* ALERT * : 13 June 2019
New Allocation: 75% C Fund, 25% G Fund
As I said in the last ALERT (read it here), I would consider increasing my position in the C fund with a strong close above the 50DMA. Prices have consolidated along this level for the past 4 days. I expect prices to go higher from here so the 50DMA should hold as support.
This is the second reallocation for the month of June but, even after 2 moves, you can always move to the G fund. This is one example of being on the right side of the 2 move per month rule.
I am looking for prices to make new all-time highs within the next 2-3 weeks. At that point, we will know which of the possibilities discussed in last weekend’s Sunday Update will unfold. IF prices do rise from here, I will be looking to lock in some of our recent gains at the 3000-3100 level.
The long term trend is still in question so, Stay Alert…
Insightful as always. Thanks.
If we see future tariffs on Mexican imports what do you expect the market to do at that point?
Janet, great question! I try not to have expectations for the market based on world events. My expectations are usually wrong… Tariff talks began on 30 May when the President declared a 5% tariff to begin on 10 June. I would have expected that announcement to drive the market lower. In fact, the opposite happened. 3 trading days after the announcement, the market rallied 2% and has continued higher through June. I pay attention to world events but they do not drive my trading decisions.