The Investor's Compass Weekly Signals - 1/2/2024
"The New Year stands before us, like a chapter in a book, waiting to be written. We can help write that story by setting goals." – Melody Beattie
As we step into the New Year, it's a time of reflection and anticipation. Melody Beattie's words remind us that each new year is an opportunity to script our future, to set goals and strive towards them. At DynaLogic, we embrace this spirit of renewal and goal-setting.
How DynaLogic Aligns with the New Year Spirit:
New Beginnings: Just like the fresh start a new year offers, DynaLogic provides an opportunity to reassess and realign your investment strategies, adapting to the changing market landscape.
Setting Goals: Our platform helps you set clear, achievable investment goals. Whether you're aiming for growth, stability, or diversification, DynaLogic is your partner in this journey.
Writing Your Story: With our advanced analytics and market insights, you are equipped to make informed decisions, much like writing your own success story in the financial markets.
Embracing Change: Just as a new year brings change, DynaLogic’s adaptive algorithms ensure you stay ahead in the ever-evolving world of investments.
Let's welcome 2024 with a commitment to growth and excellence. Together with DynaLogic, step confidently into this new chapter, ready to seize the opportunities it brings.
We finished the year on a strong note, with 92% of the sell signals sent last week moving lower. Ready to get access to all of our signals? Click below to subscribe today!
For the week, the broad markets finished the year on a positive note. The Dow closed out the year up 13.74%, the S&P closed up 24.29%, and the Nasdaq was up 53.56% for the year. While the year for Treasuries was anything but calm, the 10 YR Treasury finished the year right where it started 3.88%. Gold was also positive for the year up 13.22% while reaching a new high.
Trades of the Week
Sells
Add/Initiate
There were no Add/Initiate trades that moved up or down greater than 1%.
Highlights
Last week saw our signals make some excellent calls, with a series of sells despite the fact that the broader markets were higher on the week. There were 12 Sell signals that had a price move of greater than 1% and 92% of them were lower after the Sell signal.
We are constantly trying to add value with 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!
Grayscale Bitcoin Trust (GBTC)
DynaLogic issued a Sell signal GBTC on 12/22/23 with a closing price of $36.91 which was the high for 2023. The Relative Strength was 67.78 approaching overbought territory.
Affirm Holdings, Inc. (AFRM)
Dynalogic issued a Sell signal on 12/27 and the stock closed down -4.1% as of the close on 12/29. Relative Strength on 12/27 was 74.04, overbought.
Ready to get all of our signals? Upgrade your membership with a 7 day free trial.
Market Pulse
📈 Market Trends: Markets Close 2023 on a High Note with 9 Consecutive Weeks of Gains 📉
As 2023 drew to a close, the U.S. stock market continued its upward trajectory, marking its ninth consecutive week of gains. This consistent performance brought the S&P 500 tantalizingly close to its peak, just 0.6% shy of the record high set on January 3, 2022. The week saw the Dow climbing by 0.8%, the S&P 500 increasing by 0.3%, and the NASDAQ inching up by 0.1%.
2023: A Year of Strong Recovery The S&P 500's 26.3% total return in 2023 marked a significant rebound, contrasting sharply with the 18.1% decline in 2022. It was a year that favored the NASDAQ, which soared by 44.6%, while the Dow also posted a healthy gain of 16.2%.
Bond Market: A Dramatic Shift The bond market experienced a remarkable turnaround in 2023. The 10-year U.S. Treasury yield, which had spiked to nearly 5.00% in mid-October, dropped significantly to close the year at 3.88%, mirroring 2022’s year-end yield.
Growth Stocks Lead the Charge The equity market in 2023 was characterized by a pronounced shift in style performance. Mega-cap growth stocks drove a large-cap growth index to a staggering 42.7% total return, far outpacing the 11.5% achieved by large-cap value stocks. This was a complete reversal from 2022's trends, where value had dominated.
Concentration in Gains A notable feature of 2023’s stock market was the concentrated nature of gains. Seven mega-cap companies primarily in tech, communication services, and consumer discretionary sectors, were responsible for a massive 62.2% of the S&P 500's total return.
Small-Caps: A Late Surge Small-cap stocks, despite lagging behind large caps for most of the year, made a significant comeback in the final two months, closing the year with a 16.9% total return. The Russell 2000 Index surged by 22% in the year's last stretch.
Sectoral Performance Disparities The performance across sectors varied widely, with information technology and communication services leading the way. However, utilities and energy sectors didn’t fare as well, ending the year with negative returns.
Looking Ahead to 2024 The focus now shifts to the labor market, with high anticipation for the upcoming job report. The December update follows November's optimistic figures and is expected to provide insights into the market's direction in early 2024.
The Week Ahead (January 1-5)
New Year’s holiday observed; financial markets closed.
Key economic reports include construction spending, the ADP National Employment Report, and the Institute for Supply Management’s indices.
The release of minutes from the December Federal Reserve meeting and labor statistics will be crucial data points for investors.
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.
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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