Sunday Update: 25 December 2016

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

I’m really on the fence this week.  We’ve had some serious gains since the election but, we’re butting up against some significant resistance and the short term chart is potentially rolling over.  On the other hand, the weekly charts still look good.  I’m going to stay fully invested in the stock funds but will be watching very closely this week.

IF there is a significant spike down on the S&P500 intra-day OR a close below 2250, then I’m going to 50% C fund and 50% G fund.   

Short Term

The short term chart of the C fund has been consolidating for the past 2 weeks.  Right now, the short term up trend is still in place but, the MACD has just crossed and the Divergence has just turned negative.  A close below 2250 or an intra-day spike down (to 2240) would be enough to change the short term trend and push me to take some money off the table…  Stay tuned for a potential ALERT next week.

Long Term

The long term (weekly) charts of the C and S funds funds are butting against the upper channel line BUT, the MACD and Divergence are positive and still moving higher.  The I fund is in the middle of the trading range with the MACD and Divergence crossing to the upside, very positive.  Taken together, I’m going to let this play out a bit longer.  We have 4 trading days remaining in December so 1 more potential reallocation.

Again, a close on the C fund below 2250 and I’m taking 50% of my investment off the table (i.e. moving 50% to G fund).  Please stay tuned.  It might be an interesting week.

Its going to be a very light volume holiday week.  The market is closed tomorrow in observance of Christmas and 2 January 2017 in observance of New Years.  People will not be focused on the market and volume will be light, which makes for potential chaos.  An ALERT is very possible so please be on the look out….

Post any questions to comments and have a great week.  Let’s make some money in 2017!

–  Jerry