"The Investor's Compass" Weekly Signals - 11/27/23
"In the short run, the market is a voting machine, but in the long run, it is a weighing machine." — Benjamin Graham
For the holiday shortened week, the broad markets continued their march higher with the Dow leading the way for the week up 1.25%, the S&P was up 1.00%, and the Nasdaq was up .90%. Treasury yields were little changed and gold was higher by 1.01% for the week.
Trades of the Week
Sells
Add/Initiate
Highlights
Palantir Technologies (PLTR)
PLTR was our star performer on the Sell side down -6.3% form our sell signal of $20.49. The stock hit a 1 year high on Nov 20 at a closing price of $21.34. Scock closed 0n 11/24 at $19.20.
Novavax Inc (NVAX)
NVAX was our star performer on the Add/Initiate side adding 4.1% in just two days. We issued our Add/Initiate signal on Nov 21st at $5.35 which was the 1 year low. The stock was in an oversold position and our Add/Initiate signal caught the bottom.
These examples highlight the core strengths of DynaLogic:
Timely Predictions: Our system's ability to forecast stock movements ahead of time can be a game-changer for investors looking to maximize gains and minimize losses.
Balanced Portfolio Management: By offering signals on both ends of the spectrum - sell and add/initiate - we help our subscribers maintain a balanced and diversified portfolio.
In essence, DynaLogic isn't just about following market trends; it's about staying a step ahead. Our recent signals on PLTR, CRSP, INTC, GOOG and more on the Sell side and NVAX, BMY, and SQQQ exemplify how our insights can lead to informed decisions, yielding tangible benefits for our subscribers.
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Quote of the Week
"In the short run, the market is a voting machine, but in the long run, it is a weighing machine." — Benjamin Graham
Benjamin Graham's wise words resonate deeply with DynaLogic's methodology. This quote underscores the idea that while short-term market movements may be driven by popular sentiment (akin to voting), the long-term performance is determined by the actual substance and value of the investments (akin to weighing).
At DynaLogic, we leverage this principle by focusing on the dynamics of price movements, understanding that while short-term market fluctuations may seem chaotic, they often provide opportunities for strategic decision-making. Our algorithm is fine-tuned to recognize patterns within these fluctuations, identifying potential signals for buying or selling based on how the market is "voting" in the short term.
However, we also keep an eye on the "weighing" aspect, understanding that true value often reveals itself over a longer horizon. Our approach balances the immediacy of price movements with a perspective on longer-term trends, enabling our subscribers to make informed decisions that consider both the immediate market sentiment and the underlying longer-term potential of their investments. This dual focus helps investors navigate the often choppy waters of the stock market with greater confidence and strategic insight.
Market Pulse
📈 Continued Climb & Calm: A Week of Steady Growth in U.S. Markets 📉
Steady Growth Amidst a Calmer Market
U.S. stock indexes marked their fourth consecutive week of gains, with the S&P 500, NASDAQ, and Dow all seeing around a 1% increase in a week shortened by the Thanksgiving holiday. This rise brought the S&P 500's total gain to nearly 11% over these four weeks.
Growth Stocks Outshine Value in Year-to-Date Performance
As 2023 nears its close, U.S. growth stocks have significantly outperformed value stocks, reversing the trend from 2022. A U.S. large-cap growth index recorded a 36.7% year-to-date total return, starkly contrasting with a 4.8% return for its value-style counterpart.
Earnings Growth Back on Track
With most third-quarter results reported, S&P 500 companies are set to show an average earnings increase of 4.3% from the same quarter a year ago, as per FactSet. This marks the first quarter of year-over-year earnings growth since Q3 2022.
Diminishing Market Volatility
The Cboe Volatility Index (VIX), a measure of market volatility expectations, continued its downward trend for the fifth straight week. The VIX has dropped approximately 42% from its peak in late October, mirroring its year-to-date decline.
Challenges in the Housing Market
October saw a significant 14.6% year-over-year drop in U.S. existing home sales, reaching a 13-year low. High interest rates continue to impact the housing market, with predictions suggesting 2023 could see the lowest total of existing home sales since 2011.
Fed Maintains a Cautious Stance
Minutes from the latest Federal Reserve meeting revealed a consensus to keep interest rates high. Fed officials emphasized the need for "restrictive" policies to ensure inflation trends back towards the 2% target, signaling no immediate inclination for rate cuts.
Mixed Expectations for Holiday Retail Sales
As Black Friday kicks off the holiday shopping season, projections for U.S. retail sales are varied. The National Retail Federation anticipates a 3.0% to 4.0% increase in holiday spending, potentially falling short of last year's 5.4% growth.
Economic Focus: GDP Update
With no major job reports due until December 8, the spotlight this week turns to the second estimate of U.S. GDP growth for Q3. The initial estimate indicated a robust annual growth rate of 4.9%, a notable increase from the 2.1% in Q2.
The Week Ahead
Monday: New home sales (U.S. Census Bureau)
Tuesday: S&P/Case-Shiller Home Price Index; Consumer Confidence Index
Wednesday: U.S. Q3 GDP second estimate; Personal Consumption Expenditure Price Index
Thursday: Personal income and spending data; Weekly unemployment claims
Friday: Pending home sales; ISM Manufacturing Index; Construction spending
Stay tuned for these updates, as they will likely shape market sentiment and investment decisions in the coming week.
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.
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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