Good Evening,
Oh yeah, it was good to be a bear today. The charts called this one and for what seems like a rare occasion in 2014, we were in the right place…
Stocks end week in red as tech gets hammered
The week’s trading left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Buy. We are currently invested at 08/G, 92/F. Our allocation is now -3.85% on the year, not including today’s results. Here are the latest posted results:
| 04/25/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.3934 | 16.1888 | 24.2232 | 33.5103 | 25.9018 |
| $ Change | 0.0009 | 0.0163 | -0.1974 | -0.5470 | -0.0862 |
| % Change day | +0.01% | +0.10% | -0.81% | -1.61% | -0.33% |
| % Change week | +0.05% | +0.38% | -0.06% | -0.83% | +0.42% |
| % Change month | +0.16% | +0.77% | -0.36% | -3.10% | +0.56% |
| % Change year | +0.74% | +2.84% | +1.46% | -0.48% | +1.32% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 16.9837 | 22.0453 | 23.736 | 25.1273 | 14.2292 |
| $ Change | -0.0257 | -0.0898 | -0.1280 | -0.1611 | -0.1028 |
| % Change day | -0.72% | -0.15% | -0.41% | -0.54% | -0.64% |
| % Change week | -0.05% | +0.05% | +0.02% | -0.01% | -0.04% |
| % Change month | -0.52% | +0.07% | -0.14% | -0.29% | -0.43% |
| % Change year | +1.18% | +0.99% | +1.15% | +1.18% | +1.18% |
This week’s top is lower than the one earlier in the month. Now we need to see a lower low to declare a declining trend. The PMO has topped and the rising trend line drawn from the February low defines the bottom of a rising wedge pattern, a pattern we normally expect to resolve downward.
As I said yesterday, upper resistance has been tested and now we are on the way back down. Lower resistance for the C Fund is at 1860. If that is broken, then you can be pretty sure that we have a real correction on our hands. I expect this resistance level to be breached in May. For now, I am very comfortable with our allocation. If we can get a real correction we should be able to make some decent money on the way back up. That’s all for this week. Have a nice weekend!
God bless,
Scott
