Good Evening,
The market had another moderately decent day today, reacting positively to Janet Yellen’s remarks before the Senate along with some positive retail sector earnings reports.
S&P 500 finishes at record closing high
The days action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Buy. We are currently invested at 28/C, 34/S, 38/I. Our allocation is -0.73%. in 2014. Here are the latest posted results:
| 02/26/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.3406 | 16.063 | 23.9184 | 34.7102 | 25.7575 |
| $ Change | 0.0008 | 0.0181 | 0.0049 | 0.1506 | -0.1636 |
| % Change day | +0.01% | +0.11% | +0.02% | +0.44% | -0.63% |
| % Change week | +0.03% | +0.37% | +0.51% | +1.17% | +0.10% |
| % Change month | +0.16% | +0.45% | +3.76% | +5.09% | +4.99% |
| % Change year | +0.38% | +2.04% | +0.18% | +3.09% | +0.76% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 16.913 | 21.9619 | 23.667 | 25.082 | 14.2109 |
| $ Change | -0.0008 | -0.0098 | -0.0117 | -0.0117 | -0.0090 |
| % Change day | +0.00% | -0.04% | -0.05% | -0.05% | -0.06% |
| % Change week | +0.15% | +0.30% | +0.38% | +0.45% | +0.49% |
| % Change month | +1.00% | +2.37% | +2.99% | +3.43% | +3.86% |
| % Change year | +0.57% | +0.76% | +0.89% | +1.00% | +1.05% |
That I Fund needs to pick it back up…..
We’re still pressing up against resistance. We did break through slightly today (see my chart), but it wasn’t anything significant.
Carl Swenlin:Price is still pressed up against overhead resistance. The short-term rising trend line has become irrelevant.
The chart below gives us a great look at market conditions in three time frames by tracking the percentage of stocks above their 20EMA (short-term), 50EMA (medium-term), and 200EMA (long-term). What stood out to me was how strength is fading in all time frames. After a short correction in January, prices are once again challenging record highs, but the indicators are all falling short of the levels they hit at the previous price high.
Today’s C Fund Chart.The resistance is at the 1850 level:
We’ll be watching to see if we can get any significant follow through in the coming days. If so, we would be set up well for another leg up in the month of March. I will add that March is technically the best month for the market out of the year. For those of you who are wondering, December is the second best. That is were the old saying “go away in May” came from. Some folks I know will sell in May and come back in December. They actually do that. It’s a nice way to avoid losses, problem is that some years it is also a nice way to avoid gains. As I have said many times, you have to play the pricing action before you. All in all, God blessed us with a decent day so I won’t complain. We may have to tweak our allocation a little over the coming weeks, but barring no surprises, everything should be fine on the home front. That’s all for tonight. Have a great evening!
God bless,
Scott
