"The Investor's Compass" Weekly Signals - 12/11/23
"Risk comes from not knowing what you're doing." — Warren Buffett
For the week, the broad markets continued their march higher with the tech heavy Nasdaq leading the way for the week up .57%, followed by the S&P was up .24%%, and the Dow was up .02%. Treasury yields were basically flat for the week and gold was down -3.32% for the week
Trades of the Week
Sells
Add/Initiate
Highlights
Dollar General (DG)
DynaLogic issued a Zone 4 Add/Initiate on September 26, 2023 when the stock closed at $105.80. The most recent Sell signal was issued on December 1 at a closing price of $134.89 (an interim high). That’s a 27.5% gain.
Plug Power (PLUG)
Last week, PLUG was our star performer on the Buy side. This wee it was our star performer on the sell side PLUG. PLUG is down -16.46% form the last Sell signal.
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 exemplify how our insights can lead to informed decisions, yielding tangible benefits for our subscribers.
Ready to get all of our signals? Upgrade your membership with a 7 day free trial.
Quote of the Week
Warren Buffett, one of the most successful investors of all time, has famously said, “Risk comes from not knowing what you're doing.” This nugget of wisdom encapsulates the essence of informed investing. The key to mitigating risk lies not in avoiding the markets during turbulence but in navigating them with a compass that points to true north — data.
At DynaLogic, we resonate with Buffett’s philosophy through our commitment to empowering investors with knowledge. Our algorithm-based signals are not just guesses or hunches; they are the result of meticulous analysis, designed to bring clarity to the often opaque waters of the stock market.
Our introduction of the Relative Strength Indicator (RSI) is a testament to our pursuit of precision. By integrating RSI with our existing signal system, we enhance the robustness of our trade suggestions. RSI is a powerful tool that measures the velocity and magnitude of directional price movements. A high RSI value, typically above 70, suggests an overbought condition, possibly indicating a pullback. Conversely, an RSI below 30 may indicate an oversold state, presenting a potential buying opportunity.
What does this mean for you as an investor? It means that when DynaLogic issues a sell signal on a stock with an elevated RSI, like CrowdStrike Holdings (CRWD) at an RSI of 83.21, we are not merely suggesting a potential peak based on past price movements. We are pointing out that, by historical standards, such a stock is statistically more likely to retreat, presenting a strategic moment to consider securing gains or reducing exposure.
Similarly, when we highlight an add/initiate signal on a stock in a downtrend with a low RSI, we are identifying a point where the stock's price has been pressured enough that a rebound may be on the horizon, offering a valuable entry point.
By employing DynaLogic’s enhanced signals, you can approach the markets with the same confidence that comes from deep understanding — the very antidote to risk that Buffett refers to. This is the essence of smart investing: not the blind avoidance of risk, but the calculated navigation through it. With DynaLogic, you are equipped not just to survive the markets, but to thrive within them.
Market Pulse
📈 Market Trends: Navigating the November Uptick📉
Stock Market Continues Its Ascent The stock market has been on a steady climb, with all major U.S. stock indexes notching their sixth consecutive week of gains. The S&P 500 reached a new peak for the year, capping a near 12% rise over this recent winning streak. However, the pace has shown signs of tempering, with only marginal advances across the S&P 500, the NASDAQ, and the Dow in the latest week.
Employment Holds Steady The labor market displayed enduring strength, adding 199,000 jobs in November, a number modestly surpassing expectations and reinforcing the trend of consistent, albeit moderated, growth. With unemployment dipping to 3.7%, the job market remains a backbone of economic stability.
Inflation Concerns Subside Consumer inflation outlook has brightened, with expectations dropping to levels not seen since early 2021. This improved sentiment, derived from the University of Michigan's survey, signals a significant shift in perspective that could bode well for spending and investment decisions.
Analysts Cautiously Adjust Forecasts Analysts have pared down their Q4 earnings forecasts for S&P 500 companies more sharply than usual, with a 5% cut exceeding the two-decade average. This recalibration reflects a cautious stance amid ongoing economic recalibrations.
Cryptocurrency Finds New Vigor Bitcoin's value soared, hitting highs not seen since April of the previous year. The cryptocurrency's significant weekly upswing underscores the volatility and opportunities within the digital currency space.
Oil Prices Retreat The oil market experienced a dip, with prices briefly falling to a multi-month low, underscoring the fluctuating demand and geopolitical influences at play.
Gold Prices Take a Turn Gold saw a dramatic, albeit brief, rise early in the week, with futures momentarily breaching the $2,100 mark. Despite a pullback, the precious metal maintained a strong position over $2,000, reflecting investors' enduring interest in traditional safe havens.
A Week Packed With Economic Data The upcoming week promises to be eventful, with critical reports on consumer prices, retail sales, and the conclusion of the Federal Reserve's final meeting of the year. While no rate changes are anticipated, the Fed's communications will be closely parsed for indications of the 2024 economic policy direction.
Anticipating the Week of December 11-15 As we look to the week ahead, investors will likely focus on key economic data releases. Tuesday's Consumer Price Index will provide fresh insights into inflation trends, while Thursday's retail sales figures will shed light on consumer spending health. The Federal Reserve's meeting and subsequent press conference midweek could offer a glimpse into the central bank's plans for the new year, potentially setting the tone for market sentiment as 2023 draws to a close.
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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