Sunday Update: 22 January 2017

Current Allocations: 50% G Fund, 30% I Fund, 20% C Fund

Short Term

It was a very exciting week in the Nation’s Capital but a very dull week on Wall Street.  As DC managed the transition to a Trump administration, Wall Street was still in consolidation mode.  We’re a little more than a month into a flat consolidation but, we have seen this before!  Take a look at the yearly chart of the C fund below.  The pattern that we’ve seen since the November 2016 low is VERY similar to what we saw from the June 2016 low before the breakdown in September.

Lightning doesn’t always strike twice but stock patterns often do.  As the 50DMA gets closer to intersecting with the price chart, something is going to have to give.  This flat consolidation is going to have to break, one way or the other, within the next few weeks or sooner…

Long Term

On a weekly basis, all three TSP stock funds were down marginally for the week but finished at the top of the weekly trading range.  The S and C funds are now in a clearly identified weekly flat consolidation.  The I fund is still the best chart of the group.

Have a great week and please post questions to comments!

Jerry