100% Buys - Just Do Something
The strong buy signals sent on Dec 28th 2022 yielded a 19% return in under a month
On December 28, 2022, the broad markets were mostly lower with the S&P off -0.4% and the tech heavy NASDAQ off -1.4%. The Dow was slightly positive up 0.1%. Consumer Discretionary was the weakest sector off -1.6% followed by Technology off -1.0%. The fear gauge CBOE Volatility Index (VIX) was up 3.74% to 21.65.
“Risk Off” published 11 Buys at 100% following the December 28 close. As of January 20, 2023, all 11 positions were higher with highly volatile ETHE leading the way up a whopping 80.5%, followed by PTON up 36.7%, and NVAX and ABNB up 18.8% each.
Leaving out the highly volatile ETHE and allocating $500 to each remaining security would have yielded a current market value of $5676 for an unrealized return of 13.5% as of the market close on January 20, 2023. If you included ETHE, the unrealized return would be over 19%.
Wondering what the little red warning flag is to the left of the 100%? It’s there to remind you that, while a buy signal of 100% is telling you to go “all in” with available cash allocated for the specific investment because of a significant decline in the underlying price of the security; however, individual securities can have significant downdrafts approaching 90% or more. Therefore, we are advising to be cautious and do some additional investigation before committing funds.
The hardest time to buy is when fear is running high, and the hardest time to sell is when greed is running high. Most active traders are looking at trends or a multitude of technical charts trying to ascertain the future direction of a security. While these technical tools can provide a host of information, from time to time, the outcome does not play out as expected. DynaLogic doesn’t try to predict the future, it prepares you for the future.