Rules, in case you forgot. The last closing day of the Stock Market for any month, 12 times a year, if the closing price is above the 10 period moving average on any given index, we buy or hold if already in. If price is below the 10 period moving average for even given index, we sell or stay away from that index and put our money in the other indexes or just the G-fund.
C-fund is a buy or hold.
S-fund is a buy or hold.
Bonds are a buy or hold.
By the letter of the rules, the I-fund is a buy or hold. It looks pretty scary considering we are just .32 cents away from a sell. If you look at the entire movement bar for August, we spent 10 to 11 days below the 10 period moving average, which would have meant a sell. June bar ended up lower than the opening of June. July ended lower than the opening of July. August finally broke that trend by ending up higher than the opening of the August. I think September will either put the I-fund safely back into the buy category or put it into the sell category. Either way, the rule as of today still says buy or hold, so I will leave 25% of Grandma’s money in the I-fund.
For those that do not know, I have been running Grandma’s money using the monthly method in a TD Ameritrade account buying these ETF’s that represent our TSP funds exactly. AGG, IVV, VB, and VEU.
Grandma’s money is up – 4.9% since March 1st, 2014
Conclusion: All 4 indexes are a buy which would mean 25% in each C,S, I, and F. You could also safely but any one of the L-funds and be safe. 2050 the most risky and the L-income the safest. That’s it for the monthly monitoring peeps, see you at the end of the September. Now make your moves and forget it.
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