Sunday Update: 100% G Fund Until Further Notice.
It was a down week for the market after the strong gains of the previous week. The short term chart shows the market rolling over. The slow stochastic is in a down trend and the MACD has turned down. The big question in the short run is, does the 2,000 level hold? As you can see in the 6 month daily chart below, as the market continues to roll over we will likely see the price chart, 50DMA, and 200DMA all converge at around 2,000. There has been some pretty strong support at that level so, we’ll see if it holds.
The long term story is much the same as it has been for the past few weeks. All indicators are pointing to a top in the stock funds. You can see in the charts below that all 3 stock funds are in established down trends on a weekly basis. The weekly charts really help see the bigger picture that can get lost in the daily ups and downs.
The F fund is really the only fund that is showing some promise for possible gains over the next few months. I don’t usually track the F fund because the price does not usually fluctuate enough to generate significant gains. However, in this environment where the stock funds are out of play and the G fund return is so low, the F is my best bet. If the F fund pulls back a bit and tests the 109.50 – 110 level then moves up, it could be a buy up to resistance at 112.
Please post questions to comments and SHARE.. Have a great week!