November 29, 2021
Near-term Market Forecast: The market environment is unfavorable for appreciation of these stocks in the weeks ahead.
A new variant of concern recently discovered rocked the market last week with a big drop on Friday. The small cap Russell 2000 index had been drifting lower for a few weeks and led the way lower after the news last week. The Russell was in a correction as of early Friday as measured by the IWM etf but then rebounded a little and is now down 9% from the highs. Large caps are holding up much better with the S&P 500 and Nasdaq only pulling back about 4% from high to low so far. The VIX volatility index nearly reached 30 on Friday but then pulled back to close below 24 today on reassurance from vaccine manufactures that a new vaccine could be made quickly if even necessary. The NYSE advance/decline line has been pulling back to test a prior support while the ten-year treasury yield is back down to 1.53% as money ran to safety on Friday. The next 2 weeks are often weak for swing trading but the back half of December is usually strong. 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 VSTO and BG use the proceeds to purchase equal dollar amounts of TSLA and NTR. 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: $898.99 (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 – NTR
Optional Protective Stop-loss Point: $55.94
Another down period with the strategy slipping over 5% as the S&P 500 lost about 1%. The strong downturn in the Russell 2000 smaller cap index hit hard while GOOGL held up alright. The first couple weeks of December tend to be poor for the market but that is more the case during election years and down years for the market. Meanwhile, the back half of the month tends to be strong.
Brian C Neall
Founder – Investtobefree.com