Good Evening,
Today was a day when nothing worked. Well, almost nothing… I had one bond fund that managed a gain… The FED hinted at an interest rate hike and traders hit the exits. The dip buyers did step in near the end of the day to take us off the lows. Perhaps tomorrow’s trading will give us some follow through on that buying…
Stocks slump on Yellen rate hike remark
The day’s action left us with the following signals: C-Neutral, S-Neutral, I-Neutral, F-Neutral. The signals kind of reflect the market as a whole. It’s on the fence and ready to lean either way. We are currently invested at 36/C, 42/S, 22/I. Our allocation is -.025% on the year. Here are the latest posted results:
| 03/18/14 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.3584 | 16.0731 | 24.2999 | 35.2087 | 25.3494 |
| $ Change | 0.0009 | 0.0171 | 0.1749 | 0.4083 | 0.1649 |
| % Change day | +0.01% | +0.11% | +0.72% | +1.17% | +0.65% |
| % Change week | +0.03% | -0.11% | +1.69% | +1.79% | +1.29% |
| % Change month | +0.11% | -0.10% | +0.80% | +1.11% | -2.14% |
| % Change year | +0.50% | +2.11% | +1.78% | +4.57% | -0.84% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 16.956 | 22.0459 | 23.7774 | 25.2156 | 14.2887 |
| $ Change | 0.0283 | 0.0918 | 0.1269 | 0.1565 | 0.0996 |
| % Change day | +0.17% | +0.42% | +0.54% | +0.62% | +0.70% |
| % Change week | +0.33% | +0.83% | +1.06% | +1.22% | +1.37% |
| % Change month | +0.10% | +0.03% | +0.03% | +0.04% | -0.01% |
| % Change year | +0.83% | +1.15% | +1.36% | +1.54% | +1.60% |
They will definitely slip after today’s results are posted. Here is what the selling looked like in the S&P 500:
I believe the market will snap back, but either way, we will continue to watch the charts and react to the action that is before us. We knew it was going to be a year of repeatedly bouncing off of overhead resistance so none of this should surprise us. The real test will be when the FED money is all gone. According to Ms. Yellen that will be this fall. As I have always said, that’s where the rubber will meet the road. Continue to pray that God will guide our hand, that has been and always will be the source of our success. May He continue to bless your trades!
God bless,
Scott
