ALERT: New Allocation 33%C Fund, 33%S Fund, 33% I Fund
Something’s going on. I don’t know what it is but, something is going on. Everything in me is telling me that this market should be rolling over but the charts do not lie. It doesn’t matter what I think, believe, conjure up, pontificate… What matters is being on the right side of the market.
The S&p500 (C Fund) has been in a flat consolidation since late March. Today it jumped 1% and completely cleared the consolidation level. We saw a strong leg up from mid February thru the end of March followed by a tight, flat consolidation, and a strong breakout today. The market is going higher in the short term. How much higher is anyone’s guess. The 200DMA and 50DMA will move up as the price moves up. The key level to watch over the next several weeks is the 200DMA. The price MUST stay above the 200DMA!
Today was an important day for all 3 stock funds on both a short and long term basis. The S&P500 (C Fund) was up 1%, the S fund was up almost 1.9% and the I fund was up 1.6%. As you can see from the 2 year charts below, today marked the beginning of a change. It is NOT a confirmed trend change but, something is happening. All 3 stock funds have a similar down trend line and all were violated today on the upside.
Why am I back in the Stock Funds
I’m back in the stock funds today for 2 reasons. They are the same 2 reasons that I strive to achieve before every IFT.
- The price chart on all 3 stock funds broke up thru long term resistance (the down trend line in this case).
- MOST importantly, the downside is limited. I will be selling the stock funds (going back to G fund) if the S&P500 closes below the 200DMA. I am also closely watching the consolidation areas of each of the stock funds.
More to follow. It’s an election year so, stand bye for an exciting ride!