Good Evening, The market is definitely in a short term downtrend, but there is nothing wrong with that. There is nothing wrong with a downtrend or a correction as long as the market is fundamentally sound and this one still is. That said, the excuse for today’s woes were reports from Macys and Kolhs that came in poorly. My question for the talking heads that proclaimed this as the reason for the selling is did anyone not think that brick and mortar retailers would have poor reports? Ok, maybe that’s the case or maybe it’s the Russians or whatever Trump did or….you get the picture. The market is down trending a little bit and given the recent lack of volatility a small correction wouldn’t hurt. It would create a little healthy movement in stocks. In the old days you could study the psychology of the herd and make trades accordingly. Now trading seems to be emotionless and computer driven. A lot of folks say that there will be a heavy price to pay when the machines finally do get caught off guard. I too wonder about that. Even though the current trading has put pressure on my portfolio, I welcome the movement in the hopes that it will finally shake this market loose.
The days trading left us with the following results: Our TSP allotment slipped back -0.25%. For comparison, the Dow dropped -0.11%, the Nasdaq -0.22% and the S&P 500 -0.22%.
Wall Street slides as investors fret about retail
The days action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Neutral. We are currently invested with 100% in the I Fund. Our allocation is now +7.18% on the year not including the days results. Here are the latest posted results.
| 05/10/17 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.3156 | 17.679 | 33.3243 | 43.3729 | 27.5881 |
| $ Change | 0.0010 | 0.0005 | 0.0502 | 0.2063 | 0.0365 |
| % Change day | +0.01% | +0.00% | +0.15% | +0.48% | +0.13% |
| % Change week | +0.03% | -0.21% | +0.07% | -0.02% | -0.76% |
| % Change month | +0.06% | -0.42% | +0.73% | +0.02% | +1.79% |
| % Change year | +0.85% | +1.32% | +7.94% | +5.80% | +12.14% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 18.8616 | 25.4778 | 28.4052 | 30.5947 | 17.5498 |
| $ Change | 0.0081 | 0.0203 | 0.0353 | 0.0450 | 0.0297 |
| % Change day | +0.04% | +0.08% | +0.12% | +0.15% | +0.17% |
| % Change week | -0.03% | -0.07% | -0.12% | -0.15% | -0.17% |
| % Change month | +0.21% | +0.38% | +0.58% | +0.67% | +0.76% |
| % Change year | +2.45% | +4.09% | +5.85% | +6.71% | +7.50% |
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: The S fund moved to an overall Neutral signal today when the PMO passed down though it’s signal line. That put two of our indicators (the PMO and the MACD) into negative configurations to generate the neutral signal. This reflected the overall market action in small caps.
I Fund:
F Fund:
Nothing to add here. We’ll just have to watch the charts to see if this market corrects or immediately whipsaws back up as it has done so money times over the past 7 years. Have a nice evening and may God continue to bless your trades!
