Merry Christmas to all.

I hope all had a very Merry Christmas and didn’t over indulge to much in the eateries that can create a fair amount of bloating. Me? I did my best to over indulge and I did well.

Last week ended on a very negative note but how can you complain about 2.22% gain in the Small Cap and just over a 1% gain on the S&P? Well heck even the International threw in a .77% gain. So why complain? If your complaining, that is a sign of greed and you must be careful because this is when expensive mistake happens. So we need to watch our charts careful again on the short term because we have two things happening at once. First all 3 of our primary indexes are crossing over to the upside and price is above the 50 day moving average. At the same time the last two trading days price has been going down. This is a weird time of year because of the holidays and end of year selling for tax reasons, so it is going to be hard to read until the turn of the year.

Point blank the C, S, and I are saying to be invested. Your distribution is your call but I will be leaving mine as is. This also means that all L-funds are a go. The only thing that looks a little risky to me is that we are leaning toward the over bought territory. So there is a little short term risk of a pullback. All CBL lines are currently safe.

Long term charts are all a go and are not even hinting at any trouble, so stay invested. What about the Fiscal Cliff? Do you have a crystal ball? No one knows what going to happen either way and any bets you or I make, will be just that, a bet. In my mind, all of this news has been discounted by all the investors that feared any negative effects of tax law changes. Yes it could knee jerk this week, but which way is just a guess.

So for now, sit back, watch the show and wait to see how it plays out. It you’re afraid or have any doubts, bail.

TSP Distribution:  S-fund 40%, C-fund 40%, I-fund 20%