Good Evening, Do you remember what I said about the market reacting to a possible Trump presidency by selling off prior to the election due to uncertainty? The point is that when I mentioned this a few days ago that I also said that the market would assess the new president after and only after the election. I said that the market would decide on that day what it though about the new president and further that nobody new how the market would react. Well, the analysis was correct. Investors have now decided (surprise surprise) that some of Trump’s policies might be market friendly after all. The result is the nice rally that we have had the past few days that has caught most folks leaning the wrong way. Most but not all, because we are invested perfectly to take advantage of this bounce! Give God all the praise!! He has guided our group once again. Now does this mean that stocks will keep shooting up? No, investors will probably wake up and realize that their emotions got the best of them and do a little selling. However, I’m betting that stocks will have a net gain going into the end of the year.
The days continued rally left us with the following results: Our TSP allotment made another nice gain of +0.53%. For comparison, the Dow added +1.17%, the Nasdaq dropped -0.81%, and the S&P 500 was up +0.20%. Not a bad day unless you were invested in tech. President Elect Trump is viewed to be unfriendly to silicon valley……On the flip side of that, he is viewed as being very friendly to banks.
Trump bets blast Dow to new high, bank sector hits 2008 levels
The days action left us with the following signals: C-Buy, S-Buy, I-Sell, F-Sell. We are currently invested at 100/S. Our allocation is now +1.26% on the year not including the days gains. Here are the latest posted results:
| 11/09/16 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.1399 | 17.6451 | 29.7327 | 38.1786 | 24.1855 |
| $ Change | 0.0008 | -0.1738 | 0.3278 | 0.8059 | 0.0930 |
| % Change day | +0.01% | -0.98% | +1.11% | +2.16% | +0.39% |
| % Change week | +0.03% | -1.26% | +3.80% | +4.74% | +1.22% |
| % Change month | +0.05% | -1.09% | +1.86% | +2.35% | -0.33% |
| % Change year | +1.51% | +4.07% | +7.87% | +8.35% | +0.37% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 18.2461 | 24.0749 | 26.2069 | 27.8924 | 15.8207 |
| $ Change | 0.0281 | 0.0941 | 0.1598 | 0.2030 | 0.1354 |
| % Change day | +0.15% | +0.39% | +0.61% | +0.73% | +0.86% |
| % Change week | +0.57% | +1.28% | +1.93% | +2.27% | +2.62% |
| % Change month | +0.23% | +0.51% | +0.77% | +0.90% | +1.05% |
| % Change year | +2.66% | +3.73% | +4.56% | +4.97% | +5.29% |
Now lets take a look at the charts. All signals are annotated with green circles. If you click on the charts they will become larger.
C Fund: The C Fund generated an overall buy signal when the PMO passed up through it’s signal line. Take note of the V Shaped recovery in price.
S Fund: The S fund generated an overall buy signal when the PMO moved into a positive configuration by crossing back through it’s signal line. The five trading delay on executed the sell signal we had on the S Fund proved to be fruitful. I didn’t annotate it, but as you van plainly see, price has formed a V. The V shaped recovery that burned us so many times throughout the past 6 years is the main reason we place the five day delay on executing signals.
I Fund:
F Fund: With a possible interest rate increase on the near horizon it was another bad day for bonds.
As I mentioned at the top, God has brought us though the storm once again! Our task now is to monitor the charts for the next dip whenever that may occur. That’s all for tonight! Have a great evening!
