Good Evening.
Well I’m back with 16 GB’s of Ram. Unfortunately, it enabled me to read all the bad news that took place today even faster…… We were making a profit this morning until the news about the Malaysian Airliner and the “Ground invasion in Israel” hit. The big question is how long will it take for the market to shrug it off? It’s hard to say, but one thing is for sure, the market is news driven at this time.
NEW YORK (CNNMoney)
Markets went from bad to worse Thursday as Israel launched a ground offensive Gaza shortly after a passenger jet crashed in conflict-ridden Ukraine.
The day’s action left us with the following signals: C-Neutral, S-Neutral, I-Neutral, and F-Buy. I shouldn’t have to tell you that the buy signal generated by the F Fund today indicates that money is now flowing into safe havens. The Gold market today was another indicator of that trend. We are currently invested at 25/C, 75/S. Our allocation is now -3.56% on the year not including today’s results.
| 07/16/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.4683 | 16.3927 | 25.8906 | 35.0399 | 26.8233 |
| $ Change | 0.0009 | 0.0031 | 0.1111 | -0.0173 | 0.2030 |
| % Change day | +0.01% | +0.02% | +0.43% | -0.05% | +0.76% |
| % Change week | +0.03% | -0.14% | +0.72% | -0.25% | +1.21% |
| % Change month | +0.10% | -0.22% | +1.18% | -2.02% | -0.13% |
| % Change year | +1.27% | +4.14% | +8.44% | +4.07% | +4.92% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.2539 | 22.7364 | 24.6471 | 26.2114 | 14.9067 |
| $ Change | 0.0162 | 0.0536 | 0.0716 | 0.0843 | 0.0548 |
| % Change day | +0.09% | +0.24% | +0.29% | +0.32% | +0.37% |
| % Change week | +0.15% | +0.37% | +0.45% | +0.49% | +0.57% |
| % Change month | +0.14% | +0.17% | +0.15% | +0.11% | +0.10% |
| % Change year | +2.60% | +4.32% | +5.06% | +5.55% | +6.00% |
I am going to show you the S Fund today. It is getting close to a sell signal using our current set of indicators.
Price for this chart is now trading below its 50 EMA, which is bearish. Also of concern is that the 5 EMA that we have been using as a short term indicator is now nearing a negative crossover of the 50 EMA and will generate a sell signal in the next few days if the situation doesn’t improve. Thirdly, the PMO crossed over its 20 EMA several days ago and is in a free fall at this time. There are a few more indicators that I watch on my personal charts as well. If none of them improve and the 5 EMA generates the above mentioned sell signal, I will strongly consider selling this fund. A lot of technicians will hold this chart until the 20 crosses through the 50 EMA, but I fear that the damage will be too deep by that time. Nevertheless, considering this markets propensity for turning around that is something we must consider as we have already whipsawed three times in 2014. Hopefully, we will get a bounce before we are forced to make that decision.
I have said repeatedly, this is a difficult market and it isn’t getting any easier to deal with. That’s all for tonight. Have a great evening and may God continue to bless your trades.
Scott
