* Alert * : 21 September 2020
The C fund has been consolidating for the past 2 weeks. After finding support at the 50DMA, prices could not get back above the 10DMA. On Friday, the C fund closed below its 50DMA for the first time since closing above it back in April. This does NOT mean that the market is getting ready to collapse necessarily (the S and I funds are still above their support levels). What it DOES mean is that the RISK has increased substantially. So how do we play this?
Part of the reason for posting the last Alert on 30 August was to retain 2 moves for this type of scenario in September. I will utilize my first move here. If the market continues down, great. If the market finds support and moves higher, I can use my second move and get back into the stock funds.
Please read the Weekly Update and watch the Weekly Update Show that will post tonight at 6:30EST. We go into a lot of detail about support and resistance levels of all 3 stock funds.
Bottom Line: The last time we saw a market correction similar to this was back in June. The C fund consolidated for the last 3 weeks of June, found support at the 50DMA and moved higher. We have a similar type of set-up now. We COULD see prices find support and move higher through the end of the year. IF that happens, we will see it clearly in the chart and get back into the stock funds. On the other hand, if the current decline picks up steam, things could get very ugly… Stay Alert.
* As always, this is NOT a recommendation. This is the allocation that works for my personal risk tolerance and observation of the market. Feel free to follow along, give it another day, or disregard completely… *
Jerry
Brand new member receiving my first alert today. Trying to understand exactly what your move will be tomorrow based on this alert. Are your plans to move everything into the G fund effective tomorrow and monitor the market to potentially make a second move back into equities later in the month if the C fund 50DMA moves higher?
Thanks in advance,
Rick
Hi Rick. Welcome aboard! The current allocation is always posted on the Member Dashboard along with the effective date and the current Alert.
The answer to your question is yes. If the market reversed and moved higher in the near term, I would likely move back to stock funds on a close above the 10DMA.
What is your recomation
Michael, please log-in to the Member Dashboard to see the current allocation and Alert. Thanks.
I am not so knowledgeable with this to understand the explanation. It would help if after the explanation you say it in layman’s terms. Like I am moving 100% to the C Fund.
David. I understand the frustration but, we need to keep the current allocation on the Member Dashboard. Thanks!
So with todays bust through the 50 day MA, do you see the next support being around the June 2020 lows around 3000?
Jeff, sorry for the delay on this. Yes, I expect the next major support around 3100, the 200DMA.
Hi I’m a brand new member. I wish I would have subscribed last week I wouldn’t have lost almost $2K this week. I’m very much looking forward to your future recommendations.
Welcome aboard LaTina!