September 30, 2019
Near-term Market Forecast: The market environment is neither favorable nor unfavorable for appreciation of these stocks in the weeks ahead.
The Nasdaq continues to consolidate just above the 150 day moving average while the S&P 500 is just above the 50 day moving average. Both indices continue to be in a short-term downtrend that is more horizontal at this point. This is a good sign. However, we are heading into what could be bad news with trade, political season and earnings season. The VIX volatility index is in a large rounding bottom pattern as we head into a time of year where we often see a pullback. Large caps continue to outperform small caps during this latest pullback as all indices continue to struggle to break out of their range. 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 PFSI and use the proceeds to purchase MSFT. 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 – CMG
Optional Protective Stop-loss Point: $634.90
Stock #3 – MSFT
Optional Protective Stop-loss Point: $113.70
The 3 Stocks to Wealth about matched the overall market over the past week as the S&P 500 and Nasdaq lost about 1%. Its always difficult to say with certainty when the next rally will start for the strategy and overall market. Normally the first half or so of October is pretty shaky while the last week or so is generally pretty good. However, a trade deal or other positive news catalyst could yield different results this year.
Brian C Neall
Founder – Investtobefree.com