Sunday Update: 34% C Fund, 33% S Fund, 33% I Fund

The “Trump Rally” continues to to chug along with Thursday and Friday adding to the huge gains on Wednesday.  The market has been on a tear since the election and the long term trend is clearly up!  There are all kinds of things that could derail this rally but, until it happens, the trend is your friend.

All eyes are going to be on the Dow Jones Industrial Average (DOW) this week as the index approaches a major milestone at 20,000.  I expect we will get there by the end of the month.  After that we could see some profit taking in January.

Short Term

The C fund is pretty extended in the short term.  That being said, I think we still have some room to go higher before taking another pause.  Ideally I would like to see us hit around 2315 before taking a breather and getting ready for the push to 2500…

20161211cfund6monthdaily

 

Long Term

I put this chart up last month and I’m curious to see how close we actually get to these projections.  There are a series of indicators over different time horizons that point to 2500 as a likely top to this rally.  Assuming we get there within the next few months, I will be watching the market closely for signs to transition back to the G fund…

c-fund-2002-thru-2017

Please post questions to comments and have a great week!

Jerry