Risk Off - Weekly "Signals" Email - 7/24/23
Broad markets were mixed for the week with the Dow and S&P higher and the Nasdaq down about 1%. Treasuries were unchanged and gold was marginally higher.
Quote of the Week
“Sometimes buying early on the way down looks like being wrong, but it isn’t”. Seth Klarman
Remember that investing is a long term game, no one can perfectly time the market. Many times we send out a sell signal and a stock continues to increase in price, that is normal and should be expected. Because we are selling small portions of a position with each sell signal, our system lets you stay invested in a position for the long term while trimming some gains that you can reallocate elsewhere. In this way, you diversify your portfolio while maintaining upside.
What’s important is continuing to follow the system, which takes emotions out of the equation, and helps lead to better outcomes in the long term, as laid out in our many case studies.
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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 posted 23 sell signals which had a price move of greater than +-1%, and of these, 21 or 83% showed a price decline after the sell signal. There were 4 or 17% that continued to move higher in price.
Weekly Signal Summary (Add/Initiate)
Add/Initiate- For the week we had 8 securities that moved greater that 1% on the week, with 75% moving higher after the Add/Initiate signal. The DynaLogic strategy is always buying into weakness so it is highly possible the underlying security will continue to decline but “Buying on Weakness” is the right strategy to follow in the long run.
Several weeks ago we published a “Just do Something” report titled “Buying When Others Are Fearful”.
In that article, we referenced a list of 49 securities we follow that had a 100% Add/Initiate signal as of 12/31/2022. As of 6/30/2023, that list of 49 securities was up 36%, even with a number of securities that were down for the year. As of 7/21/2023 the combined list, including those that were down for the year, was up a cumulative 47%. The list included the S&P 500, which is up 18.2% as of 7/21/2023. “Buy when others are fearful, sell when others are greedy”.
We help you know WHEN TO SELL and WHEN TO ADD to the stocks you own or are considering for purchase.
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.
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”.
We strive to produce valuable content for our free members but our main focus is on helping our subscribers achieve their investment goals via our signals.
Ready to test DynaLogic’s signals out for yourself? Claim your free trial.
Still on the fence? Hear from some of subscribers below.
Testimonials
The signals come through and overpower my idea of what I *think* I should do regarding my investments.
It is cold, factual and driven by data - quite the opposite of my Extroverted Feeler diagnosis by the Insights Discovery test. Actual quote: "He may jump to conclusions without gathering all the necessary information or taking the time to really understand the situation."
With work and family, taking the time to gather the necessary information about my investments is extremely difficult so I need to find my opposite personality type, "the observer" and have done so with Dynalogic. Jamie G.
After reading, then sleeping on it, then rereading, the mathematics make good sense. Thanks for saving me from my emotions 🙂 – Dale R
If you are a new subscriber, for help understanding how DynaLogic works and how to properly use our system, head to this post which contains articles on how to get started with DynaLogic and common questions.
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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.
“DynaLogic doesn’t try to predict the future, DynaLogic prepares you for the future”