March 15, 2021
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
Last week we talked about how bearish market signals are often overcome if the next market rebound is strong enough. Fortunately, that was the case this time around with the Nasdaq regaining traction above the 50 day and 10 day moving averages. Both the S&P 500 and small cap Russell 2000 made new highs last week. This put us back into the bullish camp around mid-week. The ten-year treasury yield made a new 52-week high but is moving higher at a much more modest pace. The price of oil is starting to get more volatile as it completes breakouts which can be an early sign of a new consolidation starting sometime in the near future. The yield curve continues to expand as the ten-year yield is still around 1.6% although we will watching the ten-year yield as the Fed speaks later this week. Meanwhile, the NYSE advance/decline line broke into new highs last week which is a good sign. We could continue to see bouts of higher yields and 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 KFY and use the proceeds to purchase CROX. 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 – RCII
Optional Protective Stop-loss Point: $46.34 (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 – CROX
Optional Protective Stop-loss Point: $67.89
Stock #3 – COWN
Optional Protective Stop-loss Point: $27.94
After another gap lower, the strategy had a good week with COWN up about 10% from the entry point taught in the getting started video. KFY was up a few percent and RCII was up about 8%. A real nice week easily beating the S&P 500 for those using the instructions in the getting started video each week.
You never know for sure when these corrections will end and the market will trend higher again. The trend change occurs when it occurs and this strategy tends to start doing well just before then.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com