Well after 4 or 5 weeks waiting for something to happen in either direction, we finally got a signal this week. We actually got a buy signal on the S&P 500 because the entire weekly trading bar cleared the 50 week MA and the RSI closed above 50. So just like in January, I will be looking to go long in my stocks list. I will also be leaving my retirement funds invested in the C-fund. There is a lot of reason news wise not to invest, but if I believe in the system that I’m following, then I have to go with what I see.
The small cap or $DWCPF has always been the strongest index that I follow and this week it
moved even further up and out. This index has an RSI that never dipped below 50, it only just touched the 50 week ma and now is clear of the 50 ma. The 1st major support point was never threatened and it almost appears by next week that it may cross back above the support line that was previously drawn. So I will also stay invested in my small cap index.
The European index or EFA made a nice recovery this week but it is still to early to re-invest in the index. The weekly trading bar is still split on the 1st major support point. The entire bar is also still below 50 week ma and the RSI is below 50. So even though things look as though they are improving, it is still way to early to jump back into the index. I will sit on the sidelines with the I-fund.
TSP 40% – C, 40% – S, 20% - G
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