Sunday Update: 15 October 2017

The stock funds edged a bit higher this week but, it looks like they’re running out of steam.  The stock funds are overdue for a correction before heading higher into 2018.  The near term top may not be in just yet but, the risk/reward ratio is getting very high.  If you’re still in the stock funds, it would be wise to consider scaling back or paying very close attention for the next couple of weeks…

Short Term

We didn’t see much movement this week in the C fund. While it did drift a bit higher, there was very little volatility and the technical indicators are rolling over.  This rally appears to be running out of steam…

Long Term

Because we didn’t see much movement or volatility, the long term charts of the C and S funds didn’t change much this week.  They still look pretty strong with the MACD and Stochastic staying positive for the past 2 weeks and the RSI over bought on both charts.  There is room to run higher into 2018 but, in the short run, we should see a pull back before the run up.  

The I fund is a different story.  As we noted last week, we saw a nice 4 week tight consolidation and expected the next move to be up.  That’s exactly what we got this week.  As long as the I fund continues to stay above the trend line, you are good to go if invested in the I fund.

There is no crystal ball.  The market could go a little higher from here in the short term but its getting very risky…   Please post questions to comments and have a great week!

Jerry