New Allocation: 100% G Fund
The C fund closed Monday just above its 10DMA, following a reversal on Friday off of the 3250 high. Ideally, the 5 wave pattern that began at the beginning of October will complete with 1 final push higher but it’s not necessary. The C fund is up approximately 13% since the early October low. Given the chart pattern and in an effort to lock in gains since October, I am reallocating to 100% G fund today.
We are due for a correction but it does not need to be significant. Ideally the C fund will find support at its 50DMA (about a 5% move down from 3250). Support at that level would set us up for a big move higher in the first quarter of 2020. More on that if it plays out. IF we do not get support at the 50DMA, a more significant decline is likely. Again, we need to let it play out…
We may see a few more days of upside but, give the totality of the circumstances, I’m comfortable reallocating to 100% G fund at this time. Please post question to comment or email.
Happy New Year!