The Issachar Fund (LIONX, BRI & ESG) is 100% invested in 52 growth stocks on Sunday, Dec. 6, 2020. The top three sector LIONX weightings are software, medical and chips. I am still bullish on the stock market, and I expect the rally to continue melting higher into Christmas. However, I am not finding fresh setups to buy because many of the leaders appear extended in price, so I am looking for secondary "add on" buy points.
I sold a few stocks before they reported earnings last week and added those proceeds to existing positions. While investor psychology and sentiment signals may be indicating that stocks are overbought, and due for a correction, I do not consider that a sell signal. I use fundamentals (rising sales and earnings) and technical chart patterns as buy signals, but I rely on a stock's price action to get me out. I typically sell a stock before an earnings release because the risk of a price drop is often too much potential risk. In other words, I would rather miss an opportunity than to lose money.
If a stock trades 8% below my trailing stop, I typically sell. If I find a stock with a more favorable risk/reward relationship, I may use that to get me out also. In my opinion, buying is relatively easy, but I have found that selling takes practice and discipline.
I have been investing (buying and selling) for over 30 years, and I have not mastered it yet, nor do I feel that I ever will. Just when I think that I have figured out the market, it changes, and I humbly get back to work finding another investing strategy trying to stay ahead of the game. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)
Talks of a vaccine and stimulus may have helped propel the market indexes to all-time highs last week! The market may be trying to price in the positive effects of a near-term COVID-19 vaccine as indexes traded through all-time high lines of resistance. A vaccine could relieve a lot of the fear and lockdown control, and a "free" Santa stimulus check may help relieve some holiday stress as well. However, yields have been rising, and the dollar has been dropping, but the Fed appears to still have its foot on the gas of liquidity. To me, liquidity is the key to this bull market advance, and it may not last forever, so my eyes are on the Fed, yields and the dollar.
Bottom Line: LIONX is still fully invested, and liquidity remains strong, so my conviction level is high. There is always a risk of a steep one- or two-day price drop to shake out "weak hands," but I would likely view that as a buying opportunity. I believe the trend is your friend, and there still appears to be room to run higher into Christmas. If I am wrong and the market character changes for the worse, I will do my best to avoid any life-changing losses in LIONX. Jesus is the reason for the season, so please join me in celebrating the birth of our Savior, who died for all sins past, present and future. I pray God's grace, peace, and blessings on you and your loved ones. Amen!
" He is the atoning sacrifice for our sins, and not for ours only, but also for the sins of the whole world" (1 John 2:2).
LIONX is a BRI/ESG, tactical, alternative, mutual fund actively managed like a hedge fund.
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, which can be obtained by calling 1-866-787-8355 or visiting LIONX.net. 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 making an investment decision. For more information regarding the fund, including current performance, please visit issacharfund.com. For more information on LIONX, please visit LIONX.net. NLD Review Code: 8197-NLD-12/7/2020
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