12/05/17

Good Evening, The market seesawed a little bit this morning and then sold off in tandem in the afternoon. I’ll be honest. I’m really not sure why it did what it did. The action is definitely a change in the character of the market. I just don’t know what to make of it. Right now I’m going to chalk it up to consolidation before the Santa Rally period or perhaps a pause while market players wait to see the final tax bill. Either way we’ll just have to keep an eye on our charts and react to whatever we see come before us. I wish I had a good explanation for this one but I have to be honest and say it caught me by surprise.

I had a lot of questions about the current sector rotation so I’ll do my best to explain it in a brief manner.  The current rotation is really simple. There is not a lot of new money coming into the market so big fund managers are selling tech to buy domestic stocks that will benefit from a lower corporate tax rate. They’re taking their profits from tech and spending them in another area to hopefully make more profits. That’s it. Plain and simple……

The days trading left us with the following results: Our TSP allotment dropped -0.79%. For comparison, the Dow lost -0.45%, the Nasdaq -0.19%, and the S&P 500 -0.37%.

 

Tech rally burns out, leaves Wall Street lower

The days action left us withe the following signals: C-Buy, S-Buy, I-Neutral, F-Neutral. We are currently invested at 100/S. Our allocation is now +17.24% for the year. Here are the latest posted results:
12/05/17 Prior Prices
Fund G Fund F Fund C Fund S Fund I Fund
Price 15.5144 18.0938 36.9482 47.5889 30.1634
$ Change 0.0010 0.0235 -0.1369 -0.3664 -0.0651
% Change day +0.01% +0.13% -0.37% -0.76% -0.22%
% Change week +0.03% +0.07% -0.47% -1.09% +0.14%
% Change month +0.03% +0.36% -0.67% -1.35% -0.68%
% Change year +2.16% +3.70% +19.68% +16.08% +22.61%
  L INC L 2020 L 2030 L 2040 L 2050
Price 19.4491 26.6726 30.3526 32.996 19.0832
$ Change -0.0123 -0.0339 -0.0688 -0.0900 -0.0605
% Change day -0.06% -0.13% -0.23% -0.27% -0.32%
% Change week -0.05% -0.12% -0.22% -0.28% -0.32%
% Change month -0.11% -0.24% -0.45% -0.54% -0.63%
% Change year +5.64% +8.97% +13.11% +15.08% +16.89%

 

 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:
S Fund:
I Fund: The I Fund generated an overall Neutral signal when the PMO joined the MACD in a negative configuration.
F Fund:
I sure didn’t like the days action much so we’ll have to keep a close eye on the charts and see if the market continues to move south. That’s all for tonight. Have a nice evening and may God continue to bless your trades!
God bless, Scott 8-)
 
 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.
 
 
I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 
 
If you would like to receive more information about this introduction, please feel free to contact me at  KyFan1@aol.com. 

 

 

 

 



Written By

Scott Grimes

  • 09/08/25

    Good Morning, The train left the station after Fridays jobs report. That may have well been the bottom of the current dip. It is now highly likely that the Fed will reduce rates on Sept 17th. More on that later. Right now lets focus on our trains next stop which will be Wednesdays Producer Price…

  • 09/01/25

    Good Afternoon, Happy Labor Day! I hope this note finds you enjoying some fine cuisine fresh off the grill! Well here we are starting a new month. The dreaded month of September. The weakest month for the stock market since the 20’s and here we are 100% invested in equities. What gives? First of all…

  • 08/24/2024

    Good Afternoon, We talked last week about Jerome Powell’s speech at Jackson Hole Wyoming being a possible inflection point for the market and that’s exactly what it ended up being. The Fed chairman gave a somewhat dovish address in which he noted that  “the baseline outlook and the shifting balance of risks may warrant adjusting…