Good Evening, Janet Yellen and crew increased the Fed short term rate by .25% today as expected. In addition, Fed Chairwomen Yellen indicated that their would likely be three rate increases in 2017. There was also much speculation on how the election of Donald Trump might effect future rate of increases by the FOMC. The market reaction was a sell off. While I’m not in the business of speculation, I was somewhat surprised by the “Sell the News” reaction. The fact that it occurred on such high volume tells me that high volume computer algorithms are likely the culprit. At any rate it will be interesting to see what happens as we watch our charts closely over the coming weeks. At a minimum we should see a rebound in financial stocks as they clearly benefit from higher interest rates. I’m not going to speculate beyond that. I’ll just react to what I see on the charts.
Dow Snaps Seven-Day Win Streak After Fed Ups Expected 2017 Rate Hikes
The days trading left us with the following results: Our TSP allotment fell back -1.17%. For comparison, the Dow dropped -0.60%, the Nasdaq -0.50%, and the S&P 500 -0.81%
The days action left our charts with the following signals: C-Buy, S-Buy, I-Buy, F-Neutral. We are currently invested at 100/S. Our allotment is now +10.11% for the year not including the days results. Here are the latest posted results:
| 12/13/16 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.1691 | 17.3639 | 31.2993 | 41.5146 | 24.7923 |
| $ Change | 0.0010 | 0.0047 | 0.2092 | 0.0846 | 0.2444 |
| % Change day | +0.01% | +0.03% | +0.67% | +0.20% | +1.00% |
| % Change week | +0.03% | +0.04% | +0.56% | -0.63% | +1.23% |
| % Change month | +0.08% | -0.33% | +3.39% | +3.10% | +4.24% |
| % Change year | +1.70% | +2.41% | +13.56% | +17.82% | +2.89% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 18.4321 | 24.5778 | 27.0168 | 28.9042 | 16.4803 |
| $ Change | 0.0271 | 0.0742 | 0.1193 | 0.1478 | 0.0948 |
| % Change day | +0.15% | +0.30% | +0.44% | +0.51% | +0.58% |
| % Change week | +0.14% | +0.26% | +0.37% | +0.42% | +0.47% |
| % Change month | +0.76% | +1.55% | +2.27% | +2.65% | +3.00% |
| % Change year | +3.71% | +5.90% | +7.79% | +8.78% | +9.68% |
