Good Evening,
The sell off continues, no real damage yet, but it is enough that we should take notice. The action just feels a lot different than it did in 2013…
Stocks: How low can you go?
Well, it may well earn 6.5%, but it’ll be painful getting there. Today is a great example of that…. Today’s selling left us with the following signals: C-Neutral, S- Neutral, I-Buy, F-Neutral. We’re still invested at 36/C, 42/S, 22/I, but that could change with some more selling. Our allocation is now -1.22% on the year not including today’s results. Here are the latest posted results:
| 04/04/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.3736 | 16.0862 | 24.225 | 34.1476 | 25.8286 |
| $ Change | 0.0009 | 0.0541 | -0.3066 | -0.6792 | -0.0533 |
| % Change day | +0.01% | +0.34% | -1.25% | -1.95% | -0.21% |
| % Change week | +0.04% | +0.11% | +0.44% | +0.29% | +0.88% |
| % Change month | +0.03% | +0.13% | -0.36% | -1.25% | +0.28% |
| % Change year | +0.61% | +2.19% | +1.47% | +1.42% | +1.03% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 16.9653 | 22.0469 | 23.7573 | 25.1701 | 14.261 |
| $ Change | -0.0328 | -0.1164 | -0.1660 | -0.2088 | -0.1335 |
| % Change day | -0.19% | -0.53% | -0.69% | -0.82% | -0.93% |
| % Change week | +0.15% | +0.32% | +0.39% | +0.43% | +0.48% |
| % Change month | -0.04% | -0.14% | -0.20% | -0.26% | -0.29% |
| % Change year | +0.88% | +1.15% | +1.27% | +1.35% | +1.41% |
The S Fund took an absolute beating again today. Lets take a look at it.
S Fund: Remember when I said that the S Fund was great up and bad down? This is what I was talking about. Small caps always take a beating on the way down. It’s kind of like taking the escalator up and jumping out the window going back down. How many of you are still 100/S??? The S Fund took its second triple digit loss in a row today as small caps suffered greatly in the sell off. It is sustaining a very bad crossover in the PMO. Today made the 2nd day that the fund traded below its 50 EMA. Today’s results were the worst since the mild dip we suffered in January. Nothing serious yet, but getting there quick! The serious damage will occur if the 20 EMA crosses down through the 50 EMA. I will take a look at selling when the 5 EMA crosses though the 20 EMA. Also worth noting is the fact that the volume increased during the past three days of selling. That is not a good sign!
We’ll hang in there to see it we get another bounce as we did in January. If you look on the above mentioned chart at the end of January you’ll notice that we haven’t corrected now as much yet as we did then and we all know what happened to anyone that shorted that bounce because we were one of them. That said, you have to buy the insurance policy sooner or later because the one time that you don’t buy it, you will surely need it, which will cost you a lot of money. Bottom line is we’ll sell again if we have to. Nevertheless, we will wait as long a possible before we do to avoid getting squeezed for a second time in 2014. That’s all for tonight. Keep praying, God will see us through this bout of selling as he has always done. May He continue to bless your trades.
Have a nice evening!
Scott
Go Cats!! Hang number nine!!!!!
