Good Evening, Well it was cold in most of the nation but that was not the case for the market as it remained red hot. Earnings kicked off in earnest today and they were very good buoying investor confidence in the US economy. Reports again showed that inflation is closing in on the Fed target of 2% so it’s pretty much a given that the economy will overheat but then again that’s what healthy economies do. I my humble opinion, the recent market stimulation extended the bull market. It seems that as the FED winds down the stimulation that the market is resuming the cycle that it would have been in some years back had it not been for the stimulation in the first place. To put it simply, the market and the economy become healthy, then overheat, then contract. In even simpler terms, what goes up must come down. It’s worth noting that the current corporate tax cut is a form of stimulation in and of itself and has even further extended this bull market. Healthy markets will correct and at some point that’s exactly what this one will do without the artificial stimulation to hold it up. However, as I said yesterday, we are way early in the cycle so it’s nothing to get worked up about now. We are reactive traders and we will react to whatever the market throws at us. We talk about what the market will do because it’s always nice to have a plan but we certainly don’t make our market decisions based on that speculation. Never! Our system is to watch our charts and react to what we see. Someone asked me recently if I was concerned about being 100% invested and getting caught in a selloff. Well no….not really. If I believed that, I would have sold before the the end of 2017, enjoyed the nice 19 percent plus gain we made and waited for the market to drop. Instead, I stayed invested and have added another 3 plus percent! Bull markets never fall apart in a day. It’s always a process and if you ride the rally to the end you will have the more than enough profits to cover the turn. Trends always carry on longer than humans think to be reasonable. As I have said many times, no one knows then the top will come. Avoid the serial top callers, they are at best fools on a fools errand. They know that if they say the same thing often enough sooner or later they’ll be right and when the do they’ll get their get their moment of fame. Well I’m not interested in a moment of fame. I’m interested in making money. If I’d listened to such folks I would have been in cash three or four years ago and missed one of the best bull markets in history! I know I overuse this phrase but I can’t really emphasize it enough. The Trend is your Friend.  So will I sell when the downtrend finally arrives? You betcha!! I will not hesitate!! Those of you that have been with me since the beginning know that! We sold in 2000 and we sold 2007 and we’ll do it again this time. Our timing was perfect for the the last two bear markets . Will it be perfect again? I don’t know but I do know this. It doesn’t have to be perfect to ensure that I have more money than I would have had if I had not been invested. I’m not worried about it. I’ll keep putting my trust in our Heavenly Father and He will continue to guide my hand. Give Him all the Praise for He and He alone is worthy!

The days trading left us with the following results: Our TSP allotment gained +0.35%. For comparison, the Dow added +0.89%, the Nasdaq +0.68%, and the S&P 500 +0.67%. Praise God for another good day!

The weeks action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Sell. We are currently invested at 100/S. Our allocation is now +3.28% on the year not including the days results. Here are the latest posted results:

God bless, Scott