* ALERT *: 08 July 2019

New Allocation: 40% S Fund, 40% I Fund

As we discussed in this weekend’s Sunday Update, there is a SHORT TERM opportunity to see some gains in the S and I funds.  I don’t expect to be in the stock funds for too long but, the charts will ultimately be the guide…

The C fund is too close to resistance for the risk/reward ratio to be favorable.  The S and I funds provide a much better set up, both in terms of the chart and the risk/reward ratio.  

The S fund can move about 5% higher from here before hitting its last All Time High at 1500.  That’s my target upside.  If/when we hit 1500 over then next couple of months, I’m likely to move back to the G fund at that point.  * A weekly close below 1400 is my line in the sand *

The I fund can move about 9% higher from here before hitting its last All Time High at 72.  That’s my target upside.  If/when we hit 72 over the next couple of months, I’m likely to move back to the G fund at that point.  * A weekly close below 64 is my line in the sand *

This ALERT is based on WEEKLY charts so, we need to allow for some volatility.  That’s why having a Line in the Sand is important.  If the S and I funds hit my upside targets, I’ll take the gains off the table by moving to the G fund.  If the market rolls over, I’ll cut my losses by having a firm Line in the Sand.  

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As always, this is not a recommendation.  This is the allocation I am making in my personal TSP account.  Feel free to follow what I’m doing, be more conservative or aggressive.  It all depends on your individual risk tolerance.  

Please post questions to comments or email.

Jerry

Responses

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  1. Hey Jerry! Thanks for the update. However, is the remaining 20% remaining in G Fund? Just want to clarify.

    Thanks!

  2. Jerry …. What about the other 20% ? Are you keeping it in the G Fund or are you allocating 50/50 in the S and I funds?