Market Update: 10-24-22

Confirmed Uptrend!  The Issachar Fund is 94% in Cash! I took no action last week, but I did notice the market appears to be in rally mode. Investor’s Business Daily (IBD) declared a Follow Through Day (FTD) on Friday and changed its outlook to a “confirmed uptrend.” An FTD is when a major index closes at least 1% higher on greater volume at least four days after a bottom. All FTDs have preceded every bull market in the last 100 years, but not every FTD leads to a new bull market, according to IBD. IBD recommends that investors look for something to buy even if there is little merchandise with proper setups. The major indexes bounced up on strong volume on 10-13-22 and again on Friday, which is encouraging for the bulls. If index prices rise on above-average volume next week, I will likely dip my toe in the water to get net long. A few stocks in the energy space have bucked the downtrend and appear to be under institutional accumulation, but they are a little extended, so I will be patient and wait for proper pivot points to buy. The negative Fed fundamentals of rising rates and unwinding its balance sheet have not changed, but this could be a tradable rally in a Bear Market. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The market is forward-looking, and may see something I am not seeing! The market is always right, and I try to listen to what the market is saying. Maybe the market sees a “red wave” of republicans sweeping the House and Senate on November 8th, potentially putting the economy and country back on the right track. The woke, green new-deal climate change transgender ideology/agenda has hurt America, making us energy-dependent, and I believe most Americans have had enough. Evil will persist if good people do nothing, so please do your part to speak the Truth and use whatever platform you have. We are called to be the light in a very dark world, so please do your part. America was founded on Godly principles, and His hand has blessed/prospered us, so keep the faith, pray and bring your friends to vote.

The Fed’s balance sheet declined $15 billion last week and $36 billion the prior week, so the Fed is getting serious about killing inflation! The Fed is also expected to raise rates 75bps on November 2nd, so Quantitative Tightening (QT) is happening before our eyes. However, QT may already be priced in the market, so the market could be looking ahead, and seeing a change in leadership could be very bullish. I am skeptical, but I trust and rely on the charts because a picture is worth a thousand words/dollars.

Tidbits: The CDC unanimously added the COVID jab to the childhood vaccine schedule, despite being aware of the eight times increase in excess deaths of children in Europe since they approved the injections. The longer the US funds the war in Ukraine, the longer the war goes on, the more lives are lost, the more the country is destroyed, the more people face starvation, and the higher the threat of nuclear war. Existing home sales fell for the 8th consecutive month, down 24% over the last year and at their lowest levels since May 2020. When the National Debt hits $35 trillion next year, at a 6% interest rate, annual interest payments on the National Debt will exceed national defense, welfare, and education spending combined. At 8%, interest would exceed Social Security, national defense, and education combined. We need Godly leaders to turn America around before it is too late!

Bottom Line: Issachar is net short about 5%, but I plan to get long this week if I can find proper buy points in fundamentally strong stocks with sound chart patterns. The S&P 500 index is down about -20%, the NASDAQ 100 index is down about -30%, and Issachar is down about -5%, YTD, so we are winning by losing less. However, my goal is to make money, but there are times to go on offense, and there are times to stay on defense. The offense team may be entering the field for a little while. My long conviction level is low as I maintain humility and detach myself from preconceptions to focus on what the charts (price and volume) are saying. Avoiding life-changing losses by cutting losses small is how we survive in the short run and win in the long run. Grace & Peace to Everyone!

Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI

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Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting IssacharFund.com. The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC. Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC.
Important Risk Information: Mutual Funds involve risks, including the possible loss of principal. An investment in the Fund may not be appropriate for all investors. The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results. Ratings are only one form of Fund performance and should not be used as the sole consideration in an investment decision. Opinions expressed are subject to change, not guaranteed, and should not be considered investment advice. There is no assurance these opinions or forecasts will come to pass, and past performance is no assurance of future results. For more information regarding the fund, including current performance, please visit IssacharFund.com.   Review Code: 5890-NLD-10/24/2022.

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