Good Evening,
The FED announcement came at 2:00 PM ET today followed by FED Chairman, Janet Yellen’s news conference shortly thereafter. The FOMC left the phrase “considerable time” in their statement in reference to when they will raise interest rates. In the news conference that followed, Janet Yellen stated that there is “no mechanical formula” to determine when interest rates will increase and elaborated by saying that an interest rate increase would be tied to unemployment and inflation. She further said the a rate increase could come either sooner or later, depending on these conditions. It was mentioned that the FED’s target for inflation was 2%t and in the neighborhood of 5.9% for unemployment. Of course, you can expect more speculation and market fluctuation until it actually occurs and then you can expect additional volatility each time the FED meets until the rates are close to what the FED considers normal which I think is around 4%, but don’t hold me to it. As a result the market rose and then sold off into the close to settle with small gains across the board. Our TSP allotment managed a small gain, as did AMP. However, the AMP fund closed out the day with a slight loss due to fluctuation in investments made during the day due to the selling that occurred late in the day. Once again, all our AMP investments did close the day in the green. Most of us think the afternoon selling was some healthy profit taking, but no one knows for sure until tomorrow.
Dow closes at record after Fed keeps rates intact
Thank Janet Yellen: stocks hit new record
| 09/16/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.5247 | 16.4182 | 26.2161 | 35.3727 | 26.0089 |
| $ Change | 0.0009 | 0.0023 | 0.1953 | 0.1887 | 0.0645 |
| % Change day | +0.01% | +0.01% | +0.75% | +0.54% | +0.25% |
| % Change week | +0.02% | +0.11% | +0.68% | -0.41% | +0.08% |
| % Change month | +0.10% | -0.99% | -0.13% | -1.47% | -1.09% |
| % Change year | +1.66% | +4.30% | +9.80% | +5.06% | +1.74% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.3109 | 22.7689 | 24.6693 | 26.2294 | 14.9033 |
| $ Change | 0.0213 | 0.0668 | 0.0921 | 0.1123 | 0.0712 |
| % Change day | +0.12% | +0.29% | +0.37% | +0.43% | +0.48% |
| % Change week | +0.10% | +0.18% | +0.21% | +0.22% | +0.24% |
| % Change month | -0.10% | -0.33% | -0.46% | -0.55% | -0.62% |
| % Change year | +2.94% | +4.47% | +5.16% | +5.62% | +5.97% |
“Price hit resistance at the top of the ascending wedge before falling back down. The PMO is flat and very close to its EMA. If it continues to move sideways, it will inevitably cross its EMA. If price moves lower, the PMO will likely avoid a whipsaw BUY signal. “
“Conclusion: After hitting resistance, price fell quickly so I wonder if the euphoria over the Fed not raising interest rates for a “considerable” amount of time is over. Indicators are neutral to bearish leading us to believe that when price failed to break through resistance it could be signaling the possibility of a pullback. I am not ready to bet against this rally, but I don’t think this is a good entry point.”
