Good Evening,
The market rose again today displaying some post-FED cheer and reacting to positive unemployment data. The Dow and S&P both hit new record highs and the Nasdaq had another solid day. Both TSP and AMP posted moderate gains.
Good News on Economy Pushes Stocks to Record Highs
The day’s action left us with the following signals: C-Buy, S-Neutral, I-Sell, F-Sell. We are currently invested at 40/C, 60/S. Our allocation is now -3.85% on the year not including today’s gains. Here are the latest posted results:
| 09/17/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.5255 | 16.4071 | 26.2507 | 35.4208 | 25.9232 |
| $ Change | 0.0008 | -0.0111 | 0.0346 | 0.0481 | -0.0857 |
| % Change day | +0.01% | -0.07% | +0.13% | +0.14% | -0.33% |
| % Change week | +0.03% | +0.04% | +0.81% | -0.27% | -0.25% |
| % Change month | +0.10% | -1.06% | +0.01% | -1.33% | -1.42% |
| % Change year | +1.67% | +4.23% | +9.95% | +5.20% | +1.40% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.3116 | 22.7681 | 24.6686 | 26.2294 | 14.9027 |
| $ Change | 0.0007 | -0.0008 | -0.0007 | 0.0000 | -0.0006 |
| % Change day | +0.00% | +0.00% | +0.00% | +0.00% | +0.00% |
| % Change week | +0.10% | +0.18% | +0.21% | +0.22% | +0.24% |
| % Change month | -0.10% | -0.34% | -0.46% | -0.55% | -0.62% |
| % Change year | +2.94% | +4.46% | +5.16% | +5.62% | +5.97% |
Here’s what the SPY looked like today. Chart courtesy of Stockcharts.com with analysis by Decision Point.
“Price pushed up against overhead resistance today, and again, it did not push past it. The PMO has started rising again with the rally of the last three days. There is a good chance we will get a positive crossover that will generate a PMO BUY signal. Volume was average.”
“Conclusion: All of our indicators are now looking bullish, my main concern is that they are late to the party. Yet looking at another all-time high on the SPX and Dow among others it is hard to be bearish. Price hasn’t been able to penetrate overhead resistance and it is trading inside a bearish ascending wedge which intimates price should eventually pull back. Ultimately, we continue to be on an intermediate-term Trend Model BUY signal and indicators are getting bullish. As I said yesterday, I’m not ready to bet against the market but I’m still concerned about the possibility of a trip down to support at the bottom of the wedge.”
Our analysis was right on the money. Now we must start watching the charts for the next major event. Our focus must be on the charts of the funds we are invested in. We must review them every day to detect the first sign of weakness when it comes. As I mentioned about a month ago, seasonality will start to be in our favor starting the first week in November. That said, the closer we get to that date, the more leash we’ll give this dog to run. God continues to favor our group. Be sure to tell Him thanks and Give Him some praise! Have a great evening.
God bless,
Scott
