March 7, 2022

 

Near-term Market Forecast: The market environment is unfavorable for appreciation of these stocks in the weeks ahead.

The Ukraine situation grew much worse over the past week and commodity prices soared as a result of the invasion and the resulting sanctions.  The market averages sold off with the Nasdaq down about 6.5% while the S&P 500 lost over 4%.  The S&P 500 confirmed a bearish head-and-shoulders pattern with a technical target of about 13% below where the index closed today.  Its been about the worst start to a new year in market history thusfar in 2022.  The Nasdaq is now in bear market territory and closed more than 20% off the highs.  Economic estimates are starting to fall as oil soared to $130 a barrel earlier today.  Coal has doubled in price in about a week.  The CRB commodity index, a broader index of commodities, is up about 15% over the past week.  The VIX volatility index soared to near 40 over the past week and is testing the top of its 1.5 year range as the market trends strongly lower.  The 2/10 year yield curve continues to flatten and closed today at .2.  This is getting closer to an inversion.  Oil soared through the top of its long-term channel and had another strong day today.  The Fed will start raising interest rates next week and lay out their plan for the balance sheet.  The press conference after the release next Wednesday will be interesting.  The strategy is calling for holding the following 3 stocks until the next update:

 

This Weeks Stocks:

This week we have 3 new stocks.  So, to follow the system, you would sell AMD, RIO and LPX and use the proceeds to purchase equal dollar amounts of ROCC, SBSW and TSN.  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 – TSN

Optional Protective Stop-loss Point: $75.89 (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 – ROCC

Optional Protective Stop-loss Point: $28.23

Stock #3 – SBSW

Optional Protective Stop-loss Point: $16.23

The strategy had a rough week led by AMD and LPX.  It was down about 9% while the Nasdaq gave up about 6.5% and the S&P 500 over 4%.  Typically the strategy draws down about 1.5 to 2.5 times the overall market as can be seen on the long-term performance chart with positive anomalies over the past couple years or so prior to this latest market correction.

 

 

 

Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com