Market Update: 11-28-22

Hitting Resistance! The Issachar Fund is 30% invested in 17 growth stocks! Most of our stocks are in energy since that is where I am finding opportunities for continued growth. While oil is in a downtrend, energy stocks are trending higher, and I believe oil prices will soon play catchup. Biden has been releasing oil from our strategic petroleum reserve every month since April 2021, and I expect that to end soon, causing oil prices to rise. Biden’s policies led us into this bear market, but now that the Republicans have won the majority in the House. I expect the frivolous, irresponsible spending to slow, which could tame inflation. The market may have bottomed on 10/13/22, factoring in peak inflation. Now we wait for indications the Fed may slow its rate increases. I am cautiously optimistic and plan to get more invested as we are rewarded for taking risk. My focus remains on risk management. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The S&P 500 index has had three waves down of selling since 12/31/21 and is down about -15% YTD! It is trading against a downtrend line drawn across those peak selling waves and its 200-DMA line of resistance. We are now at a critical test of resistance that has failed twice this year. If the S&P 500 breaks through these two resistance lines, that would be a sign of confidence the market sees a brighter future. If the S&P 500 comes under heavy selling at this critical juncture, we could be in for another test of the lows. My gut says we will break through resistance and head higher, but I will follow the price and volume charts. If our sell stops are triggered, I will act accordingly to avoid life-changing losses.

The Fed’s balance sheet declined by $4 billion last week and is down $344 billion since peaking on 4/19/22. The S&P 500 index tried to break above its 200-DMA on 4/21/22, which turned into a downtrend into its 6/17/22 low. The S&P 500 index tried to rally past its 200-DMA again on 8/16/22, leading to a steep decline into the 10/13/22 low. Since 1959, the US Money Supply (M2) has gone up each year, with a 0.3% increase in 1994, the smallest, and a 25% increase in 2020, the largest. 2022 is on pace to be the first calendar year in which the Money Supply has fallen in the last 60+ years, down 0.3% YTD. Liquidity drives the market!

Bottom Line: Issachar is slightly invested in growth stocks. The S&P 500 index is hitting resistance. It feels like the worst is behind us, and the market may be looking for an excuse to head higher, so I expect a breakthrough. However, I take my cues from the charts and act accordingly to be a good steward protecting and growing all Issachar shareholder assets. While in a bear market, we must defend capital to take advantage of the next bull market. My strategy works best when the market rewards risk-taking. Based on the chart setups, I hear the bulls scratching at the door. I pray the Chinese protesters get freedom and not another Tiananmen Square massacre. Grace and Peace to Everyone! (If you have questions or comments, please call 337-983-0676 or reply to Dexter@IssacharFund.com)

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

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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: 5011-NLD-11/28/2022.

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Dexter Lyons