New Allocation: 34%S Fund, 33%C Fund, 33% I Fund
We have been talking for some time about how the S fund has been the leading TSP stock fund. Leading, meaning that the S fund has been tending toward a direction first with the C and I following. The S fund had been leading us lower since early October but, that all changed when it hit its 50DMA (Daily Moving Average). Now the S fund is pulling all 3 TSP stock funds higher.
We are on the leading edge here. Only the S fund has all indicators positive and a clear breakout of the consolidation pattern. The C and I funds look to be following close behind. This means that we are getting back into the stock funds as close to the bottom as reasonably possible. In the long term, there is still significant risk. In the short term, there is a great opportunity here… As long as the S fund stays above its 50DMA we’re in good shape…
How high are we likely to go? I’m looking at AB=CD..
Hopefully we get a good holiday run up here… Please post questions to comments and have a great Thanksgiving!