Good Evening, We finally got a few earnings reports that the market didn’t like and the pressure was on throughout the closing bell.You”d think that wouldn’t be an issue with close to 80% of corporations beating their marks. But as I mentioned in yesterdays blog, this market is not responding to good news the way it should and that remains a reason for concern. Today it was a battle between those negative earnings sentiments and some strong economic news. On the negative end it was reports by AIG and Cardinal Health that disappointed investors. On the positive side it was U.S. economic data that provided a more upbeat outlook. The number of Americans receiving unemployment aid fell to its lowest since 1973, and the U.S. trade deficit narrowed for the first time in seven months. Factory orders for March also rose. The bottom line is that this market has some major issues and today did nothing to resolve them.
The days trading left us with the following results: Our TSP allotment fell back -0.27%. For comparison, the Dow was flat at +0.02%, the Nasdaq slipped -0.18%, and the S&P 500 fell -0.23%.
The days action left us with the following signals: C-Neutral, S-Neutral, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now -0.45% on the year. Here are the latest posted results:
| 05/03/18 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.6815 | 17.704 | 37.2065 | 48.6542 | 30.8985 |
| $ Change | 0.0012 | 0.0148 | -0.0792 | -0.1500 | -0.0766 |
| % Change day | +0.01% | +0.08% | -0.21% | -0.31% | -0.25% |
| % Change week | +0.05% | +0.00% | -1.49% | -0.79% | -0.69% |
| % Change month | +0.02% | -0.10% | -0.68% | +0.00% | -0.76% |
| % Change year | +0.91% | -2.27% | -1.07% | +0.39% | +0.14% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.6505 | 26.9709 | 30.7244 | 33.4098 | 19.3325 |
| $ Change | -0.0071 | -0.0186 | -0.0419 | -0.0550 | -0.0369 |
| % Change day | -0.04% | -0.07% | -0.14% | -0.16% | -0.19% |
| % Change week | -0.20% | -0.36% | -0.68% | -0.81% | -0.92% |
| % Change month | -0.11% | -0.20% | -0.36% | -0.43% | -0.49% |
| % Change year | +0.51% | +0.30% | -0.04% | -0.21% | -0.33% |
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:
I Fund: The I Fund generated an overall buy signal when the Wm%R whipsawed back into a positive configuration. Frankly, I was surprised at this with a stronger dollar which makes me wonder how long it will hold up.
F Fund: Bonds are strengthening as money begins to flow out of stocks. Is this a warning sign? It is definitely something we should watch.
The stiff overhead resistance for this market continues. It will now become even more difficult to move higher as the slow season started with May. We’ll just have to read our charts and see what we can do with it….. That’s all for tonight. Have a nice evening and may God continue to bless your trades.
