Sunday Update: 22 October 2017

Current Allocation: 100% F Fund.

Friday was a very tough day for the F fund.  I’m hoping the bottom is in but, a close below 109.10 will trigger an alert so stay tuned this week…


The market continues to tick higher and, in the short term, it looks like there is no end in sight!  According to my count, the market is likely to move higher in the short run…  However, if we take a step back and get a wider perspective, the risk becomes pretty obvious.

In the Sunday Update from 17 July 2016 I put up the chart below.  It was the first look forward based on the Elliott Wave count from the last major low of 2009.

The next chart is another look at the S&P500 (C fund) since the 2009 low; this time back in November 2016.

Here’s the chart as it looks today!

We are definitely in the last remaining stages of the 5th leg in the rally that began in 2009.  In the big scheme of things, we are much closer to a major top than a bottom.  Having said that, I don’t think we’re there quite yet.  Let’s take a close look at the 5 leg that began at the low in early 2016 and the 2 most likely counts that may complete this rally.

The first calls for a short term move higher to complete step 3 and then a relatively short correction/consolidation before making a final run higher into 2018.  This possibility can best be seen in the C fund chart below.

The second possibility can best be seen on the S fund weekly chart.  This possibility also calls for a short term move higher but it would be the final move in the 5th leg.    

There are other possibilities but these are the top 2 right now.  Knowing that, how can we prepare?  The next correction will either be the beginning of a major, long term down trend or a last consolidation before pushing higher into 2018.  Either way, the very long term picture is bleak.  It will likely look something like this…

Enjoy the remainder of the rally but, don’t be caught holding the bag when the bottom falls out…

Have a great week!






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  1. Ah Jerry, It’s killing me i see the charts and i see what there telling me but over the last month and a half to see the market rise what i think 75 points or plus from where i jumped out, oh that hurts lol Bob

    1. Trust me Bob, I feel your pain… Along with a whole lot of other people watching this market inch up from the sidelines. The risk/reward is just too high for me.

  2. why be in the fund that has gone down? the market has been creeping up with no let up sight. but yet you say go to g then f and it falls. what gives

    1. Keith. The goal is to reallocate when you have a defined downside risk. I got into the F fund last week based on the chart that I put out. The risk was defined as 0.75% maximum. In terms of the stock funds, the risk in all 3 is very high right now. I will wait until the stock funds correct/consolidate and then breakout before getting back in. Rule #1 is don’t lose money. If I know my potential downside risk, the odds of losing money is low.
      That’s just how I play the game. If you want to play a more aggressive game, use the Sunday Updates and Alerts to support that. Lots of people use this info that way. There are lots of ways to play the game. Just have a plan and work the plan; otherwise you lose money going up and going down… Good luck!