Sunday Update and Alert: 40% C Fund / 40% S Fund / 20% I Fund
The rally in the stock funds continued this week with the S and I funds doing very well, and the C fund forming a horizontal consolidation. The most significant technical change this week was in the I fund. It’s been over a year since the I fund was above it’s 50 Week Moving Average (WMA). This week it jumped above it and put the I fund back in the game. I will execute an Inter-Fund Transfer (IFT) on Monday swapping out the 20% G for 20% I. At that point I will be 100% in the stock funds.
The C and S funds are looking pretty over bought in the short run and the S fund is bumping up against some significant resistance. It wouldn’t surprise me to see a bit of a pull back over the next few weeks but, in my opinion, the opportunity potential outweighs the current downside risk.
Not a very exciting week for the C fund benchmark. The S&P500 stayed in a tight horizontal consolidation but the technical indicators are rolling over. This is a very good sign.
The S fund has continued its upward progress but is now bumping up against some significant resistance at the 90 level. We need to see the S fund break thru 90 and eventually make new heights above 95. This will likely not happen without an intervening consolidation of some sort.
The I fund broke up thru its 50WMA; a great sign. That breakout coming off of the long term double bottom pattern is a great sign for the I fund going forward.
Have a great week! Please post questions to comments and SHARE.