Risk Off - Weekly "Signals" Email - 8/28/23
Broad markets were mixed on the week, with the Nasdaq higher by 1.64%, the S&P higher by .79% and the Dow lower by -.47%. Treasuries were unchanged and gold was higher by 1.31%.
Trade of the Week
On August 25th, we hit the bullseye with a Zone 4 100% Add/Initiate Signal for Affirm Holdings, locked in at the closing price of just $13.81 on August 24th. What happened next? AFRM surged a jaw-dropping 28% in just one day!
This isn't merely a success story; it's a testament to the unparalleled power of acting on a strong signal for a stock you're either eyeing or already have in your portfolio. While we can't promise such astronomical returns every single time, this is a prime example of the opportunities you might miss if you're not tuned in to our invaluable signals.
So, don't just watch from the sidelines—join the action. Trust our system and let us guide you toward opportunities like this, because as you can see, the results can be staggering!
Quote of the Week
"Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble." — Warren Buffett
Market Pulse
Fed Policy
Balanced Hawkishness: Last year, Jerome Powell crushed hopes for a quick end to rate hikes. This year, his speech was hawkish but nuanced, signaling a possible end to the tightening cycle.
Inflation Target: The Fed remains committed to its 2% inflation target and is prepared to raise rates further if required.
Rate Peak: There are indications that policy rates may be reaching a peak, considering economic resilience and slowing inflation.
Economic Conditions
Growth: The economy is proving more resilient than expected, with a strong labor market and consumer spending.
Downside Risks: However, credit conditions are tightening, and the rate hikes may still have long-term impacts.
Data Trends: Economic indicators, including the Atlanta Fed's real-time GDP forecast, now suggest stronger than expected growth for Q3 2023.
Financial Markets
Economic Resilience: After a 25% decline post last year's Jackson Hole meeting, markets have recovered over 20%, signaling increased confidence in a soft landing.
Bonds: Bonds remain under pressure, but higher interest rates are now cushioning the decline in bond prices.
Earnings Recovery: Forward 12-month estimates for corporate profits are recovering, suggesting the earnings downturn may be ending.
Investment Landscape
Valuations: Stock market gains are likely to slow down given the currently high valuations unless earnings keep up.
Volatility: Historical patterns suggest that market volatility may increase in the coming months.
Investment Strategy: Dollar-cost averaging and diversification into under-valued equity sectors and long-term bonds are recommended.
Future Outlook
The market ends the summer on stronger footing than last year, bolstered by a more balanced Fed message, robust economic data, and recovering earnings. However, some uncertainties remain, particularly around how the Fed will combat the final stages of inflation.
Weekly Signal Summary (Sells)
This week we posted 5 sell signals which had a price move of greater than +-1.5%, and of these, 4 or 80% decreased in price after the sell signal.
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.
Weekly Signal Summary (Add/Initiate) “Buy”
For the week we had 19 securities that moved greater that +-1.5% on the week, with 15 or 79% 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; however, we feel “Buying on Weakness” is the right strategy to follow in the long run, even if it doesn’t pan out in every instance (no strategy does).
The DynaLogic signals help you know WHEN TO SELL and WHEN TO ADD to the stocks you own or are considering for purchase. 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.
In Case You Missed It
Investing Requires a Disciplined Process
Wondering how to transform your portfolio into a resilient asset? Our latest article outlines how DynaLogic's unique toolset can empower your investment journey. From managing risk with our proprietary sell signals to refining your strategy through tailored goal alignment, our platform offers a holistic approach to investment success. Whether you're looking to diversify, maintain emotional balance, or get ahead with real-time market insights, DynaLogic is your one-stop-shop for financial empowerment. Don't leave your portfolio to chance; equip yourself with the tools and insights to make informed, independent decisions. Dive into the article to learn more about how you can maximize your gains while minimizing risks with DynaLogic.
Let's face it, market timing is a gamble, and FOMO can derail even the savviest investors. With DynaLogic, you escape this emotional rollercoaster. Instead of guessing when to buy or sell, our system gives you clear signals. We're talking about a method that allows you to trim your gains methodically, so you can reinvest and diversify—without ever missing a boom.
Why the DynaLogic system? Because it turns market unpredictability into your asset. When a stock soars post-sell signal, it's not a miss; it's the system working. We strategically sell portions, allowing you to stay invested long-term while reallocating gains. No second-guessing, no regret.
Here's the promise: Follow the system, detach from the market noise, and witness long-term profitability. We've got the case studies to prove it.
Don't sit on the sidelines. Activate your 7-day free trial for premium access to buy and sell signals on 240+ securities. It's time to ditch the FOMO and cultivate a portfolio built for real, sustainable gains.
Think differently with DynaLogic. It's not about timing the market; it's about prepping for its every move. Ready to try? Claim your free trial now.
"DynaLogic doesn’t predict the future; it prepares you for it!"
Still on the fence? Find out what our premium subscribers think:
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.
I've been following DynaLogic for a while now. It’s an invaluable tool to use as part of my investing strategy. I find it’s difficult for me to sell stocks when they are rising, only to kick myself when I didn't take gains if it drops down the road. So many publications focus on telling you what stocks to buy but I haven't found anything like this that alerts you when to sell which is really helpful when you can't monitor all your stocks all the time. I've also had some really nice gains off the buy signals too. - Kevin F.
The predetermined buy and sell signals built into the strategy make life easier and a more efficient use of time as the signals take the emotion out of the equation. Terry S.
I've been using DynaLogic for 6 months now. I've already seen a big impact and it's provided me a roadmap for sound decision making. The best part... I am not one that is trying to make the decisions. I've spent far too many years guessing what to do with my investments based on what feels right. This lays it all out in a simple way and tells me when and how to make decisions. Wesley L.
After reading, then sleeping on it, then rereading, the mathematics make good sense. Thanks for saving me from my emotions 🙂 – Dale R
I've been following for a while and just observing, I've missed out on major increases, while losing 20% trading on my emotions, I could've tripled that amount in gains if I followed your signals!
It's a no Brainer to sign up...I'm excited to see where this leads.
Now I can focus on increasing my income while following your trade signals. Tim O.
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.
Want to help your friends invest more intelligently too? Share Risk Off with a friend.