The Investor's Compass Weekly Signals - 10/9/23
"Successful investing is about managing risk, not avoiding it."
In Case You Missed It
🧭 Introducing "The Investor's Compass" Powered by DynaLogic
We are thrilled to announce that our newsletter is getting a new name: "The Investor's Compass" Powered by DynaLogic!
The name reflects our commitment to guiding you through the complex world of investing. Our advanced algorithm not only allows you to mitigate risk by strategically trimming gains but also alerts you to unique opportunities to initiate or add to stock positions when prices are declining, thereby increasing upside potential. It's more than a newsletter; it's your trusted guide to navigate both risks and opportunities while making intelligent, logic-based decisions. In simple terms, we guide you to “Buy low & Sell high”in an algorithmic, methodical way.
Plus a significant price reduction!
We have dropped the cost of our premium membership, with access to our daily buy & sell signals on 260+ securities to just $14.95 a month (a 40% drop) or $99.95/year (a 50% drop or just over $8/month). With almost 90% of our paid subscribers rating the subscription “Well Worth It” at the previous price, it’s a steal at the newly reduced price. You can easily pay for your subscription (and much more) with just a single trade. Check out our case studies to see some of the successful trades our subscribers have made, or click below if you’re ready to upgrade!
Trade of the Week
On October 3, 2023, we issued a Zone 4 85% Add/Initiate Sentiment Index on Sofi, Technologies, Inc. (SOFI) at $7.28. On October 6th, SOFI closed up 9.8% at $7.99.
This isn't just a one-time win. It shows the real value of acting on a strong signal. While we can't guarantee wins every time, our "Sentiment Index" rating is here to give you an edge. And remember, if you're not getting our daily updates, you might be missing out on opportunities like this one.
Ready to get all of our signals? Upgrade your membership with a 7 day free trial.
Quote of the Week
In the words of Benjamin Graham, the father of value investing, "Successful investing is about managing risk, not avoiding it."
This timeless wisdom captures the essence of our investment philosophy here at DynaLogic. While it's impossible to entirely escape risk when it comes to investing, effective management can mean the difference between erratic performance and stable growth.
Our signature approach through The Investor's Compass aims to do just that—manage risk while seizing opportunities for meaningful returns. By issuing smaller, strategically timed sell signals, we empower you to capture gains and protect your portfolio without disengaging from the market's upside potential. In simpler terms, instead of sitting on the sidelines, you stay in the game but with a more defensive stance, ready to act with precision when market conditions change.
The current market environment—characterized by increased volatility and uncertainty—makes the need for a systematic, risk-managed approach even more critical. Our unique signaling system provides you not only with actionable insights for adding to winning positions but also with a methodical plan to minimize losses. This balanced, dual-pronged strategy aligns perfectly with Graham's principle, allowing you to be proactive, yet judicious, in your investment decisions.
So, as you navigate the ebbs and flows of the market, remember that risk is not an enemy but a factor to be managed. And with DynaLogic's actionable signals at your disposal, managing that risk becomes less of a challenge and more of a strategic game plan, tailored to realize your investment goals.
Market Pulse
Job Market Dynamics
Despite market volatilities, the American labor market continues to defy expectations. September saw a remarkable increase of 336,000 jobs, far surpassing expert predictions and reaffirming the resilience of the U.S. economy. The unemployment rate remained steady at 3.8%, quelling near-term recession fears.
Interest Rates and the Bond Market
Recent job gains have resulted in a dramatic increase in bond yields, with the 10-year U.S. Treasury yield hitting its highest point since 2007 at around 4.79%. This upward movement indicates growing market confidence that the Federal Reserve may delay its transition to a rate-cutting stance, possibly until mid-2024.
Earnings Landscape
As we approach the upcoming earnings season, the outlook is less optimistic. Market analysts predict a slight decline in average earnings for S&P 500 companies, potentially marking the fourth consecutive quarter of decreased earnings.
Energy Market Fluctuations
The oil market has experienced significant volatility, with U.S. crude prices dipping by almost 9% in one week to approximately $83 per barrel. This decline is the most substantial since March 2023 and comes on the heels of a year-to-date peak of $94 per barrel just a few weeks prior.
Gold Prices
The gold market has seen its prices drop to a seven-month low, with futures trading around $1,816 per ounce, down from nearly $1,945 in September.
Inflation Concerns
The forthcoming Consumer Price Index report will offer insights into the ongoing inflation trends. The latest data showed a modest 0.3% rise in core inflation, discounting food and energy prices, which have been the primary drivers of recent inflation spikes.
Stock Market Performances
The stock market exhibited mixed behaviors. Large-cap growth stocks significantly outperformed the broader market, while large-cap S&P 500 stocks exceeded their small-cap Russell 2000 counterparts. Investors are cautious as they navigate through these turbulent times, resulting in subdued trading volumes.
Corporate and High-Yield Bonds
Corporate bond markets showed softer issuance, with wider spreads observed over the week. High-yield bonds faced pressures as rates surged and stock markets were unsettled. Managers are exercising increased selectivity in the current macro environment.
Weekly Signal Summary (Sells)
Our Sell technology is designed to sell into strength, taking some risk off the table, usually resulting in the underlying security continuing to move higher after the sell. This week we posted 4 sell signals which had a price move of greater than +-1.0%, and of these, 2 or 50% decreased in price after the sell signal.
Weekly Signal Summary (Add/Initiate) “Buy”
For the week we had 69 securities that had a price movement greater than +-1.0% on the week, with 48 or 69% of the securities moving higher after the Add/Initiate (Buy) signal.
This came despite significant market volatility for the week..
The DynaLogic strategy is always buying into weakness so it is highly possible the underlying security will continue to decline; however, we believe “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.
Understanding when to buy or sell in the market can be tricky, and our emotions can lead even experienced investors to make poor decisions. With DynaLogic, you get a more straightforward approach. Instead of trying to guess the best time to act, our system tells you clearly. We have a planned way to help you take some profits, letting you spread out and protect your investments, while also alerting you to opportune moments to add to or start a position.
Why use DynaLogic? Our system helps you use the market's ups and downs to your benefit. When a stock goes up and we suggest selling some of it, it's because that's how our system is set up. We help you sell in parts, so you can keep investing over time and take out profits in a planned way. This means less guesswork and fewer regrets. When a stock goes down, we alert you to opportune moments to add to your position, or open a position in a stock you’ve been following.
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. Take advantage of our 7 day free trial today!
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.
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