Good Evening,
Does anyone really know where this market is going? Two reversals in one day, now that’s volatility. Depending on what time of the day you checked the market you were either looking like a genius or you were looking not so smart.
Stocks finish higher on turnaround Tuesday
The day of reversals left us with the following signals: C-Sell, S-Sell, I-Neutral, F-Buy. We are currently invested at 08/G, 92/F. Our allocation is now -3.91% on the year, not including today’s results. Here are the latest posted results:
| 04/14/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.3831 | 16.1784 | 23.7902 | 33.0772 | 25.4922 |
| $ Change | 0.0029 | -0.0146 | 0.1939 | 0.1238 | -0.0305 |
| % Change day | +0.02% | -0.09% | +0.82% | +0.38% | -0.12% |
| % Change week | +0.02% | -0.09% | +0.82% | +0.38% | -0.12% |
| % Change month | +0.09% | +0.70% | -2.14% | -4.35% | -1.03% |
| % Change year | +0.67% | +2.77% | -0.36% | -1.76% | -0.28% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 16.9165 | 21.8473 | 23.4707 | 24.8094 | 14.0276 |
| $ Change | 0.0190 | 0.0534 | 0.0718 | 0.0864 | 0.0539 |
| % Change day | +0.11% | +0.25% | +0.31% | +0.35% | +0.39% |
| % Change week | +0.11% | +0.25% | +0.31% | +0.35% | +0.39% |
| % Change month | -0.32% | -1.04% | -1.41% | -1.69% | -1.93% |
| % Change year | +0.59% | +0.24% | +0.05% | -0.10% | -0.25% |
Here’s what the S&P 500 looked like today:
The C Fund as the whole market experienced a wide trading range today closing near its highs on average volume. Worth noting is that it was repelled at resistance near the 1820 mark (see the circle below). The next level of overhead resistance will be found around the 1850 level should the market continue to rise. If it can eclipse that mark it will more than likely retest the previous resistance level at the 1890 mark in an attempt to set new highs. Should it turn down again and successfully break through resistance at the 1820 mark the target level for the correction would be just below the 1760 level. That is still the outcome that I favor. Although, that is only speculation and I will react to whatever the charts send my way.
While the market has made a move to the upside, the short term down trend has not been broken just yet and we must continue to respect it until it is. I think we will see more selling, but will not be surprised if we already found the bottom as crazy as things have been. Who knows, we may get squeezed again. I don’t think so, but worth noting is the fact that we have yet to break the string of V-shaped reversals going back over two years. Here are the most dangerous words in the market and I can’t believe I’m saying them….”It just feels different this time”. Yes, we ended in the green today, but there were some moments of doubt in between and that doubt still lingers for me. That’s all for tonight. Have a nice evening!
God bless,
Scott
