounded strongly today and gained just over 3% while the small cap Russell 2000 gained 3.55%. Both the Russell and S&P 500 held up better during the pullback than the Nasdaq. The Nasdaq closed back above the 9 and 20 EMA today and looks poised to trend sideways to higher after a pullback in a bull market. After running strongly higher during the sell-off, the ten-year treasury yield has moved down from over 1.6% to close around 1.45% today. The yield curve continues to expand and is around 1.3 to 1.4. The NYSE advance/decline line briefly moved above 30 during the yield scare last week but is coming down to test the 20 support level. We could continue to see bouts of higher volatility but 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 HAFC and use the proceeds to purchase CMBM. 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 – CMBM
Optional Protective Stop-loss Point: $36.93 (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 – OVV
Optional Protective Stop-loss Point: $17.94
Stock #3 – CROX
Optional Protective Stop-loss Point: $58.39
February turned into another solid month and March has gotten off to a strong start. Over the past week, the strategy did well again led by OVV which gained about 10% from the entry point taught in the getting started video.
2021 is off to another great start as we near the 9 year anniversary of the strategy on April 12th.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com