Good Evening,
Another day, another reversal and yes we’re still in the zone…
Stocks mixed as Yellen speaks to Congress
The day’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 -3.44% on the year not including today’s results. Here are the latest posted results:
| 05/06/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.4038 | 16.2626 | 24.2871 | 33.4757 | 26.2881 |
| $ Change | 0.0009 | 0.0181 | -0.2189 | -0.4003 | 0.0777 |
| % Change day | +0.01% | +0.11% | -0.89% | -1.18% | +0.30% |
| % Change week | +0.03% | +0.04% | -0.70% | -1.18% | +0.24% |
| % Change month | +0.04% | +0.32% | -0.84% | -0.75% | +0.54% |
| % Change year | +0.82% | +3.31% | +1.73% | -0.58% | +2.83% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.0151 | 22.1227 | 23.8336 | 25.2387 | 14.2999 |
| $ Change | -0.0198 | -0.0656 | -0.0938 | -0.1182 | -0.0742 |
| % Change day | -0.52% | -0.12% | -0.30% | -0.39% | -0.47% |
| % Change week | -0.45% | -0.09% | -0.25% | -0.33% | -0.40% |
| % Change month | -0.34% | -0.05% | -0.18% | -0.25% | -0.31% |
| % Change year | +1.68% | +1.18% | +1.50% | +1.60% | +1.63% |
The C Funds close of 1878.21 leaves it still firmly entrenched in the trading zone of 1890 to 1840. Don’t expect anything to change until this and all major index charts break out of the trading range that they have been in since February. Here’s decision points latest analysis on the SPY: Just a reminder once again that the SPY is the Exchange Traded Fund (ETF) for the S&P 500. Pretty much what goes for it goes for the $SPX.
The trading range still rules, and volume is still below average. The rising trend line drawn from the February lows forms the bottom of a rising wedge, and we know that formation is most likely to resolve downward.
And I expect it to resolve downward as well. Topping is a process. It doesn’t just occur in one day. There’s usually plenty of time to react to the warning signs, many of which we have been pointing out. The main thing we are focusing on at this time is the aforementioned traded zone. Unless you are day trading, you’ve rode this horse about as far as it can go so you might as well get off until it’s rested and ready for another run and that is exactly what we’re doing. I expect we’ll be better off for it if this market corrects like it has the potential to do. You’ve got to figure that’s coming since many small cap stocks have already been discounted 40-50%. Not the thing you want your TSP account to do if you are close to retirement! That’s all for tonight. Have a nice evening.
God bless,
Scott 
