Good Evening, Thank you Amazon or I guess I should say thank you Amazon, Google, and Microsoft! Although Amazon got it started with the first report after the bell last night. I mentioned in last nights blog that Amazons earnings would spur the market and they did just that with the Nasdaq gaining a whopping 2.2%. The Dow which has been out performing as of late was the laggard today. You know they say this market is extended that it is going to flame out and burn, that stock valuations are too high. That’s right assuming the earnings don’t increase, but not so when companies increase their earnings. Higher earnings justify higher valuations. The market trades (or at least it should) off of earnings and right now those earnings are mostly good. And one more thing while I’m at it. Things change everyday that we get up and the days when the United States was an island oblivious to the world are over. No sir, you can say that stocks have gone as far as they can go, but if you do so your failing to consider that many companies do business internationally. The world economy is currently expanding. You’ve heard the term emerging markets? They create opportunities for companies liker Caterpillar and GM or FMC. You think emerging markets don’t need bulldozers, pickup trucks, and specialty chemicals? That’s right you get the picture. Increased earnings mean lower stock valuations. For those of you that do math it’s price divided by earnings commonly referred to as P/E. OK Mr. Bear. That’s not enough for you? Then consider price to earnings to growth commonly referred to as PEG. When you divide the P/E by growth that you get from these emerging markets then you really have a strong case for the bull market moving forward. OK before you get to carried away let me say this. I am not guaranteeing that the market will keep going up. I am just laying out a case of how it can based on the fundamentals by which virtually the whole investing world bases it’s decisions. I’ll make you a deal Mr. Bear. If you don’t keep telling me how the market is going to go down then I won’t tell you how it can go up. Meanwhile, I’ll continue to watch my charts and react to the price action. While my timing may not be perfect my investment decisions will be good enough to make me some money and protect my precious capital. One more thing Mr.Bear. Right now the trend is up and the trend is my friend!
Today’s rally let us with the following results: Our TSP allotment gained +0.62%. For comparison, the Dow added +0.14%, the Nasdaq an unbeatable +2.20%, and the S&P 500 +0.81%. Its early in the season, but I’m sitting here thinking that it’s time for small caps to get revved up. Praise God for another good day!
The weeks action left us with the following signals: C-Neutral, S-Neutral, I-Neutral, F-Sell. We are currently invested at 100/S Our allocation is now +14.90% on the year not including the days results. Here are the latest posted results:
| 10/26/17 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.4744 | 17.9686 | 35.8795 | 46.6428 | 29.8892 |
| $ Change | 0.0010 | -0.0078 | 0.0455 | 0.1642 | 0.0160 |
| % Change day | +0.01% | -0.04% | +0.13% | +0.35% | +0.05% |
| % Change week | +0.04% | -0.26% | -0.57% | -0.70% | -0.27% |
| % Change month | +0.16% | -0.37% | +1.73% | +0.90% | +0.99% |
| % Change year | +1.89% | +2.98% | +16.22% | +13.77% | +21.49% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.3182 | 26.408 | 29.9067 | 32.4433 | 18.7297 |
| $ Change | 0.0057 | 0.0135 | 0.0255 | 0.0329 | 0.0220 |
| % Change day | +0.03% | +0.05% | +0.09% | +0.10% | +0.12% |
| % Change week | -0.09% | -0.18% | -0.31% | -0.37% | -0.43% |
| % Change month | +0.37% | +0.58% | +0.88% | +1.01% | +1.13% |
| % Change year | +4.93% | +7.89% | +11.44% | +13.16% | +14.73% |
