November 30, 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. As Covid cases increased over the past week, the Nasdaq broke out into new highs and is sitting just above the prior 3 month consolidation. Meanwhile, the S&P 500 is just below there with a strong technical consolidation. The small cap Russell 2000 broke out again last Tuesday but has come back to where it started this time last week. Pandemic new case curves in Europe and the US are starting to look like they may be about to trend lower as more good vaccine news is released raising hope that they will track similar to what they did in the Spring. The NYSE advance/decline has stalled over the past week and may be ready to pull back a bit as the transport index is pulling back but in a strong consolidation. The ten-year treasury yield looks like its in a small double bottom in perhaps a larger bottoming pattern. However, the multi-decade trend is still lower. You often see a pullback early in December followed by a strong second half of December. The VIX volatility index continues to be near a support level and it would not be surprising to see a spike in early December however 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 ETSY and use the proceeds to purchase FLGT. 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 – FLGT
Optional Protective Stop-loss Point: $34.89
Stock #3 – AIMC
Optional Protective Stop-loss Point: $39.49
It was an enormous week for the strategy and a November to remember. The strategy was up about 14% in November with TSLA up a few percent after hours. Both TSLA and ETSY were up nearly 20% over the past week while AIMC was up as well.
Its always difficult to know exactly when the strategy will take another leg higher. However, consistency each week with the strategy has really paid off over the first 8+ years of the strategy.
Brian C Neall
Founder – Investtobefree.com