Who would have thought after 2 week of 2014 that if you would selected 50% Small Cap and 50% Bonds, you would be leading the pack? But it’s true looking at the returns to date on the chart above. I’m still not touching bonds until they fire a buy signal on the monthly charts. Even then, I will tell you now, I will not like putting my money in a slow moving vehicle, but I will if warranted. I would rather make slow money than no money.
Below you will notice that all my charts look different and they are all marked different. Apparently the folks at TD Ameritrade in the ThinkorSwim division put out an update that ruined the software package on my MacBook. So until I talk to them Monday or Tuesday of next week, all my normal charts are down.
We have made no progress this year in the C-fund because the S&P 500 has made no progress in 2014. But looking at the chart above it appears that within the next few trading days that a break in one direction or the other is going to happen. Monday the markets are closed in the United States so we will have to wait a day. Based on that chart above, I would think that next week, something is going to happen. I just hope it is to the upside because there is no guarantees on direction. C-fund is currently safe and a watch.
Small Cap is just churning along but we have a pattern forming that I do not like. It is called a rising wedge and in most cases the tighter the lines get, the more likely we will have a pullback in price. There is no time or date that you can forecast the drop. This pattern does give me a little heartburn and it is something we will have to monitor very closely. S-fund is currently safe and a watch.
The International looks a little sloppy above but this particular pattern to me looks good. Like the S&p 500, I think that whatever is going to happen is going to happen very soon. I still think a breakout to the upside is likely going to happen here, but once again, there are no guarantees on breakouts in the direction you want. International is currently safe and a watch.
Bonds have been bouncing around erratically all last week. I still do not like bonds here and will not invest. If the Stock Markets do start to tank in the near future, then I will give more credence in movement of bonds.
Conclusion: All three funds are under a watch for breakouts on their daily charts. I believe that will happen next week once markets open Tuesday morning.
Hope you’re having a great weekend.
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