November 8, 2021
Near-term Market Forecast: The market environment is favorable for appreciation of these stocks in the weeks ahead.
After the S&P 500 powered nearly 4% into new highs, the small cap Russell 2000 finally broke out of its 8+ month range last week and is already more than 4% above the prior high. A nice break out with decent volume. The large cap S&P 500 moved up another 2% or so while the ten-year treasury yield fell and closed today a little below 1.5%. The NYSE advance/decline continues to move into new highs which is positive as well. The VIX volatility index continues to be subdued and closed today at 17.22. Well within a more normal range. We should see more volatility as we continue to move through the rest of earnings season and the indices are stretched from moving averages on a short-term basis. The strategy is calling for holding the following 3 stocks until the next update:
This Weeks Stocks:
This week we have one new stock. So, to follow the system, you would sell GS and use the proceeds to purchase GOOGL. 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 – SM
Optional Protective Stop-loss Point: $25.89 (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 – CROX
Optional Protective Stop-loss Point: $123.84
The strategy continues its nice run with another 2.5%+ for the portfolio over the past week since last Monday. A big run over the past several weeks. The strategy just edged out the S&P 500 this past week. Its shaping up to be another great year for the strategy.
Again, the strategy usually does very well in November and late December.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com