Alert: IFT Change 01 May 2016

Alert: New Allocation 50% C Fund, 50% G Fund

This is a tough call.  The market is in a precarious place.  Sentiment is very low, meaning professional money managers, newsletter writers, and the general public, are all mostly negative on the current market.  Most people think the market is going to roll over from here.  The thing is, when the majority agrees, the market almost always goes in the opposite direction.

We are definitely due for a correction.  The best case scenario is if the S&P500 (C Fund) drifts back down to the 200DMA at around 2015-2020 and then breaks out.  Worst case scenario, the S&P500 crashes thru support at the 50 and 200DMA and re-tests the lows from February.

I’m on the fence so, I’m moving to 50% C / 50% G until we see which scenario above is being played out.  The short term chart below looks much better than the long term charts below.  Things could get interesting this week so, please stay tuned.

Have a great week and please SHARE!

Jerry