October 14, 2019
Near-term Market Forecast: The market environment is neither favorable or unfavorable for appreciation of these stocks in the weeks ahead.
The major market averages rebounded back above the 50 day moving average over the past few days as earnings season begins with many of the big banks reporting starting tomorrow morning which could move the market. The Nasdaq and S&P 500 continue to give mixed signals as the averages are stuck in the range they have been in for over a year and a half. Meanwhile, the small cap Russell 2000 continues to be in correction territory but showed some modest bullish signs today. The ten-year yield is now rising as the yield curve is now out of inversion territory. The VIX volatility index dropped back below 15. The strategy is calling for holding positions in the 3 stocks below until the next update:
This Weeks Stocks:
This week we have one new stock. So, to follow the system, you would sell CMG and use the proceeds to purchase SCS. 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 – LULU
Optional Protective Stop-loss Point: $159.90 (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 – SCS
Optional Protective Stop-loss Point: $14.09
Stock #3 – KBH
Optional Protective Stop-loss Point: $26.40
The 3 Stocks to Wealth had a nice week with LULU carrying about 6% higher. Meanwhile, KBH was up slightly from the entry point taught in the getting started video and CMG was up about 2%.
Again, we could see volatility to the upside or downside depending on new news this week – not the least of which will be the bank executive commentary on lending and the health of the consumer during earnings conference calls starting Tuesday morning – not last Friday morning as the Zacks calendar was off a couple days on the Citigroup reporting date.
Brian C Neall
Founder – Investtobefree.com