Since the L-funds are nothing but a combination of the primary funds, C,F, G, I and S, , I will not talk about those funds. But so you really understand the difference in the 2020 – 2030- 2040 – 2050, the further out the date of the fund the more risky the fund is. It is really just that simple.
First let’s look at the I-Fund which invest in nothing but International Stocks and the majority, from my understanding are in Europe. We all know what is going on in Europe so that is the first red flag. But with that information, we should be able to see that in the charts and so let’s take a look at the Weekly chart. This will smooth out all the noise and knee jerks of big one day swings and let you see the overall trend. The last signal that was generated on the chart was the week of June 20th, 2011 and that was a sell. The primary trend is Down and even though it appears to building toward a new higher pivot low, it failed to follow through this week. The only positive that you can find is the new chart is at the bottom of the chart, which is a momentum indicator that I’m currently studying, and that is nothing to bet on. I cannot see putting any money into the I-fund and if I had money there, I would be concerned. It is at least 3 to 4 weeks out before I could even consider looking at this fund again. I expect this to turn soon to the positive, but I will wait until I get something I can see before I look to invest here.
The next fund I want to look at is the F-Fund and it was last years winner by far. So far on the weekly it has not giving a sell signal to close out the current run uphill. But looking really closely at the chart from August 15th to present it has traded sideways bounce off $110.64. The Momentum chart at the bottom is showing signs or signals that things might turn down. Seeing that there has been no progress in price since August, I think I would stay in if I were in, but I would stay out if I was out. If price breaks above $110, then I would consider investing here again. Until then it just looks like a waste of time when the G-fund will at least pay you a steady income near 2%.
Next fund that I will cover is the Small Cap and it is identified as the S-Fund. On the Weekly chart we actually got an entry signal the week of December 5th. The current downtrend in Red is under attack and if we continue to move higher than $645 next week, I would have to delete that down trend and only show the new Green Uptrend line. The new uptrend is now support by 3 pivot lows and the last two are higher than the last. The momentum also appears to be in an up swing, so I think this is one fund that you need to invested in. What percent is totally based on your risk tolerance. Just know that the S, C, and I are the most volatile funds we have.
The last fund that I can show a chart on is the C-fund which is primarily invested in the S&P500. The last signal given on the weekly chart was the week of 11/21/11 and that was a buy. The down trend line has been busted and deleted and the momentum appears to climbing. So right now the only thing that I see happening here is the hitting of resistance right around the last green H, which is $1292. Anytime you approach these points, there is normally a pause for buyers and sellers to battle it out to see who is going to take charge of the markets. So if your in stay in and if your out, I would wait to see what happens at $1292. If we close above this, I would take it as a signal that the buyers are in charge and enter the C-fund.
I should not have to speak about the G-fund because this is the safety that pays 2.5% a year. If you have no tolerances for the stock market this is where you should be. My plan for this year is to stick to these weekly charts because after closely looking at last year, I may have only made 2 to 4 moves instead of 14. Next week the earning season starts on Wall Street and I expect that 70 to 80% of all companies will meet or exceed their expectations. But it is always a crap shoot so you just never know what is really going to happen. I will stay invested 100% in the market divided 50-50 between the C and S until I’m given a reason to change.
Let’s hope for a better year than last.
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