05/08/14

Good Evening,

I’ll start this message with a little known statistic that James DePorre pointed out yesterday. “Only twice in 35-years has the NYSE Index been at all-time highs, when the Russell 2000 broke below its 200 MA line. Those two times were in 1999 & 2007.” That’s a ridiculously ominous statistic, and it only reinforces the fact that we’ve been taking the less-is-more approach lately. Folks, I have been warning you all. The major indices are extremely misleading right now. Is anyone out there listening????? On to the day’s action. I could cut and paste from yesterday: Another day, another reversal and yes we’re still in the zone. Today’s close for the S&P 500 at 1875.90 keeps us well in the trading zone we have been in since February (1840 to 1890). We reverse, we rally, we dip, and yet when it’s all over we are still in the zone…

 

Stocks: Investors run to blue chips

 

 

The day’s action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Buy. We are currently invested at 08/G, 92/F. Our allocation is now -3.32% for the year. Here are latest posted results:
05/08/14
Fund G Fund F Fund C Fund S Fund I Fund
Price 14.4057 16.2844 24.4064 33.2431 26.3156
$ Change 0.0010 0.0111 -0.0273 -0.2725 0.1856
% Change day +0.01% +0.07% -0.11% -0.81% +0.71%
% Change week +0.04% +0.17% -0.21% -1.87% +0.35%
% Change month +0.05% +0.46% -0.36% -1.44% +0.65%
% Change year +0.83% +3.45% +2.22% -1.27% +2.94%
  L INC L 2020 L 2030 L 2040 L 2050
Price 17.0253 22.1459 23.8602 25.2654 14.3159
$ Change 0.0010 0.0034 0.0002 -0.0049 -0.0020
% Change day -0.01% +0.01% +0.02% +0.00% -0.02%
% Change week -0.34% -0.03% -0.14% -0.22% -0.30%
% Change month -0.23% +0.01% -0.08% -0.14% -0.20%
% Change year +1.80% +1.24% +1.61% +1.71% +1.74%
The S Fund (small caps) got trashed again today which does not bode well for the market as a whole. Small caps losing momentum is part of the topping process so it is not unexpected. Until we see the major indices correct we’re in for more of the same. Here’s what the SPY looked like today:
SPY is very close to making record highs, but below average volume persists.
0508
While the Nasdaq has suffered some as of late, the S&P 500 and Dow are both close to upper resistance. I still expect them to be repelled at that level and eventually turn down for a real correction. It may or may not come in the month of May as I predicted, but it’s on the way. Is anyone listening??? That’s all for tonight. Have a nice evening and may
God bless you and yours.
Scott8-)

 



Written By

Scott Grimes

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