Sunday Update: 14 August 2016

Sunday Update: 40% C Fund / 40% S Fund / 20% I Fund

It was another pretty slow summer week for the markets.  The C fund moved up a bit on light volume, while the S fund lost a bit on heavier volume than last week.  The big story this week was the I fund.

I have been out of the I fund for months because its 50WMA has been acting as a ceiling since April 2015.  This week the I fund finally broke above its 50WMA (Week Moving Average).  This is a very big deal and hopefully the start of a significant bull market for the I fund.  We want to see the C, S, and I funds all moving in the same direction.  (See I fund chart below.)

Short Term

The short term C fund chart is pretty noncommittal.  It’s been consolidating around 2175 for about a month now.  The indicators are trending down although the price chart is staying flat to up.  This could be a very strong sign for the market going forward.  If the indicators get down to the over sold range with the price chart not falling too drastically, we could see a big rally in the price chart going into the fall.  We’ll see…

Long Term

The long term chart of both the C and S funds look a little toppy.  The price chart on each consolidated within a tight range this week.  The slow stochastic for each are maxed out, while MACD and Divergence are very high and look ready to roll over.  This is definitely something to monitor over the next few weeks but, for now, we’re in good shape.

Have a great rest of the summer and please share this blog post with friends and colleagues.  Thanks!

Jerry