November 18, 2019
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The Nasdaq and S&P 500 continue to hold up a little above the prior 1.5+ year consolidation. Not a runaway breakout but the trend is higher with a stronger support now beneath the averages at this point. Meanwhile, the small cap Russell 2000 continues to be stuck in the range its been in throughout most of the year. Earnings are better than some feared but we are still looking at flat to slightly lower earnings for the S&P 500 and appreciably lower for small caps. The yield curve flattened a bit over the past week but continues to be in positive territory. The VIX volatility index continues to be near multi-year lows but due for a bounce. The major indices continue to gradually trend out of a long, choppy consolidation hoping for small caps to start catching up. The strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have 2 new stocks. So, to follow the system, you would sell RNG and VRTX and use the proceeds to purchase equal dollar amounts of CMG and EVER. If you are just starting, you would buy an equal dollar amount 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 – CMG
Optional Protective Stop-loss Point: $628.80 (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 – EVER
Optional Protective Stop-loss Point: $22.87
Stock #3 – MHO
Optional Protective Stop-loss Point: $34.70
RNG came out with a small surprise dilution early in the week and was down slightly for the week. MHO was up about 2% and VRTX had a nice week as it gained another 4% for another good week for the strategy.
Brian C Neall
Founder – Investtobefree.com