Good Evening, Today it was just like the old days. The markets biggest stock by market cap rallied and brought the rest of the market with it. As if I even have to tell you what the stock is…. it is Apple (AAPL). Most of us that trade equities know that Apple is much more than a cell phone maker but time and time again it gets judged by whatever news comes out regarding it’s sales of cell phones or about the suppliers of components needed to build I phones. Invariably, some report will come out about an Apple suppliers guidance being bad or cell phone sales being bad in China or something of the such and this fabulous company gets knocked down for no good reason. Yes it is much more than a cell phone maker. It is a marketer of multiple quality consumer goods with a large and growing service revenue. Buying an Apple product is just the beginning of the experience. Any of you ever heard about Apple Music?? That’s just one example of the many forms of income that this company has. Most of us have been saying this for a long long time but I guess it takes Warren Buffet to wake investors up about the potential that this great American company that is now leading the race to become the first corporation with a Trillion dollar market cap. Yep, it’s just like the old days. So goes Apple, so goes the market and that ain’t all bad!
The days rally left us with the following results: Our TSP allotment posted at gain of +0.52%. For comparison, the Dow added +0.80%, the Nasdaq +0.89% and the S&P 500 +0.94%. For those of you wondering about the under performance of the S Fund the past two sessions, don’t worry! If you are invested in the S Fund you need to be patient. The performance of the S fund is tied to the value of the dollar which has diminished in the past few days. When the dollar is cheaper multinational companies do better as the currency exchange rate is better. Conversely when the dollar strengthens smaller companies that don’t do business abroad thrive. Of course those are the companies that make up the S Fund as we have often noted. A review of the chart for the dollar tells me that there is a high probability that it will resume it’s upward trend. If that is the case you probably want to be invested in the S Fund. Also I would be amiss not to add that interest rates are moving up and higher interest rates are synonymous with a stronger dollar…..
The days action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now +3.25% on the year. Here are the latest posted results:
| 05/10/18 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.6901 | 17.6967 | 38.5477 | 50.4602 | 31.2238 |
| $ Change | 0.0012 | 0.0325 | 0.3662 | 0.2539 | 0.1025 |
| % Change day | +0.01% | +0.18% | +0.96% | +0.51% | +0.33% |
| % Change week | +0.05% | -0.06% | +2.28% | +2.39% | +0.80% |
| % Change month | +0.08% | -0.14% | +2.90% | +3.71% | +0.29% |
| % Change year | +0.96% | -2.31% | +2.49% | +4.11% | +1.19% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.7693 | 27.2355 | 31.261 | 34.1 | 19.7865 |
| $ Change | 0.0314 | 0.0690 | 0.1378 | 0.1761 | 0.1147 |
| % Change day | +0.16% | +0.25% | +0.44% | +0.52% | +0.58% |
| % Change week | +0.40% | +0.64% | +1.14% | +1.34% | +1.53% |
| % Change month | +0.49% | +0.78% | +1.38% | +1.63% | +1.85% |
| % Change year | +1.12% | +1.28% | +1.71% | +1.86% | +2.01% |
F Fund: The F Fund generated an overall neutral signal when the MACD moved into a positive configuration. A neutral signal requires two indicators to be in a positive configuration.
Nothing new to add here. We just need to keep monitoring the S Fund for it’s performance verses the other TSP Funds. We always want to ensure that we remain in the best fund or funds. Have a nice evening and may God continue to bless your trades!
