Lion

MARKET UPDATES

Directly from Dexter Lyons, Portfolio Manager

Market Update: 11-11-19

The Issachar Fund (LIONX), is about 40% invested in stocks and looking for more opportunities!  The major stock indexes have now all broke out above their ceilings of resistance.  That trend break-out confirmed what I needed to do and gave me the conviction to get invested.  We had been in a wide trading range for the last six months as stocks digested the “ramp up” from Christmas Eve to the beginning of May.  I now believe stocks could trend higher into January.  Consequently, I purchased an equal weighting basket of …

Market Update: 11-04-19

The Issachar Fund (LIONX), is Defensively positioned but that could change very soon!  I made no changes last week, but I expect to get back in the game shortly.  The Fed cut rates ¼ point last Wednesday as expected and the unemployment numbers came in better than expected on Friday.  GDP growth came in at a 1.9% annualized rate for the 3rd quarter. The market cheered the news by breaking out to new highs!  Historically, the market is in a seasonally strong period and I now expect the market to …

Market Update: 10-28-19

The Issachar Fund (LIONX), is Defensively positioned in Cash except for one small 3% stock position.  My junk bond average Risk On/Off indicator is still flashing “Risk On”.  However, the junk bond average seems to be up against a strong ceiling of resistance.  My “buy right” discipline has me cautiously waiting for what could be considered lower risk buy points of which I am finding very little to get excited about.  The S&P 500 Index is also trading up against major resistance last reached in July.  This is the third …

Market Update: 10-21-19

The Issachar Fund (LIONX), is in a Defensive Cash position patiently waiting for our next opportunity.  I did not make any changes last week as the market could not muster enough momentum/catalyst to break out about above the July and September highs of resistance. The market looks “toppy” here and I do not see a catalyst to move us past this line of resistance which is less than 1% away.  Better than expected earnings and optimistic forward guidance could propel the market higher but I am not seeing that in …

Market Update: 10-14-19

The Issachar Fund (LIONX), is in Cash patiently waiting for our next opportunity.  I sold all of the bond positions from the fund portfolio as the 20-year treasury bond dropped about 3.8% last week which caused yields to shoot higher.  The 10-year treasury yields made a higher low on October 4th (new up-trend?) and yields are approaching a well-defined down trend line which could be penetrated shortly.  If the down-trend line in yields are broken to the up-side, then we could be on the cusp of a major bond adjustment.  …

Market Update: 10-07-19

The Issachar Fund (LIONX), is fully invested in Bond ETFs.  I added to our bond positions (international, munis and short-term corporates) last week as they seem to have caught a bid while stock indexes dropped about 3% into Wednesday then rallied about 2% into Friday.  Stocks have been trapped in a volatile trading range between the 7/26/19 high and the 8/5/19 low.  Bonds have trended higher since July 26, but they have exhibited more volatility than I was expecting.  I believe this market is more suited for nimble day traders …

Market Update: 09-30-19

The Issachar Fund (LIONX), is about 80% invested in Bond and Preferred ETFs.  I reduced exposure last week as some of our positions seem to have run out of gas.  Gold fell hard mainly due to a strong dollar.  The dollar rallied mostly because the Euro and Yen dropped as their economic growth prospects dwindled further.  LIONX holds international, junk, muni and corporate bond ETFs and one Preferred Stock ETF.  If these remaining positions do not perform as I expect, I will act accordingly.  LIONX is a BRI, Alternative, Risk-Managed, …

Market Update: 09-23-19

The Issachar Fund (LIONX), is fully invested in Bond and Preferred ETFs and a Gold Mutual Fund.  The yield on the 10-year Treasury Bond peaked on 9/13/19 as it bumped up against its down trending line of resistance and has traded lower since.  This down trend in yields started in November 2018 which was right around the time the stock market started to decline so I believe this line of resistance is significant.  My conviction level in the bond market has gone up substantially and bonds are our largest weighting.  …

Market Update: 09-16-19

The Issachar Fund (LIONX), is essentially in CASH until the dust settles!  All positions were under pressure last week as rates rose, so I liquidated all bond exposure.  The long-term treasury bond dropped over 6% last week as the market digests a potentially less-dovish (lower rates) Fed.  I believe the market was expecting the Fed to lower rates ½ point this Wednesday but now the market seems to be expecting a ¼ rate cut instead.  I believe this readjustment of expectations is causing a lot of disruption/volatility in the stock …

Market Update: 09-09-19

The Issachar Fund (LIONX), is fully invested in Muni Bonds, Mortgage Bonds, International Bonds and Gold.  I reduced our bond exposure last week due to a spike in rates which caused our bond positions to decline in value.  I did not sell our gold position, but it is on my sell “watch” list in case I am wrong.  I was expecting gold to “correct” because it was extended and due for some type of consolidation.  However, I believe gold is under long-term institutional accumulation (near 6-year high) as QE expands …

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