New Allocation: 33% C Fund, 33% S Fund, 34% I Fund.

On 11 October I reallocated from 100% G fund to 60% stock funds, 40% G fund.  This move reflected the change in market risk at the time.  On 11 October, as described in the ALERT, the C fund gapped up thru it’s 50DMA, on pretty big volume, as the indicators turned positive.  This was a quantifiable change in momentum of the C fund.  It didn’t confirm a change in the long term trend but, it did put the odds in our favor enough to get partially back into the stock funds.  (Chart below is from 11 October ALERT)

Since then, the C fund has continued to all-time highs, and broken out above its ascending triangle pattern.  This DOES NOT mean we are free and clear.  A daily close below 3000 would make me reconsider.  Ideally, we will not see a daily close below the upper support line at 3020.    

In the 11 October ALERT, I stated that I would move to 100% stock funds on a WEEKLY close above 3025.  Last week, the S&P500 (C fund) closed at 3022.  As of today, the C fund is sitting at 3046.  In anticipation of a solid remainder to the week, I am making this reallocation tomorrow since it will be my second reallocation of the month (October).  This gives us the maximum number of reallocations available in November.  

Make sure you complete your IFT no later than 1200EST on 31 October to get that day’s closing price!  If you miss it, the next trading day is in November…

Post questions to comments or email.

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As always, this is not a recommendation.  This is the allocation I am making in my personal TSP account.  Feel free to follow what I’m doing, be more conservative or aggressive.  It all depends on your individual risk tolerance.  

Jerry