Very close, so you got watch.

Ok, this is the part of the Stock Market I hate and still try to manage every time it raises it’s ugly head. Major pull backs taking some of my gains. You have to remember, you can never get out at the top and never get in at the bottom. Is this the top? I do not know, but if my indicators are hit, I have to listen and act on them.

Ok, let’s  look at what happened today. Small Cap took the brunt of the damage, so we will start here.

All that read here on a regular bases know that I have a 3 warning system and then require confirmation the following day. Today, the intermediate uptrend fell as well as my CBL. The green moving average line is the 50 day exponential and that is my last warning indicator. Price closed at $801.34 and the 50 day ma closed at $797.26. 4 little points is all that separates bailing and staying in the S-fund. Tomorrow is an important day because we need price to reverse. Ok, it’s simple, if price closes below $797 or $798, the final brick will have fallen. After that happens, then the next day would be bailout day as long as that trend continues lower. Right now, we just lick our wounds, hope for a reversal, watch and wait.

Damage was done to breakout, but no damage was done to indicate that we need to pull out of the C-fund. This is where the game gets hard. Price closed at $1553.69 and our bailout level is around $1527. So we have room here and there is nothing to add here but, watch and wait.

The international above is just a mess bouncing up and down with price. Price is also dancing on top the 50 day moving average making even more frustrating. Do I need to say it? Just watch it and stay out of the I-fund.

Bonds are still trying to get traction since the buy signal fired 4 trading days ago. It still looks a lot safer than the stocks at the moment and if this current market move scared me, I would likely run F before I would run to G.

I’m not making any prediction about tomorrow or what I will do until price gives me the answer. I will tell you, I will not be bailing out tomorrow no matter what.

Let’s look at the bright side and the part everyone forgets about. The G-fund has paid .38% year to date. The mixture that I have run was as high as 10.68% year to date and it is documented on my blog post. So if I give back 10% during this current pullback, I still have a gain of .68%. That is still better than the G. That is not going to happen. So, if I have to watch price to tell me get out and I end up with a 7% gain year to date, I’m happy.

Life cycles peeps. If the C, S, and I are all falling apart and if they do all fire sell signals, what do you think is going to happen to the L’s. All of them, including the L-income. Be careful.There is nothing wrong moving all G or F until prices return to an uptrend and then return to the L-fund of choice.

Want to see the current status of the funds? Click the little pic below.