The Investor's Compass Weekly Signals - 10/16/23
"The four most dangerous words in investing are: 'This time it's different.'" — Sir John Templeton
In Case You Missed It
🧭 Introducing "The Investor's Compass" Powered by DynaLogic
Hello valued subscribers!
It's now been two weeks since we transitioned to our new identity, The Investor's Compass Powered by DynaLogic, and we couldn't be more excited about what lies ahead. The name isn't just new; it encapsulates our mission to be your trusted navigation system through the labyrinthine world of investing.
Why You Should Care About Your Membership
Algorithmic Precision: Our cutting-edge algorithm doesn't just caution you to trim gains prudently; it also pinpoints the ideal times for you to augment or commence stock positions when prices are on the downside. In other words, it's like having a GPS that tells you exactly when to accelerate and when to brake, increasing your potential to “Buy Low & Sell High.”
Expanded Coverage: We've listened to your feedback, and our daily buy & sell signals now cover over 260 securities. That's a whole universe of investment opportunities at your fingertips!
Case Studies: Don't just take our word for it. Review the success stories shared by our subscribers who have made profitable trades based on our signals. It’s a testament to the real-world value we bring to your portfolio.
More Bang for Your Buck!
We’re keeping our special reduced rates: just $14.95 a month or $99.95/year—that's only slightly over $8 a month when you opt for the annual subscription. Considering that nearly 90% of our subscribers rated our service as “Well Worth It” at our previous pricing, this is an incredible deal you don't want to miss. One successful trade based on our advice could not only cover the cost of your subscription but also add a tidy sum to your financial nest egg!
Your Path to Financial Mastery
With The Investor's Compass, you aren't just a subscriber; you're an empowered investor, equipped with the tools and insights to make smart, data-driven decisions. Navigate your way to wealth with confidence and precision!
So, if you haven’t yet upgraded to our premium membership, now is the time. Week after week, why continue to deliver outstanding performance to our subscribers. Don’t sit on the sidelines!
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We Want to Hear From You: Are You Interested in Option Trading Signals?
We're continually striving to bring you the best in investment guidance, and now we're considering expanding our services to include Option Trading Signals. Our preliminary data analysis is incredibly promising, showing over 50% returns on a set of option trades just for the month of October!
Before we roll this out, we want to hear from you. Do you trade options? Would you find it valuable if The Investor's Compass by DynaLogic started providing recommendations for options trading based on our tried-and-true algorithm?
Your input is invaluable to us as we continue to enhance the range and quality of services we offer. Thank you for being a part of our investment community!
Trade of the Week
On October 10, 2023, we issued two Zone 2 Sentiment Index sales on DraftKings (DKNG)and Pinterest (PINS). By the market close on Friday the 13th, DKNG had traded down -5.7% and PINS had traded down -6.9%.
This isn't just a one-time win. It shows the real value of acting on a our signals. 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
Sir John Templeton once said, "The four most dangerous words in investing are: 'This time it's different.” This timeless wisdom resonates with us at The Investor's Compass by DynaLogic.
While markets can be swayed by emotion, hype, and speculation, our advanced algorithm takes a different approach. We remove the emotional pitfalls of trading by offering data-driven, logic-based buy and sell signals. So, whether the market is soaring to new heights or diving lower, our system maintains its disciplined, quantitative focus—essentially saying, "It's not different this time; it's just another cycle."
By subscribing to The Investor's Compass, you're gaining access to a tool that adheres to fundamental principles of investing while adeptly navigating the ever-changing tides of the financial markets. Stick with what works, and avoid the trap of thinking "this time it's different."
Join us and invest based on time-proven strategies, not passing fads or unreliable emotions.
Market Pulse
Equities Mixed Amid Earnings Season
U.S. stock markets showed a volatile performance last week with the major indexes like S&P 500 and the Dow ending with fractional gains, while the NASDAQ registered a slight decline. The earning season kicked off with a positive note as three major U.S. banks outperformed analysts' expectations in both net income and revenue. The market is cautiously optimistic, with analysts predicting a 0.4% average rise in S&P 500 companies' earnings, which could potentially break a streak of three consecutive quarterly earnings declines.
Treasury Yields: A Pullback but Still Elevated
The yields on U.S. government bonds, specifically the 10-year Treasury, saw a minor pullback, snapping a five-week gain. Despite the retraction, the 10-year yield hovered around 4.63%, the highest level since mid-2007. This retreat in yields is being seen as a silver lining that may reduce the pressure for further rate hikes by the Federal Reserve.
Federal Reserve: A Divided House
Minutes from the Federal Reserve's September meeting revealed a divided stance among policymakers on the future path of interest rates. While a majority expressed that a rate hike could be likely at some point, others argued against any further increases. The next two-day Fed meeting will conclude on November 1, which markets will closely watch for any policy clues.
Inflation: Steady but Uneven
The U.S. Consumer Price Index (CPI) for September showed little change, remaining at an annual figure of 3.7%. However, the numbers masked varying trends within, such as rising housing and energy expenses, even as food costs slipped. The headline CPI may not be signaling alarm, but the underlying components hint at complex inflationary pressures.
Geopolitical Tensions and Oil Prices
Ongoing geopolitical tensions in the Middle East and U.S. sanctions against Russian oil exports pushed U.S. crude prices to nearly $88 per barrel, up from less than $83 the previous week. While markets have historically overcome geopolitical shocks, the current events have led to a flight-to-safety in bonds and an uptick in oil prices.
Underperformance in Small Caps
The Russell 2000 Index, a small-cap benchmark, declined around 1.5% last week, extending its underperformance for the year. This trend contrasts with historical patterns where small-cap stocks generally outperform coming off bear-market lows.
Retail Sales and Data Ahead
Upcoming U.S. retail sales data for September will be scrutinized to gauge the economic momentum amid inflationary pressures. Despite headwinds, retail sales showed positive growth in the past two months.
Diversification: The Need of the Hour
With markets facing a plethora of variables—from geopolitical risks to divergent performance in stock categories—investors are advised to remain diversified. The recent focus on a few large-cap stocks has led to concentration risks, emphasizing the need for a balanced portfolio.
The Week Ahead
Monday: No major reports scheduled
Tuesday: U.S. Retail Sales
Wednesday: Business inventories, U.S. Census Bureau
Thursday: Industrial production and capacity utilization, U.S. Federal Reserve
Friday: Housing Market Index, Housing starts, and Existing home sales
Outlook: With various factors like earnings season, geopolitical tensions, and pending Fed meetings at play, market participants should prepare for a week potentially filled with volatility. As Sir John Templeton cautioned, "The four most dangerous words in investing are: 'This time it's different.'" Investors are advised to stick to the fundamentals and remain diversified.
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 15 sell signals which had a price move of greater than +-1.0%, and of these, 10 or 67% decreased in price after the sell signal.
Weekly Signal Summary (Add/Initiate) “Buy”
For the week we had 14 securities that had a price movement greater than +-1.0% on the week, with 10 or 71% 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!"
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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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