Good Evening, The market ended slightly down to flat after lawmakers passed historic tax reform legislation today. While many talking heads are saying “that’s it” the tax reduction bill is priced in, I’m more inclined to think that the market is pausing while investors try to figure out which companies will benefit the most from corporate tax cuts. Some of that will come from diligent research and some will come from what the companies have to say regarding the new tax code. For instance company XYZ may announce that they are repatriating a billion dollars from off shore accounts and will use it to buy back shares and build a new factory or company ABC may upgrade their forecast for 2018. There will be a lot of that kind of stuff going on in the coming weeks. After that occurs I look for the improved business climate in the US to improve stock valuations which of course will give the current uptrend legs!
The days trading left us with the following results: Our TSP allotment came out on top with a modest gain of +0.17%. For comparison, the Dow fell back -0.11%, the Nasdaq -0.04% and the S&P 500 -0.08%. Praise God for the positive day!
The days action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Sell. We are currently invested at 100/S. Our allocation is now +18.99% on the year not including the days results. Here are the latest posted results:
| 12/19/17 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.5284 | 18.0384 | 37.7018 | 48.2994 | 30.5123 |
| $ Change | 0.0010 | -0.0642 | -0.1220 | -0.2790 | -0.1288 |
| % Change day | +0.01% | -0.35% | -0.32% | -0.57% | -0.42% |
| % Change week | +0.03% | -0.51% | +0.22% | +0.48% | +1.06% |
| % Change month | +0.12% | +0.05% | +1.36% | +0.12% | +0.47% |
| % Change year | +2.25% | +3.38% | +22.12% | +17.81% | +24.02% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.5246 | 26.8461 | 30.6713 | 33.3999 | 19.3472 |
| $ Change | -0.0185 | -0.0435 | -0.0808 | -0.1035 | -0.0674 |
| % Change day | -0.09% | -0.16% | -0.26% | -0.31% | -0.35% |
| % Change week | +0.09% | +0.17% | +0.29% | +0.34% | +0.40% |
| % Change month | +0.28% | +0.41% | +0.60% | +0.68% | +0.74% |
| % Change year | +6.05% | +9.68% | +14.29% | +16.49% | +18.51% |
Now the we survived the tax bill mode our job is to keep a close eye on the charts for any potential changes. I feel that we are in the right place, but I am a reactive trader and will always make my investment decisions on what I see before me on the charts and not from I how I feel. I have been surprised before and I’m sure I’ll get surprised again. That said, I see no reason on the charts to depart from our plan! That’s all for tonight. Have a nice evening and we’ll do it all again tomorrow.
