March 28, 2022
Near-term Market Forecast: The market environment is favorable for appreciation of these stocks in the weeks ahead.
Despite more talk about half point rate hikes again late last week, the market is holding its levels after the bullish market signal the week prior. A good sign. Also, the VIX volatility index is falling and closed today below 20 as hopes grow for some kind of cease fire agreement in Ukraine. At the same time, factory lockdowns are now in place in China which only adds to inflationary pressures. Estimates are holding up so far for Q1 S&P 500 earnings but the results, commentary and outlooks from management could be market moving. The price of oil has fallen into a consolidation while the ten year treasury yield continues to surge higher. It closed today at 2.477% with the 3 month to 10 year yield curve expanding nicely while the 2 to 10 year curve flattening to just .11. The 3 month to 5 year and 10 year curve may be most important as it helps to determine bank earnings and ability to lend. In any case, the market indices have confirmed a new market uptrend for now. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell XOM and use the proceeds to purchase GOOGL. 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 – GOOGL
Optional Protective Stop-loss Point: $2,298 (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 – BLDR
Optional Protective Stop-loss Point: $55.94
Stock #3 – COST
Optional Protective Stop-loss Point: $464.49
Both XOM and COST made some gains while BLDR pulled back about 9% to test the 150 day moving average. Overall it was a down week while the S&P 500 made small gains. Its still the worst start of a new year since launching the service nearly 10 years ago. The good news is that the market is now trending higher into Q1 earnings season starting in about 3 weeks.
Brian C Neall
Founder – Investtobefree.com