Well like I said in the post over the weekend, if we are moving sideways or up I might consider getting into the I-fund. Well the move over the weekend that happened in Cyprus brought that thought to a halt. But what about the C and S funds? Meh! I think we are ok for the moment and I will watch them closely as I always do, but for now I think we are ok. I was really expecting the markets here to pull back 3/4 to 1% today because of that news and right now we are in that range. But if you zoom in and look at the actually trading and what is happening behind the scene, it’s telling a little bit of a different story. Since the opening bell, prices have been retracing or marching back uphill against the news. All of my CBL’s are still safe on the S&P 500 and Small Cap and on top of that, price is still way above the 50 day moving average.
This will give you a little idea why this one day will not change anything for now. For me to bailout of the S&P500 / C-fund, price would have to fall through 1500 – 1505. For me to bailout of the Small Cap / S-fund, price would have to fall below 795 – 800. Right now today it is not even close. So there will be no moving today at least.
Be careful knee jerking your money based on the TV and word of mouth. This is a really good time to practice tuning the crap out and watch price movement and make a decision based on price. Below is current minute chart on the S&P 500 and Small Cap and what direction is price moving since 9:30 this morning? Up!
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