November 15, 2021
Near-term Market Forecast: The market environment is favorable for appreciation of these stocks in the weeks ahead.
A strong inflation number triggered a quick pullback in the market early last week. The Nasdaq and small cap Russell 2000 came down about 3% from the highs but then regained some traction over the past few trading days. The S&P 500 pulled back over 2% and all 3 indices have not breached the highs since the sharp pullback despite recovering some of the losses. The NYSE advance/decline line has been moving mostly sideways again a little below the highs. The VIX volatility index never broke 20 despite the sharp pullback early last week. It continues to be in a more normal range as earnings season wraps up more or less and we head into a seasonally strong time of the year for stocks. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have 2 new stocks. So, to follow the system, you would sell SM and CROX use the proceeds to purchase equal dollar amounts of VSTO and BG. 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 – VSTO
Optional Protective Stop-loss Point: $38.94 (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 – GOOGL
Optional Protective Stop-loss Point: $2395.90
Stock #3 – BG
Optional Protective Stop-loss Point: $77.89
Finally, a down week for the strategy with the portfolio down a little over 2% since last Monday evening while the S&P 500 was down about a half percent. Perhaps the strong run is over for now. Then again, perhaps not as the last 2 weeks of November tend to be good ones for the market and this strategy as can be seen on the long-term performance chart.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com