New Allocation: 100% G Fund.
The market has made 3 attempts to get above (and stay above) its 50 Day Moving Average (DMA) since the decline began in late January 2018. We now have a great set up for prices to move lower from here. The picture below represents the “ideal” time to sell a stock short, meaning bet that it’s going down in price. As you can see, it looks an awful lot like real life right now…
The chart below is 1 year of the C fund. While there are no guarantees, it looks like we’re going lower from here. The ElliottWave patterns and technicals point to lower prices going forward as well. (See this weekend’s Sunday Update). I am very comfortable sitting in the safety of the G fund and seeing how this plays out.
How far down can this market go in the short term? If we get a close below the 200DMA then we COULD see short term lows in the mid 2400s. See last week’s Sunday Update for more on this.
Please post questions to comments and have a great week!