“Just do Something” - PLTR

Risk Off - Powered by Dynalogic

Palantir Technologies Inc. (PLTR) develops software to analyze information.  Bloomberg goes on to say the company offers solutions to support many kinds of data including structured, unstructured, relational, temporal, and geospatial.  They serve customers worldwide.

Palantir went public on September 30, 2020, with an opening price of $10.  It closed on the day at $9.50.  By the end of January 2021, PLTR was trading at $39 for a 310% increase in a little less than 4 months.  Upon further examination, from November 4, 2020, to November 30, 2020, PLTR was up 153%.  We are quite sure investors sold or reduced their exposure in PLTR during that remarkable runup, but we are equally sure there were those who didn’t, hoping they had bought the next Amazon or Apple, or Bitcoin, or not wanting to pay short term capital gains tax. On May 12, 2022, PLTR closed at $6.44. It has since rallied and of this writing was trading around $9.50 for no change from its debut.  

DynaLogic would have been publishing sell signals during the massive runup.  Let’s examine.  

There were 37 sell signals over the 20-month period.  During the almost vertical runup there were sell signals almost daily. 

For subscribers, DynaLogic publishes end of day Buy and Sell signals on a host of equity securities and publishes the next Buy and Sell signal price and the amount to invest or percentage to sell.  Investors using Good Until Cancel orders with a Limit sell price and number of shares could have entered the trade which would have made the task easy and would have eliminated any emotion.

Let’s examine two scenarios:

Original Investment- $50,000 on 9/30/2020

Scenario 1- Hold PLTR through the massive runup and subsequent decline

Beginning Value $50,000

Ending Value 6/27/22 $50,000

Scenario 2- Use the DynaLogic Sell signal overlay

Beginning Value $50,000

Proceeds from Sell Signals $59,725

Short Term Capital Gains $12,975

Long Term Capital Gains $301

Ending PLTR Value $29,510

Ending Value 6/27/22 $75,958

In hindsight it’s obvious that the massive runup warranted some de-risking; however, at the time, PLTR’s stock price was headed to the moon.  It’s hard to sell a homerun. Everybody wants to own a winner.  Maybe, just maybe, PLTR is on its next big run.  If so, DynaLogic will be there every step of the way offering guidance.  

“Risk Off” has issued the following Sell signals recently:

6/21/22 Sell .68%

6/23/22 Sell .68%

Nothing big, just something!

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(Note: DynaLogic provides to subscribers relevant and real time market movement information on a host of equity securities.  Signals (sell or buy) are based solely on mathematical changes in the price of a security.  No other methodology is used.

DynaLogic is not a registered investment advisor, and it makes no representation or recommendation concerning the purchase or sale of any security investment product; DynaLogic provides no advice or recommendation whether a subscriber should or should not act on any signal a subscriber receives, and it has no knowledge whether a subscriber, in fact, acts on a signal or any signal; DynaLogic maintains no portfolio account or other investment information on any subscriber.)