Good Evening, Yesterday we briefly discussed how Facebook (FB) put pressure on the entire market. Well today that pressure made the dominoes start to fall after Intel (INTC) and Twitter (TWTR) disappointed with their reports. While I think the scorn on Intel was justified, I think it was overblown on Twitter. Way overblown. Either way it is what it is. Tech went down and eventually brought the whole market down hard with it. You can read the particulars in the Link below. The message I want to get across is that if you held other stocks or funds that went down, understand that they aren’t broken. Facebook and Intel are broken, but not your stocks or funds. The sky is not falling! It’s just a combination of some bad news on a Friday afternoon during slow summer trading. With the exception of a few stocks such as the those noted above, earnings haven’t just been good, they have been stellar. The economy is great too. One needs to look no further than today’s GDP report to tell that. Intel and Twitter’s disappointing results overshadowed data from the Commerce Department showing the U.S. economy grew at a 4.1 percent annualized rate in the second quarter, its fastest pace in nearly four years. If you sold a good stock or fund because of a few broken stocks and not a broken market then you panicked. As I often say in this blog, panic is not a strategy unless of course you are intentionally trying to lose money! Two points you need to take away from this blog. #1. The market will come back. It is not broken. The charts will tell you when and if it is. And #2. We are in the slow summer trading season. Don’t expect any rocket ships but remember, it will come back. While nothing is for sure, I will be a little more than surprised it that’s not the case. Put it this way. You can do what you want but I’m not selling any of mine just yet. You’ll be the first to know when I do!!!!
The days trading left us with the following results: Our TSP allotment dropped -1.51%. For comparison, the Dow fell -0.30%, the Nasdaq -1.46%, and the S&P 500 -0.66%. It was a rough day for everyone.
Tech stocks weigh on Wall Street
The weeks action left us with the following signals: C-Buy, S-Neutral, I-Neutral, F-Sell. We are currently invested at 100/S. Our allocation is now +6.86% on the year. Here are the latest posted results:
| 07/27/18 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.7869 | 17.8306 | 40.0656 | 52.2244 | 30.9216 |
| $ Change | 0.0012 | 0.0153 | -0.2652 | -0.7987 | 0.1417 |
| % Change day | +0.01% | +0.09% | -0.66% | -1.51% | +0.46% |
| % Change week | +0.06% | -0.17% | +0.61% | -1.56% | +1.34% |
| % Change month | +0.21% | -0.01% | +3.80% | +1.50% | +2.72% |
| % Change year | +1.59% | -1.57% | +6.53% | +7.75% | +0.21% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.9643 | 27.5572 | 31.7929 | 34.7489 | 20.1969 |
| $ Change | -0.0155 | -0.0365 | -0.0848 | -0.1131 | -0.0767 |
| % Change day | -0.08% | -0.13% | -0.27% | -0.32% | -0.38% |
| % Change week | +0.14% | +0.19% | +0.31% | +0.34% | +0.37% |
| % Change month | +0.79% | +1.13% | +1.95% | +2.27% | +2.54% |
| % Change year | +2.12% | +2.48% | +3.44% | +3.79% | +4.13% |
