Riding the Mounjaro Wave: How the Investor's Compass Navigated Eli Lilly's Surge
Discover how our DynaLogic signals helped subscribers capitalize on LLY's impressive run and manage risk along the way.
Just Do Something!
Eli Lilly (LLY) has been a standout performer in the market, largely driven by the remarkable success of its weight loss drug, Mounjaro. As the drug gained traction and showed significant benefits for weight loss, LLY's stock price soared. But how could investors navigate this rapid ascent while managing risk? Enter the Investor's Compass.
The Opportunity
On September 29, 2023, the "Investor's Compass" published an Add/Initiate signal on Eli Lilly (LLY) at the closing price of $537.13. This was a Zone 1 signal, indicating a potentially substantial upside opportunity. Additionally, while the Relative Strength Index (RSI) was not in oversold territory, it was 39.21, towards the low end of the range.
Riding the Wave
October 11, 2023 - February 16, 2024 Between October 11, 2023, and February 16, 2024, the "Investor's Compass" issued 5 Trim/Sell signals:
The first 4 were Zone 2 Trim/Sell (Upside Opportunity / Some Downside Risk)
The 5th was a Zone 3 (Increased Downside Risk / Minimal Upside)
A Timely Trim
February 16, 2024 At the time of the Zone 3 Trim/Sell signal on February 16, 2024:
LLY's price had risen from $537.13 to a closing price of $782.06
The RSI was 89.99, indicating an overbought condition
Over the next 10 days, LLY reached $792.28, up an additional 1.3%. However, just 5 days later, on March 11, 2024, the stock closed at $734.37, down -7.3%.
The Next Opportunity
March 11, 2024 On March 11, 2024, the "Investor's Compass" issued a Zone 1 Add/Initiate signal on LLY. By March 28, the stock closed at $777.96, up 5.9% from the March 11 signal.
The DynaLogic System and RSI Explained
The Investor's Compass utilizes our proprietary DynaLogic system, which analyzes price movements and trends to determine the potential risk and reward for a given security. The signals are categorized into four zones:
Zone 1: Potentially substantial upside opportunity
Zone 2: Upside opportunity with some downside risk
Zone 3: Increased downside risk with minimal upside
Zone 4: Substantial downside risk
In addition to the DynaLogic zones, we also use the Relative Strength Index (RSI), a momentum indicator that measures the speed and change of price movements. An RSI above 70 suggests an overbought condition, while an RSI below 30 indicates an oversold condition.
By combining these powerful tools, the Investor's Compass provides timely, data-driven signals to help subscribers make informed decisions about when to buy, trim, or sell their positions.
The Bottom Line
The Eli Lilly case study demonstrates the power of the Investor's Compass in helping subscribers navigate market opportunities with confidence. Our systematic, rules-based approach is designed to help you invest with clarity and conviction, maximizing potential gains while managing risk along the way.
Don't miss out on the next big opportunity. Subscribe to the Investor's Compass today and gain access to our powerful suite of tools designed to help you achieve your investment goals. Let us be your guide in the dynamic world of investing.