Good Evening,
Like I said… was anybody listening? One day does not make a down trend, but we may be getting ready to test lower resistance at (S&P 500) 1840 and I wouldn’t bet against it being broken. If not this time, then eventually, we will punch through and get our “real correction”. As far as I’m concerned, this market is in correction. It just hasn’t shown on the major indices yet. This is a really good time to play defense. Is anybody listening???
The day’s selling left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Buy. We are currently invested at 08/G, 92/F and believe me, it was the best place to be today. The S-Fund fell the most at -1.14%. Remember what I said. The S fund is like taking the elevator up and jumping out the window to get back down. Our allocation is now -3.54% on the year, not including today’s results. Here are the latest posted results:
| 05/05/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.4029 | 16.2445 | 24.506 | 33.876 | 26.2104 |
| $ Change | 0.0029 | -0.0119 | 0.0475 | 0.0001 | -0.0143 |
| % Change day | +0.02% | -0.07% | +0.19% | +0.00% | -0.05% |
| % Change week | +0.02% | -0.07% | +0.19% | +0.00% | -0.05% |
| % Change month | +0.03% | +0.21% | +0.05% | +0.44% | +0.24% |
| % Change year | +0.81% | +3.19% | +2.64% | +0.61% | +2.53% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.0349 | 22.1883 | 23.9274 | 25.3569 | 14.3741 |
| $ Change | 0.0052 | 0.0112 | 0.0140 | 0.0160 | 0.0098 |
| % Change day | +0.07% | +0.03% | +0.05% | +0.06% | +0.06% |
| % Change week | +0.07% | +0.03% | +0.05% | +0.06% | +0.06% |
| % Change month | +0.17% | +0.07% | +0.11% | +0.14% | +0.16% |
| % Change year | +2.21% | +1.30% | +1.80% | +2.00% | +2.11% |
Today’s close in the S&P 500 of 1867.72 puts us right back in the middle of our zone. Here’s yesterday’s SPY:
The bears can’t seem to get any traction, but the bulls are having trouble with overhead resistance. Volume was very low.
Nothing has changed, I still expect a greater pullback sometime in May. I noticed that a lot of folks were shocked that the dip buyers didn’t show up. Remember, as I have noted many times, the endless supply of Fed Money is running out. We know what is going to happen. There’s just that little detail of the time. We will continue to play defense until this market corrects, bottoms, and starts back up. We will then reenter the equity market when we have confirmed buy signals in our equity based funds. Many traders don’t know how to handle this return to normal trading. I do and with God’s help I even welcome it. This year is not over. I will remind you all that he has never let this group down. Give Him the praise!!!! That’s all for tonight. Have a nice evening. God bless, Scott
