Risk Off - Weekly "Signals" Email - 5/30/23
Broad markets closed out the week on a strong note but left the Dow still in negative territory. NASDAQ was the big winner up 3.5%. Treasuries were substantially weaker as was gold.
Weekly Signal Summary (Sells)
Our Sell technology is designed to sell into strength, usually resulting in the underlying security continuing to move higher after the sell. While our sell signals are relatively small, they compound over time and protect you against risk to the downside, while also freeing up capital to allocate for pullbacks or invest elsewhere.
This week we sent 13 sell signals which had a price move of greater than 2%, and of these, 5 were lower on the week with Upstart Holdings (UPST) down -10% and DraftKing (DKNG) down -7%.
Weekly Signal Summary (Add/Initiate)
Add/Initiate- Of the trades in excess of 2%, 64% showed a positive outcome, moving higher since the signal was sent with Intel (INTC) and Zoom Video the biggest movers up 5.8%.
Market Mover- NVIDIA Corporation (NVDA)
NVIDIA was the big market mover for the week posting strong earnings and forward guidance that was way above market expectations. The stock was up almost 25% after hours on Wednesday and Thursday. Artificial Intelligence (AI) got all the buzz last week and NVDA, expected to be a big player, captured the bulk of the attention.
NVDA hit a market low on December 28, 2022 at $140.36 and DynaLogic issued a buy signal on that day. If you had invested $10,000 on December 28 your holding would be worth $27,747 today. If on the other hand you had followed the DynaLogic sell signals and used the proceeds to buy the S&P 500 ETF (SPY) to diversify the holding you would reduced your concentration from 100% NVDA to 75% NVDA and 25% SPY and a combined market value of $24,535. “Concentration creates wealth and diversification preserves wealth”.
The DynaLogic overlay platform provides signals to be used on stocks you already own or are interested in purchasing. Unlike other services, we don’t attempt to recommend stocks or predict what future prices will be. Our Add/Initiate and Sell signals are based solely on historical price movement and pre-established price targets.
We help you know WHEN TO SELL and WHEN TO ADD to the stocks you own or are considering for purchase.
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Too often in investing, we get caught up in all the noise and daily chatter and want to follow the crowd because of FOMO (Fear of Missing Out), only to realize we were only responding to our emotions and not examining the underlying opportunity.
DynaLogic asks a different question, “Should I be adding to a position that is is declining in price or reducing my position in a security that has moved higher in price. In other words, “Should I be buying when others are selling, and selling when others are buying”.
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