October 4, 2021
Near-term Market Forecast: The market environment is modestly unfavorable for appreciation of these stocks in the weeks ahead.
The market averages continue to trend lower after the bearish signal a couple weeks ago. The Nasdaq has pulled back about 9% from high to low so far while the S&P 500 has pulled back about 6% from high to low. The small cap Russell 2000 continues to in its 8 month consolidation – just below the center point of the consolidation so far and about 5.5% below the highs as measured by the IWM etf. The VIX volatility index is consolidating in the low 20s and is above a normal range. The ten-year treasury yield surged to nearly 1.57% last week and pulled back to about 1.481% at the close today. The CRB commodity index is surging into 52-week highs along with natural gas, coal and oil. Earnings season kicks off late next week with the banks reporting first as always. 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 AMD and NTR and use the proceeds to purchase equal dollar amounts of TSLA and CNQ. 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 – GOOGL
Optional Protective Stop-loss Point: $2274.00 (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 – TSLA
Optional Protective Stop-loss Point: $619.32
Stock #3 – CNQ
Optional Protective Stop-loss Point: $29.96
The week started with a gap lower on KLAC. While NTR gained about 3% since last Monday evening, both GOOGL and AMD gave up about 5%. Overall, the strategy was down over 3.5% while the S&P 500 gave up about 3.5% as well.
If the strategy can about match the market on the way down, it sets us up nicely for the next market uptrend where the strategy usually does very well.
Brian C Neall
Founder – Investtobefree.com
email: info@investtobefree.com