Well, Barbara, the Storm has arrived.
Today was an uber bearish day. The market gapped down at the open. (Bearish Sign #1) The open was the high of the day. (Bearish Sign #2) The market fell throughout the day, down through 1190, 1180, and touching 1173 before closing @ 1178. (Bearish Sign #3) The market closed down more then 1%. (Bearish Sign #4) Gary Smith considers these days to be "true selling days." It is not a good time for stock holdings. Even the buying of U.S. treasuries by the Federal Reserve did not stir the market to rise. (Bearish Sign #5) Always remember that when a piece of good news comes out and the market continues to drop, then market conditions are poor for stock holdings.
Tonight, we are out of stocks. It is a good feeling. Smart investing requires good offense and good defense. The good offense comes when it is time to buy. Even though you might be fearful, you commit 100% to the C Fund and trust your observation and experience. The good defense comes when you reject greed and accept patience and discipline as true allies. When storm clouds are on the horizon, its time to step aside and wait.
There will be buying opportunities ahead of us. The opportunities oftentimes appear when no one wants to own stocks. We are now waiting for that moment. It will come. And when it comes, we will commit 100% into the C Fund. And we will beat the S&P 500 Index again this year.
As I type, the S&P 500 Index is up 5.65% for the year and dropping every day/smile.
Standard Disclaimers
1. This blog is for educational purposes only.
2. None of the individuals associated with the Las Vegas TSP Investment Club are registered financial advisors.
3. This blog is not an offer to the public to buy or sell any stocks, options, commodities or futures.
4. You are encouraged to do your own due diligence and to consult with a professional financial advisor before making any investment decision.
5. This blog cannot take responsibility for the results of your investment and trading decisions.
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