Weekly Update May 28, 2010

With all the excitement at the beginning of the week you would think that we would have some clear direction in which to pick. Run and hide or stay to ride more of the up trend. We came into Monday with the S&P 500(SPY) at 109.115 and ended this week at 109.369, so we have nothing. We have no trend reversal confirmed, we appear to be entering a down trend but not confirmed, support at 104.20 was never crossed, so we stay in the C-Fund and we add no new stock positions and wait another week. The RSI is below 50 here, which is a concern, but without a 50 MA cross over it means nothing. If I do anything, I look to short some stocks or buy puts, but I will stand down for the moment.

The DWCPF, Small Cap, or my S-Fund actually made a move back toward the positive. It closed just 4 points from my resistance line and a good bit above the 50 week MA which makes the S-fund safe for now.

The EFA index, European, or I-Fund made another small click down and I’ve said it once but I’ll say it again, do not invest here unless you have some inside information or you just like to gamble. The index opened the week at 48.62 and closed at 48.32. Not much of a click down, but down it was. She is below resistance, 50 Week MA, below first major support of 49.94, and the RSI is below 40.19, which is far below 50. There is just nothing good to report here and unless you are shorting stocks or buying puts on stocks in this group, should run away for  this investment.

Click the charts to see a larger picture of the trends.