This week we have a stock market forecast for the week of 3/6/2022 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!
The S&P 500 (SPY)
Not a lot of clarity out there after a week of post-invasion and a state of the union speech!
There are a lot of cross-currents out there right now, and the risk just isn't worth the reward, in my view.
I'll plan to sit tight in SPY again and deploy a little risk into a new trade as I wait for more substantial clarity to show itself.
Costco has enjoyed a major rally over the last year or so, coming off its lows near $320 per share to top out near $570 per share.
There are a lot of profits to be taken in this stock, and the lower high that is forming will be a trigger event that should produce some substantial downside, as long as the price stays under the $550 per share level.
I had a lot of stocks offering setups this week but passed on all but this one because the risk is so small vs. the reward potential. I'm willing to be aggressive and risk a stop out if I think the trade can deliver $3 or more for every $1 I put at risk.
iShares Silver Trust (SLV)
I was on the fence about keeping my SLV position vs. exiting and stalking a re-entry. However, the strength in both gold and silver this week gives me the confidence to stay in and let this run.
There's not a lot to add; the trade plan remains valid, so it's time to see some trend!
To Learn How To Accurately and Consistently Forecast Market Prices Just Like Me, Using Market Vulnerability Analysis™, visit Market Forecasting Academy for the Free 5 Day Market Forecasting Primer.
Check back to see my next post!
Market Forecasting Academy
About Bo Yoder:
Beginning his full-time trading career in 1997, Bo is a professional trader, partner at Market Forecasting Academy, developer of The Myalolipsis Technique, two-time author, and consultant to the financial industry on matters of market analysis and edge optimization.
Bo has been a featured speaker internationally for decades and has developed a reputation for trading live in front of an audience as a real-time example of what it is like to trade for a living.
In addition to his two books for McGraw-Hill, Mastering Futures Trading and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as TheStreet.com, Technical Analysis of Stocks & Commodities, Trader's, Active Trader Magazine and Forbes to name a few.
Bo currently spends his time with his wife and son in the great state of Maine, where he trades, researches behavioral economics & neuropsychology, and is an enthusiastic sailboat racer.
He has an MBA from The Boston University School of Management.
Disclosure: This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation for their opinion.