"The Investor's Compass" Weekly Signals - 12/26/23
"Success is not final, failure is not fatal: It is the courage to continue that counts." — Winston Churchill
Happy Holidays to our all of our subscribers! We hope you had the chance to slow down and spend meaningful time with your loved ones.
For the week, the broad markets continued their march higher with the S&P leading the way up .92%, followed by the Nasdaq up .75%, and the Dow up .31%. Treasury yields were basically flat for the week after a big drop the previous week and gold finished off the week up 1.75%.
Trades of the Week
Sells
Add/Initiate
Highlights
Last week saw our signals make some excellent calls, with a series of sell and buy signals culminating in notable gains for proactive subscribers. Those who leveraged our Sell signal for Nike (NIK) sidestepped an 11.8% slide following a less-than-stellar revenue forecast.
In a similar vein, C3.ai (AI) validated our Sell recommendation with an 11% decline, as operational costs overshadowed their revenue growth. Conversely, our timely Add/Initiate for CRISPR Therapeutics (CRSP) coincided with a 4.7% uptick, rewarding followers who capitalized on the company's recent medical breakthroughs.
Plug Power (PLUG) showcased the agility of our system, with a Sell signal succeeded by a Buy recommendation, leading to an impressive 8.7% recovery. ROKU Inc. (ROKU) also illustrated the benefits of our signals, with a post-Sell signal Add/Initiate translating to a solid 2.5% increase.
A few stocks we sent strong sell signals for last week that also have a high RSI include Affirm Holdings (AFRM) and Pinterest Inc (PINS). Both of these stocks have continued their positive momentum, but are definitely ones to keep an eye on over the next few weeks as our system indicates they could be due for a reversal.
As we celebrate these triumphs, we’re reminded of the value that comes from informed, timely decisions. With each signal, DynaLogic continues to provide a pathway to potential profits and a safeguard against market downturns.
Stay tuned, stay prepared, and let’s keep the momentum going!
Nike, Inc. (NIK)
DynaLogic issued a Sell signal on 12/19/23 and NIK issued weak revenue forecast after the market close on 12/21. Stock traded down -11.8% on 12/22.
We sent a Zone 3 sell signal, Nike also had a high RSI at 79, meaning it was more likely to see a trend reversal after its big move higher since October
C3.ai, Inc (AI)
Dynalogic issued a Sell signal on 12/19 and the stock closed on 12/22 down 11%. Revenue growth was overshadowed by an increase in expenses.
Plug Power (PLUG)
DynaLogic issued a Sell signal on 12/15 having climbed 19.8% from the previous Add/Initiate. DynaLogic issued another Buy with the stock down -11.7% from the 12/15 Sell. Stock closed the week up 8.7%
CRISPR Therapeudics (CRSP)
CRSP has been in the news with its success treating sickle cell anemia. Stock was oversold and DynaLogic issued an Add/Initiate. Stock closed up 4.7% for the week.
ROKU Inc. (ROKU)
DynaLogic issued a Sell signal on 11/28/23 when ROKU closed at $106.87. )n 12/20, DynaLogic issued an Add/Initiate at $89.11. Stock closed the week up 2.5%.
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Quote of the Week
"Success is not final, failure is not fatal: It is the courage to continue that counts." — Winston Churchill
Navigating the financial markets often resembles sailing the high seas; there are days when the waters are calm and the journey is smooth, and others when the waves challenge even the most seasoned sailors. In this volatile voyage, DynaLogic serves as your steadfast compass, guiding you through both fair and stormy weather.
Our trading system is built on the understanding that the markets are not a one-time battleground but a continuous journey of growth, learning, and adaptation. Churchill's wisdom reminds us that no single victory guarantees perpetual success, nor does a loss spell the end of one's investing journey. It's the resilience and the courage to persist—qualities that every investor must hold dear—that truly count.
DynaLogic embodies this spirit of perseverance by providing a system that is designed not just for the short-term triumphs but for the long haul. Our signals are not just waypoints for immediate gains; they are part of a broader strategy that equips you with the knowledge and confidence to move forward, regardless of market conditions.
We recognize that success in the market is a series of calculated moves, informed decisions, and sometimes, the wisdom to wait for the right moment. With DynaLogic's insights, you are not alone in making these decisions. Our system offers a continuous flow of data, trend analyses, and predictive indicators that empower you to act with conviction—even when the markets don't seem to be in your favor. As you engage with our platform, remember that each signal, whether it leads to a win or a lesson, is a step towards your long-term financial aspirations.
At DynaLogic, we don't just offer signals—we foster a community of tenacious investors who, armed with our advanced analytics, are prepared to make the most of the markets' ebbs and flows. Let's continue to navigate these waters together, with the courage that underlies every successful investor's story.
Market Pulse
📈 Market Trends: Eight-Week Winning Streak: Sustained Momentum or a Pause Ahead? 📉
Continued Uplift: U.S. stock indexes marked their eighth consecutive week of gains, albeit at a more modest pace. The S&P 500, just shy of its record high, replicated a positive streak last seen in November 2017. The Dow reached a new peak, surpassing its previous record from January 2022.
Inflation Edging Towards Target: The Federal Reserve’s key inflation measure showed a month-to-month decrease for the first time since April 2020. This brings the year-over-year rise to 2.6%, inching closer to the Fed’s 2.0% goal.
Small Caps Take the Lead: The Russell 2000 Index, representing small-cap stocks, continued to outperform large-cap indexes, recording almost 3% gains for the week. This rally totals over 24% since late October.
Consumer Confidence Rebounds: Following months of decline, consumer sentiment surged in December, as per the University of Michigan’s report, reflecting growing optimism about inflation cooling off.
Slight GDP Revision: The final estimate of the U.S. third-quarter GDP was adjusted down to 4.9%, indicating robust economic expansion, albeit slightly lower than the 5.2% previously reported.
Earnings and Buybacks: Fourth-quarter earnings growth is projected to dip to 2.4%, a decrease from the third quarter. Meanwhile, share repurchases by S&P 500 companies increased in the third quarter of 2023.
Looking Ahead: The closing week of 2023 is expected to be relatively quiet, with a few key reports on home prices and unemployment claims. In early 2024, the focus will shift to the monthly employment report due on January 5.
2023: A Year of Rallies and Resilience
2023 witnessed several market phases, including robust rallies, regional bank crises, and fluctuating interest rates. Equities and bonds both made commendable comebacks, highlighting the efficacy of long-term, disciplined investment strategies.
Fed's Influence and Rate Forecasts: The Fed maintained its rate, signaling potential cuts in 2024. Market expectations quickly adjusted, anticipating up to six rate cuts next year.
Economic Outlook and Sector Performance: Despite a projected economic slowdown, consumer spending remained resilient. The technology, communication services, and consumer discretionary sectors led the gains in 2023.
Interest Rates and Economic Growth: Interest rates, particularly the yield curve, played a crucial role in shaping market dynamics. The U.S. economy demonstrated resilience, with the third-quarter GDP growth being the strongest in nearly a decade.
Looking Forward to 2024: While expecting some market volatility, the general outlook for 2024 is cautiously optimistic. Factors such as potential Fed rate cuts, consumer spending trends, and corporate earnings will be pivotal in shaping the market trajectory.
In Case You Missed It
DynaLogic Unveils RSI-Enhanced Trading Signals
A new era of trading intelligence has arrived at DynaLogic. We proudly introduce the integration of the Relative Strength Indicator (RSI) into our trading signals, offering a robust layer of precision to your investment strategy. Our in-depth analysis has illuminated the power of this synergy, with a remarkable 87.5% of identified oversold signals since October 27 leading to positive outcomes by December 7.
Among these were standout movements like ARKK surging by 41.6% and KRNT by 33.4%, showcasing the potent combination of our DynaLogic signals with the RSI metric.
As a momentum oscillator, RSI pinpoints overbought or oversold market conditions, making it easier for our subscribers to spot the stocks most likely to have a reversal, and thus the highest probability trades to act on. It's not just about knowing when to act—it's about the confidence to make those critical decisions. With RSI, we're elevating the science of timing, trend confirmation, divergence detection, and strategic entries and exits.
Discover the full scope of this transformative development and understand how it fortifies the backbone of our DynaLogic signals. Embrace the change, seize the opportunity, and let's cultivate your portfolio's growth together.
Read the full announcement and dive into the examples that showcase our enhanced signal strength.
Our System
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.
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"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.
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