November 1, 2021
Near-term Market Forecast: The market environment is favorable for appreciation of these stocks in the weeks ahead.
The Nasdaq reached new highs last week after the S&P 500 led the way into highs the week prior. Today we saw the small cap Russell 2000, as measured by the IWM etf, surge and close above its 8+ month range. The NYSE advance/decline line is also breaking out of its 4 month range to the upside. Another good sign. The VIX volatility index started to move higher later last week but then retreated again over the past 3 trading days to close today at 16.41. Well within a more normal range. Earnings and sales beats overall are not as strong as last quarter but are still running above long-term averages. More importantly, estimates for the S&P 500 as a whole continue to go higher albeit at a slower rate. We should see more volatility as we continue to move through the heart of earnings season, the Fed this Wednesday and the jobs report on Friday, however we are entering what is historically the best 3 months of the year for the market. 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 – SM
Optional Protective Stop-loss Point: $25.89 (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 – GS
Optional Protective Stop-loss Point: $349.49
Stock #3 – CROX
Optional Protective Stop-loss Point: $123.84
The strategy continues to surge into new highs. This time we had 2 stocks that moved about 9% higher from the entry point taught in the getting started video. GS lost a fraction of a percent. Overall, another 6% for the strategy as the S&P 500 gained about 1.5%. A real nice run over the past few weeks. Its shaping up to be another great year for the strategy.
As we continue through the heart of earnings season, the Fed on Wednesday and the payroll number on Friday we can expect bouts of volatility. However, between now and the end of the year the strategy usually does very well.
Brian C Neall
Founder – Investtobefree.com