Just a quick update on the markets because I know you are curious what I see and what I'm thinking. As bad as this week has felt, watching the news, and listening to how dusfunctional our Government has proven to be the this week, and watching your TSP account decrease in value, it really hasn't been that bad. Believe me, it doesn't make me happy either. But I do things different than most in that I watch price movement and tune out the noise of the news.
So what I see is stress holding price levels but those levels have held up pretty well. Stock prices of individual stocks are holding up well in a lot of cases. I'm still buying and selling a few stocks. Yes I took some profits because price told me to. Yes I had to sell a loser because price told me to. But overall, I still own the same amount of stocks today as I did before this market started getting messy. I'm currently 95% stocks and 5% cash.
Ok, the S&P 500 is sitting at $1678. Warning 1 was fired Monday and the second warning is just a $1 away. So another negative day tomorrow will fire warning two when the 50 day moving average fails. The third and final sell warning would be $1658 Friday. So I do not think we will get that sell signal Friday.
The Small Cap and International are holding much better and niether index has fired a warning yet. The International is even holding above the support point that I wanted it to hold, so all is good.
Here is my fear for tomorrow. Because our Elected Representatives, (All Sides), seem to be enjoying holding this country hostage for their own political gains, they may come to no resolution by the end of the day Friday and selling will take place. Why? The big money may not want to hold stocks over the weekend waiting to see what happens with the budget crap.
That is just a fear. What I will do is wait on price to once again guide me and I move based only on price.
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