Market Update: 11-21-22

Holding Tight! The Issachar Fund is 27% invested in 15 (mainly energy) growth stocks! Issachar finished slightly higher last week as I added a few more growth stocks to our portfolio. Oil and gas prices dropped and bounced off support, but energy stocks showed resilience by holding tight and not falling in sync with oil and gas. Oil and gas prices have been in a downtrend since 8/23/22, but many energy stocks are trading near all-time highs. While demand for oil and gas may have declined, the demand for fundamentally/technically sound high-growth energy stocks has been under institutional accumulation since 9/30/22. Energy stocks represented by the Energy Select Sector ETF (XLE) hit the right side of a cup-based pattern of resistance and could be poised to break out this week. If XLE comes under heavy distribution selling, we could be forced out of our positions. However, I believe XLE could break out and bring energy stocks higher along for the ride. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

My watch list of stocks with accelerating sales, earnings, and profit margins is expanding, indicating investors are increasing their appetite for risk. Junk bonds are trading above their 50-DMA. Investor’s Business Daily’s current outlook is a “confirmed uptrend” after the S&P 500 gapped up over 7% on 11/10/22, with positive volume spikes indicating strong demand. Since the gap up, prices have held steady, meaning buyers and sellers may be content with their positions.

The Fed’s balance sheet declined by a whopping $53 billion last week, so the Fed is still bent on bringing down inflation! Seeing the market trade sideways while the Fed drains liquidity is encouraging. Money could be coming off the sidelines anticipating the Fed will not crash the economy and stock market. I manage risk daily by adjusting exposure to a level commensurate with my expected return. I like how the market is acting despite all the bad data the market is digesting. Social media and cable news may paint an ugly picture in the future, but the market appears to see things differently.   

Bottom Line: We are invested and looking to get more as we are rewarded for taking risks. I am focused on energy because that is where I find opportunities. If I am wrong, I do not plan to stay that way. If I am right, we should do well. Whatever happens, God is still on the Throne of Grace, which will never change. Grace and Peace and Happy Thanksgiving! (If you do not want to receive these updates, please unsubscribe below)

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Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

Let us, therefore, come boldly unto the throne of grace, that we may obtain mercy and find grace to help in time of need. Hebrews 4:16

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: 5997-NLD-11/21/2022.

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Dexter Lyons