Tonight we have a market that could move either way. I honestly can’t tell you which way it will go. We have a greater supply of  vaccine balanced by a greater number of Covid 19 cases. Not to mention a new mutated strain of corona virus. We have Senate runoff elections in the sate of Georgia that will determine the balance of power in the Untied States Government (More on that later)….and we have a potential powder keg with ongoing protests during the certification of the electoral college. Think this can’t detablize the market?? Think again!!!!! This is what I was talking about earlier this fall when I was told in several Emails that I was claiming that there was voter fraud. I even had people leave our group over this. However, that is not what I was talking about. I was talking about how the market hates uncertainty and how mail in ballets create uncertainty. At the time, I stated whichever side lost the election would not accept the results. Had the democrats lost the election they would be protesting the results as well. Why?? Because in the eyes of over 70 million Americans those mail in ballets are unverifiable. It doesn’t matter if there was voter fraud or not. It left the election results open to accusations from both sides and that is exactly what has happened. Demonstrations and counter demonstrations. Why? Because once again, these mail in ballets are unverifiable in the eyes of millions of Americans. I told you so then and I’m telling you so now! This has the potential to destabilize the market in a major way. I’m not saying it will but just that it has the potential to do so….While I’m at it let me talk about the Senate elections in Georgia again. I talked about them this fall and how they could effect the market and once again had a box full of less than desirable E-Mails. Wake up folks! If you want to make money you don’t want the market to go down!!!!!! It’s as simple as that. If you don’t like the truth then read a blog where they tell you whatever it is that you want to hear. I said back in (I think it was) September that if the two senate seats in Georgia went to the Democrats that the market would probably sell off. Why did I say this? Contrary to popular belief it is not because I hate democrats!! I have many friends in both parties. No!!! It is because the market favors a congress that is split.“Having a divided government is what generally investors want, whether you’re a Democrat or Republican. Investors prefer checks and balances,” said Jack Ablin, chief investment officer at Cresset Capital Management in Chicago. That is because investors believe that the democrats will increase corporate taxes and regulations. Both of which would result in reduced corporate profitability. Why do I say this and why do investors think this way??? Because stocks are valued based on what the companies listed on the NYSE are worth. Companies that make less money or lose money lose value. When stocks lose value the market moves lower and when the market moves lower equity based funds such as the C,S, and I Funds drop and when those funds drop you all lose money. That is the reason I talk about this stuff!!!! That is the only reason!!!! So let me make myself perfectly clear one more time. I care about the market, the constitution of the Untied Sates of America (as written) and the Lord Jesus Christ not necessarily in that order! I’m sorry if you don’t like that….I’ll love you anyway!!!!! I just want to see you prosper. I want to see your family free of financial bondage and sometimes that requires telling the truth even if it is unpopular. I have done my best to explain this. I can do no more. All that said my current indicators all point higher so I remain fully invested. Remember, we are reactive traders and while we try to anticipate what the market may do, we make our market decisions based on our charts.With that in mind remember this about our system. There must always be movement in the market before you can react. That will either mean you will lose some money you could have kept or you will miss making some money you could have made. Either way, that is the price of running a reactive system. The market must move before you can react and that may or may not be to your liking. So be patient and always remember that panic is not a strategy. Be disciplined, watch your charts and move your money when and only when they tell you to move it. Know always that the charts are based on mathematics and not opinion. Nevertheless, I would be amiss not to say that reading them is an art that is acquired as much through experience as it is through education. Charts can in fact be interpreted incorrectly. They are more like a wind vane than they are like a crystal ball. They tell you what direction the wind is blowing, but it is up to you to decided what your going to do about it. That noted, if read correctly your charts will give you the greatest probability of success as long as you don’t panic. One last thing on that subject. You will hear it from me again and again. Emotion and it’s resulting panic will get you absolutely killed in this business. If you act emotionally to existential circumstances with regard to your portfolio you are better off leaving it in the hands of a competent advisor.  You must think and act without emotion when making decisions about your portfolio. Exuberance or fear either one are your enemy…..

The days trading left us with the following results: Our TSP allotment added Posted a gain of +1.47%. For comparison, the Dow added +0.55%, the Nasdaq +0.95%, and the S&P 500 +0.71%. Praise God for such a good day!

The days action left us with the following signals: C-Neutral, S-Buy, I-Neutral, F-Neutral. We are currently invested at 100/S. Our allocation is now -1.41% on the year not including today’s gains. 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].