New Allocations: 50% C Fund, 50% G Fund

The market broke down today in a big way.  It was the first time the S&P500 (C Fund) had a 1% or greater daily decline in 109 days!  The last time the market went that long without a 1% decline was back in 1995!  Unfortunately, today’s decline took us below the current trend line, below the floor at 2350, and volume was pretty high.  With the MACD and Stochastic clearly on a negative run, there is nothing good about the chart below.

Having said that, I’m not giving up on this rally quite yet.  As I described in the Perspective blog post, I expect this decline to be relatively short lived.  We will get into more detail on the Sunday Update.  In the mean time, i’m moving to 50% C and 50% G.

More to follow this weekend.  Have a great rest of the week and please share.

Jerry

Here is the summary video: