Sunday Update: 25% C Fund, 25% S Fund, 50% G Fund.
We finally got a breather this week, our first since the post election “Trump Rally”. While all the stock funds were down, none of the moves were significant enough to cause a change in my allocation. The C fund didn’t get high enough to push me into 100% G fund and it didn’t get low enough to push me to 100% stock funds. I’ll stay at the current allocation and see if the market sorts itself out next week… This week was a much needed, low volume, cool off after three big up weeks. Nothing to worry about (yet…).
I was looking for the C fund to get into the 2215-2225 range before hitting serious resistance. It did get to a high of 2214.10 on Wednesday, which was a new all time high, before continuing the rollover. We’ll see what happens next week. If the market continues to ease down, I will be looking to increase the stock fund allocation at the 2165 level (assuming we get some kind of bottoming pattern there).
On a 2 year weekly perspective, the C fund just took a much needed breather. The price swing stayed within last week’s range so the trend is still up on a weekly basis.
The S fund is interesting in that it had some resistance at the level of the prior high. This is what happens at a double top. We’ll have to see if the S fund can push to new highs next week. If not, I might be looking to reallocate out of the S fund.
The I fund is in the same trading range and headed lower. No changes to the trend since September… Looking for support at the lower channel line.
Have a great week! Please post questions to comments and SHARE… Thanks.