Good Evening,
Within our system we have various quotes that we use to sum up what we’re about. Our most famous quote is “It’s not what you make but what you keep”. Tonight I am going to add a new one to our archives. Sometimes a simple expression can go a long way toward keeping you on the proper path and I think this saying is important as the market returns to normalcy. Here it is “Listen to your chart, not to your heart” . This week is a good example of why it is important not to get sucked into a bad trade by your emotions. Monday was a really bad day followed by one of the best days of 2014 on Tuesday. The market pundits proclaimed that the V-Shaped bounce had returned to again punish prudent defensive minded traders. After all, they had been crying wolf for some time. So, many traders piled on pushing stocks back up yet again. Our hearts told us that we should be in on this action, that we were being left behind, but our charts said other wise. We made the tough choice to follow our charts and not our hearts. The next day’s result was the worst trading day of 2014 and a fourth failed bounce. Now it is Thursday, the day after that horrendous day of trading, our hearts are saying go ahead get back into the market, you are being left behind…..but, our charts are saying not so fast. And the result? More downside, unprecedented given the past five years of action. Yes, we must listen to our charts and not our hearts, the charts are not powered by emotion and most of the time they are right! I keep thinking of that old song from the 70’s “I can see clearly now”. I have my own version…..”I can see clearly now, the FED is gone!” I say again, this downturn is what we need to make money!!!!!
10/09/14 | Prior Prices | ||||
Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
Price | 14.5449 | 16.6352 | 25.3207 | 33.0095 | 24.2177 |
$ Change | 0.0009 | -0.0009 | -0.5324 | -0.8027 | -0.5640 |
% Change day | +0.01% | -0.01% | -2.06% | -2.37% | -2.28% |
% Change week | +0.04% | +0.60% | -1.97% | -3.03% | -1.39% |
% Change month | +0.06% | +0.91% | -2.17% | -3.11% | -4.25% |
% Change year | +1.81% | +5.68% | +6.05% | -1.96% | -5.27% |
L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
Price | 17.1739 | 22.2074 | 23.8698 | 25.2345 | 14.2528 |
$ Change | -0.0747 | -0.2509 | -0.3487 | -0.4264 | -0.2732 |
% Change day | -0.43% | -1.12% | -1.44% | -1.66% | -1.88% |
% Change week | -0.34% | -0.97% | -1.28% | -1.51% | -1.71% |
% Change month | -0.47% | -1.45% | -1.88% | -2.19% | -2.52% |
% Change year | +2.12% | +1.89% | +1.75% | +1.61% | +1.35% |
Don’t be discouraged. So far this is nothing but healthy action that will reset the market and create a good entry point for us to take advantage of the next rally. Our job right now is to closely watch our charts for the bottom and subsequent upturn in this market. It may come soon and it may be a while, we must remain patient and we will make a nice profit when the time comes. May God continue to guide our hand! Give Him all the praise! Have a nice weekend. It’s going to be a rainy one here. It looks like I’ll stay in and watch some football so Go Cats, Go Herd, and Go Mountaineers!
See you Monday.
God bless,
Scott