Earnings coming in weak

We saw more weakness in stocks Tuesday and things don't look to get too much better for Wednesday.  Big name techs Intel and Yahoo disappointed Wall Street after the close yesterday and after hours trading has them down 9% and 12% respectively.  Even with IBM's fair report, this should translate into a weak open today. 

While I have continued to say we need a pullback, from a technical standpoint the S&P 500 is still in fine shape.  That doesn't mean it will stay that way but buy and hold investors who look at longer term trends don't have any reason to be concerned.  We could get that pullback and it may be nasty, but we could actually see a drop of up to 10% from here and the long term trend would still remain bullish.


                                   Chart provided courtesy of www.decisionpoint.com

The fact that we didn't rally from the short term somewhat oversold condition could be one reason to be concerned for the intermediate term.  We have usually bounced from these levels.  If we don't get a bounce, it could be the start a longer term decline. 

The G fund did pay its penny gain Tuesday as expected and as of today I am 100% in the F fund, which remains bullish.  So I will remain in the F fund with an occasional move to the G fund until we see signs that stocks are ready to be bought.

The I fund is losing steam as Japan's market is down about 6% in two days.  This combined with the tech earnings trouble will likely mean an ugly day for stocks Wednesday.

An administrative note:  I had mentioned last month that RevShark and I were working on a project and we are very close to completion.  Those of you who know RevShark, or James De Porre (see bio) know he is a professional day trader / swing trader, turned money manager (SharkInvesting.com).  He is also the headline contributor to Jim Cramer's The Street.com - Real Money.  To have Rev agree to write for us daily is an honor for me.

This new service we will be offering here will basically be a weekly technical analysis breakdown of each of the TSP funds from RevShark, along with his recommended allocations.  Seeing my allocations is one thing, but managing our TSP accounts with RevShark over our shoulder is a major deal. 

We are still ironing some of the details but the cost will be $19.95 per month which will get you a weekly newsletter (4 or 5 issues per month).  We will offer a free trial so you can decide if it is for you before you commit to anything.  Stay tuned for more details.

That's all for today.  Currently 100% F fund.  Thanks for reading.