Good Evening,
The market moved up just a little more today with the S&P closing in record territory again just above the 2000 mark. It was on typical low summer volume and only amounted to a gain of +0.11%. The real story today was small caps that out performed. The S Fund which is a midcap blend that includes a lot of small caps closed out with a nice gain of +0.45. Of course that represents 60% of our allocation. God just keeps blessing our group! Most defensive sectors were flat to off on the day.
Wall Street Continues Its Ascent
The day’s action left us with the following signals: C-Buy, S-Buy, I-Neutral, F-Buy. We are currently invested at 40/C, 60/S. Our allocation is now -3.61% on the year not including today’s gains. Here are the latest posted results:
| 08/25/14 | |||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 14.5053 | 16.5307 | 26.166 | 35.6464 | 26.3035 |
| $ Change | 0.0029 | 0.0113 | 0.1249 | 0.1448 | 0.1703 |
| % Change day | +0.02% | +0.07% | +0.48% | +0.41% | +0.65% |
| % Change week | +0.02% | +0.07% | +0.48% | +0.41% | +0.65% |
| % Change month | +0.16% | +0.81% | +3.68% | +4.25% | -0.12% |
| % Change year | +1.53% | +5.01% | +9.59% | +5.87% | +2.89% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 17.3103 | 22.8048 | 24.7286 | 26.3077 | 14.9556 |
| $ Change | 0.0209 | 0.0635 | 0.0862 | 0.1039 | 0.0666 |
| % Change day | +0.12% | +0.28% | +0.35% | +0.40% | +0.45% |
| % Change week | +0.12% | +0.28% | +0.35% | +0.40% | +0.45% |
| % Change month | +0.73% | +1.46% | +1.85% | +2.14% | +2.34% |
| % Change year | +2.94% | +4.63% | +5.41% | +5.93% | +6.34% |
Let’s take a look at the SPY. Chart courtesy of stockcharts.com. The analysis is by a gentleman at Stockcharts.com by the name of Author Hill. He is another heavy weight in the field of technical analysis so I thought you all might enjoy his analysis. He looks at a few different things than we do so it will give you an opportunity to put some new tools in your chest. Of course the SPY is the ETF version of the S&P 500 that our C Fund tracks.
“No change. SPY is around 5% from its early August low to last week’s high. Even though this advance is steep and the ETF seems short-term overbought, the move reflects strong buying pressure and the bulls still have the edge. The flag breakout near 194 is the last signal and the ETF tested this breakout with a small pullback in mid August. I will leave key support at 194 for now. “
The bull flag pattern he identified early in the month is very interesting. it is a good pattern to watch for. Just as I did, he set his upper resistance in the 190 area which would correspond to around 1990 on the $SPX index.
Our strategy has not changed. We will stay in the equity market until we get a sell signal at which time we will look to the G and F Funds for safety. That’s all for tonight. Have a nice evening.
God bless,
Scott
