Good Evening, Forget the Dow! All the talking heads are lauding how the Dow hit 22,000. Folks, that is not the real story with this market. It has been wanting to correct and as a result has come under pressure. If you want to know the true nature of the market take a look at the Russell 2000. For those of you that a new to this game the Russell 2000 is an index made up of small caps. The ETF that corresponds most closely with it is the IWM. As the name implies it is made up of 2000 small cap stocks. It was down -1.09% today. The Dow which is made up of 30 large cap stocks was up +0.24%. The average stock out there is under pressure. Rather than buying the dips traders are selling the news. Apple reported last night and blew earning estimates away. That”s a healthy company with a more than healthy balance sheet that is making a bunch of money. Earnings over all are very good across the board but traders are selling the news. If you need another example of why this market is not what the Dow says it is then look no further than everybody’s favorite TSP Fund the S Fund which is a small and mid cap blend. What did it do today?? It was off -0.76%. So what does this mean? It means that the market could be correcting. We don’t know that for a fact but we should be ready because selling Apple on a report like they had last night is not necessarily the sign of a healthy market.

The days trading left us with the following results: Praise God our TSP allotment held up well with a small gain of +0.04%. For comparison, the Dow as we mentioned gained +0.24%, the Nasdaq was -0.00% and the S&P 500 inched up +0.05%. The end results don’t tell the story for the day. All the major indices were down until the dip buyers showed up to drive them back up in the afternoon. It was basically a repeat of last Thursday’s action.

The days action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Buy. We are currently invested at 100/I. Our allocation is now +13.14% for the year not including the days results. Here are the latest posted results:

God bless, Scott 

 

 ***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  [email protected].