Good Afternoon,
Well it’s over early for this week with only a half day of trading today and the 4th of July holiday tomorrow. The Dow went over 17,000 for the first time. The S&P set a new record creeping a little closer to 2000 and we made small gains both in TSP and on the street. All that said, my eyes are on Monday when all the traders return to the office. The action today was really quite mild when you consider the surprise news that 280,000 new jobs were created in June and the unemployment rate dropped to 6.1% (which we anticipated in yesterday’s newsletter). Hopefully we will get a nice pop on Monday as many market players who took the week off and will return from the holiday.
NEW YORK (CNNMoney)
U.S. stock markets closed at 1 p.m. Thursday, but they got the fireworks going early. The Dow finally hit 17,000!
The week’s trading left us with the following signals: C-Buy, S-Buy, I-Buy, F-Neutral. The I Fund generated a buy signal and the F fund slipped to Neutral demonstrating that money is moving back into equities at least for now. We remain invested at 25/C, 75/S. Our allocation is now -1.86% for the year not including today’s returns. Here are the latest posted results.
| 07/02/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.4558 | 16.339 | 25.7833 | 35.9184 | 27.1086 |
| $ Change | 0.0009 | -0.0461 | 0.0186 | -0.1622 | 0.0589 |
| % Change day | +0.01% | -0.28% | +0.07% | -0.45% | +0.22% |
| % Change week | +0.03% | -0.40% | +0.73% | +0.86% | +1.23% |
| % Change month | +0.01% | -0.55% | +0.76% | +0.44% | +0.93% |
| % Change year | +1.18% | +3.80% | +7.99% | +6.68% | +6.04% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.2525 | 22.7815 | 24.7263 | 26.3245 | 14.9842 |
| $ Change | -0.0011 | 0.0010 | -0.0006 | -0.0032 | -0.0008 |
| % Change day | -0.01% | +0.00% | +0.00% | -0.01% | -0.01% |
| % Change week | +0.17% | +0.46% | +0.58% | +0.67% | +0.77% |
| % Change month | +0.13% | +0.37% | +0.47% | +0.54% | +0.62% |
| % Change year | +2.59% | +4.52% | +5.40% | +6.00% | +6.55% |
Here’s what the I Fund looked like today as it generated a new buy signal. All charts are courtesy of stockcharts.com.
The PMO recovered from its negative crossover while the 5 EMA remains well above the 20 EMA which has a lot of day light between it and the 50 EMA for a solid buy signal. Of course the PMO is always subject to whiplash…
It looks like with God’s help that we are in the right place as money continues to flow into equities from precious metals and bonds. How long this will last is anyone’s guess so enjoy it while you can. That’s all for this week. Go out and enjoy the fireworks with your family!
God bless,
Scott
