Good Evening, Mama said there’d be days like this. Today was one of those days when there was nowhere to run and nowhere to hide. President Trump threatened a new round of sanctions and tariffs to prevent China from stealing intellectual and technical property from the US. Also, the administration demanded that China open there economy to the US. Currently, US companies have to partner with Chinese companies to invest there. The Trump administration contends that this requirement is just another way for China to get their hands on US intellectual property. Frankly, I must admit that is true. In addition he threatened Europe with new tariffs unless they leveled the playing field there. Namely their tariff on US automobiles. Folks I absolutely don’t want a trade war. It is costing me a lot of money! As a result, I decided to look into trade between the US and China, Europe, Mexico and Canada. Looking at this purely from an economic standpoint (I do not endorse political candidates or parties on this website) I found the trade to be extremely unfair and one sided came away wondering why the US ever allowed this to happen in the past. I really don’t think this problem is going away. We’ll just have to keep a close eye on our charts and manage our positions carefully.
The days selloff left us with the following results: Our TSP allotment dropped -1.62%. Owe, that hurt! The major indices didn’t really fare any better. The Dow lost -1.33%, the Nasdaq -2.09%, and the S&P 500 -1.37%. No getting around it. It was a rough day everywhere!
The days action left us with the following signals: C-Neutral, S-Neutral, I-Sell, F-Neutral. We are currently invested at 100/S. Our allocation is now +7.64% on the year not including the days results: Here are the latest posted results:
| 06/22/18 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.7433 | 17.7715 | 39.1093 | 52.6066 | 30.4219 |
| $ Change | 0.0012 | -0.0043 | 0.0738 | -0.0104 | 0.2546 |
| % Change day | +0.01% | -0.02% | +0.19% | -0.02% | +0.84% |
| % Change week | +0.05% | -0.01% | -0.87% | -0.20% | -0.93% |
| % Change month | +0.17% | -0.44% | +1.95% | +3.12% | -0.16% |
| % Change year | +1.31% | -1.90% | +3.99% | +8.54% | -1.41% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.8492 | 27.3577 | 31.4321 | 34.3049 | 19.9164 |
| $ Change | 0.0150 | 0.0333 | 0.0677 | 0.0869 | 0.0570 |
| % Change day | +0.08% | +0.12% | +0.22% | +0.25% | +0.29% |
| % Change week | -0.12% | -0.23% | -0.46% | -0.55% | -0.63% |
| % Change month | +0.40% | +0.57% | +0.94% | +1.09% | +1.24% |
| % Change year | +1.53% | +1.74% | +2.26% | +2.47% | +2.68% |
As of this time we still have a solid neutral signal for the S Fund. There is no reason to take any action. Our task is to monitor our chart closely for any hint of a sell signal. As usual, it is best not to sell unless it is necessary to sell. Even though we anticipate more downside it would be panic just to sell on that anticipation and PANIC is not a strategy. Our strategy is always the same. We never have to guess at what we are doing. When and if our chart tells us to sell we will sell. Not before then and especially not because we are panicked! That’s all for today. Remember that God will continue to guide our hand just as he always has as long as we seek Him. Have a nice evening and I’ll see you tomorrow.
