10/22/14

Good Evening,

The market was moving along nicely this morning. We were making money on a day that we should have been seeing some back filling after yesterday’s huge rally. Then, a handful of terrorists attack the Canadian Parliament and world markets head down? As if I didn’t already want them destroyed. Now, even more so. Not that the event isn’t serious. Not that it isn’t newsworthy, but what gives. How can a few terrorists effect the entire market? Are they destroying Wall Street??? Why do we run in fear? Why do we give them credibility? As with many things to do with the market, it just doesn’t make any sense. You know the market only goes down if we choose to sell. So why do we sell? The biggest reason is all the computer trading. The same reason we have had so many of these blasted V Shaped bounces. The machines are programmed to buy and sell based on certain phrases in the news. So, in the advent of this system of trading, certain phrases in the news result in the programs buying or selling. In my humble opinion, this type of trading should be banned. It isn’t good for the market at all. Of course, once the selling or buying starts, all the market players are forced to follow like sheep. SEC, ban or restrict this trading now! We are sick of it!!! As of the writing of this newsletter, our strategy remains the same in that we are going to remain positioned to take advantage of the upward trend that started a few days back. At this time, this event appears to be no more than an unnecessary bump in the road. The bottom line is that our indicators can predict many market related trends, but I have yet to discover an indicator that can predict a terrorist attack. It’s most unfortunate that we live in such times. With God’s help, we will deal with them……… Both TSP and AMP posted losses on the day. 

Wall St. ends lower after shooting at Canadian parliament

 

The day’s action left us with the following signals: C-Neutral, S-Buy, I-Neutral, F-Buy We are currently invested at 30/G, 70/S. Our allocation is now -5.70% on the year not not including the day’s results. Here are the latest posted results:
10/21/14
Fund G Fund F Fund C Fund S Fund I Fund
Price 14.5563 16.7284 25.4998 34.0664 24.2925
$ Change 0.0010 -0.0102 0.4903 0.7199 0.3432
% Change day +0.01% -0.06% +1.96% +2.16% +1.43%
% Change week +0.03% +0.05% +2.90% +3.31% +2.04%
% Change month +0.14% +1.47% -1.48% -0.01% -3.95%
% Change year +1.88% +6.27% +6.80% +1.18% -4.98%
  L INC L 2020 L 2030 L 2040 L 2050
Price 17.2266 22.3408 24.0553 25.4674 14.396
$ Change 0.0644 0.2084 0.2887 0.3531 0.2245
% Change day +0.38% +0.94% +1.21% +1.41% +1.58%
% Change week +0.57% +1.40% +1.80% +2.09% +2.35%
% Change month -0.17% -0.85% -1.12% -1.28% -1.54%
% Change year +2.44% +2.50% +2.54% +2.55% +2.37%
Lets take a look at the S Fund. It took the biggest hit for the day. (Chart courtesy of Stockcharts.com)
The S Fund gave up most of it’s gains from yesterday. It’s still in solid shape, but it doesn’t need any additional damage at this time.
1022
What we had went beyond just some healthy back filling. We’ll have to keep a close eye on developments tomorrow to see if the terrorist attack is enough to change the trend. Make no mistake our charts were correct as both of our allotments were up close to a percent at the time that news of the attack was released. Based on that fact, I am expecting the markets to bounce back when the smoke clears. Of course, that’s barring no ‘follow through’ terrorist attacks. Either way, we will ride this out as long as we have neutral or better signals. We bet the farm on the November/December rally. It will make us or break us for 2014. My strategy is based on my pre-terrorist attack analysis and I’m sticking to my guns. My faith is in God who will see us through these troubled waters. May we give praise to our Lord and Savoir who will see us through the storm! Have a nice evening and remember, Don’t sweat the small stuff and all stuff is small stuff when your Savior is Jesus!
God bless,
Scott8-)

 

 



Written By

Scott Grimes

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