November 23, 2020
Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.
The major market averages consolidated over the past week near the highs. The S&P and Nasdaq were about flat over the past week. The consolidation pattern continues to have bullish qualities. Meanwhile, the small cap Russell 2000 continues to poke its head into new highs followed by narrow consolidations which is bullish as well. EV stocks have exploded higher over the past week or so to help lead the market. The NYSE advance/decline has moved strongly into new highs as the transport index continues to look strong near new highs. The banking index is looking stronger as well as the 50 day moving average crosses the 200 day moving average. The last week of November is usually good for the market followed by a rough early December and then a strong back half of the month. The VIX volatility index continues to be near the post-pandemic lows but still relatively high so we expect bouts of higher volatility. The strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have 1 new stock. So, to follow the system, you would sell OMF and use the proceeds to purchase ETSY. 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 – TSLA
Optional Protective Stop-loss Point: $328.69 (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 – ETSY
Optional Protective Stop-loss Point: $109.49
Stock #3 – AIMC
Optional Protective Stop-loss Point: $39.49
It was another nice week with TSLA up about 20% since last week at this time. AIMC was about flat while OMF was down about 3%. Still a big week as the S&P 500 moved sideways. Another great year for the strategy and a lot to be thankful for over the first 8+ years of this strategy. Happy Thanksgiving to all.
Brian C Neall
Founder – Investtobefree.com