Good Evening, Recently, it’s all been about China and Oil. Again, that was the case this morning as oil and the market both went up. But, then the Fed made their announcement and the market totally reversed course resulting in triple digit losses in all the major indices. They left interest rates alone and made their statement more dovish. However, the market didn’t think the statement was dovish enough. While the Fed indicated that the timing of future rate increases would be data dependent, that simply wasn’t enough to satisfy Mr. Market. The market wanted the Fed to say exactly what they were going to do and when they were going to do it. That simply just wasn’t going to happen. The Fed would be painting themselves in a corner if they did that. They would be basing their decision on future conditions that are unknown to them at this time. It was a no win situation. They did the only the they could do. The important thing to know about all this is that the charts never indicated that the current uptick was anything more than an oversold bounce in a larger downtrend.

The days yoyo action left us with the following results: Our TSP allotment was steady in the G Fund while the Dow lost -1.38%, the Nasdaq -2.18%, and the S&P 500 -1.09%.

Wall Street sinks after Fed fails to impress

The days action left us with the following signals: C-Sell, S-Sell, I-Sell, F-Buy. We are currently invested at 100/G. Our allocation is now +0.16% on the year not including the days results. Here are the latest posted results:

 Lets take a look at the charts: (All signals annotated with Green Circles) If you click on the charts they will become larger!

 C Fund: Trading sideways. Ready to test support at 185.

S Fund: Same as the C Fund…..

I Fund: The I Fund held up the best of our equity based funds. It’s strength was reflected by the MACD which moved into a positive configuration. I’m not getting excited though. This chart is totally upside down as evident by the shortest term EMA being on the bottom. It’s going to take a lot of work to improve this as well as our other equity based charts to a buy signals!

F Fund: It’s still a buy and it’s still working. It will continue to do so as long as the Fed doesn’t raise rates. A strong SCTR of 95.4 supports this analysis.

 We’re still heading down. Nobody knows how deep our how long. We need to continue to keep an eye on the charts. They, not the media, will tell us when it’s time to move. That’s all for tonight. Have a great evening! 

 

 God bless, Scott

 

***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.

 

 

I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 

 

If you would like to receive more information about this introduction, please feel free to contact me at  [email protected].