3 Stocks to Wealth

October 19, 2020


Near-term Market Forecast: The market environment is modestly favorable for appreciation of these stocks in the weeks ahead.

The Nasdaq pulled back a few percent last week to test the top of the prior consolidation.  The S&P 500 has pulled back about 3%.  Both major indices are near the 20 EMA and some horizontal support so we may see a bounce starting in the days ahead as futures move higher after hours.  The ten-year treasury yield is trying to gain traction and move higher despite being below a downward-sloping 200 day moving average that is curving even lower.  Despite strong earnings, the banking index is still in a rut.  The transport index is pulling back along with the NYSE advance/decline line.  However, both are in strong, longer-term uptrends.  Earnings are coming in strong so far.  However, the stocks outside of financials that we care more about are reporting in the weeks ahead.  We continue to expect bouts of higher volatility but the strategy is calling for holding positions in the 3 stocks below until the next update:


This Weeks Stocks:

This week we have 3 new stocks.  So, to follow the system, you would sell PFSI, EBS and AMZN and use the proceeds to buy equal dollar amounts of MELI, SQ and RCII.  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 – MELI

Optional Protective Stop-loss Point: $1046.88 (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 – SQ

Optional Protective Stop-loss Point: $149.84

Stock #3 – RCII

Optional Protective Stop-loss Point: $27.69

Johnson & Johnson paused their covid vaccine trial which crushed EBS the next day.  EBS was down about 13% over the past week while AMZN and PFSI about matched the Nasdaq and S&P 500.  Overall, the strategy gave up nearly all the gains from the prior week.  Its always difficult to tell when the strategy will start another run so consistency over the years is key as can be seen on the performance chart since inception.





Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com

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