Another Critical update for the Small Cap (S-fund)

Monday sell, Tuesday safe, and here we are Wednesday and we have another sell signal on the Small Cap. I have not been listening or reading any news to keep my mind clear so I do what I’m suppose to do when price talks. The Small Cap has again fired a sell signal and if we do not recapture $801 tomorrow by 11:30am, I will exit and deposit into the F-fund, bonds. CBL, Uptrend, and 50 day moving average all failed again today.

The International Index closed right on the 50 day moving average, which is not a sell, but it is a watch. Price is still above the uptrend line and above the CBL. We just got a buy signal 5 days ago, and in the stock market world, we call this a head fake. You can hold here tomorrow, but it is a watch.

The S&P 500 fell back into the Bull Flag for the second time in two days. Everything here is safe but also by the slimiest of margins. Another break down tomorrow and I fear a sell signal will fire here and then Friday would be the bailout day. We are much better off here than with the Small Cap, but not getting a real good feeling about that little nugget.

The Bonds above have had a good amount of price movement up and down, but at the end of the day, we are closing within pennies of the day prior. So basically treading water, but if stock do break down like they seem to be, I would expect bonds will run a little bit. Remember, bonds never move up and down as much as stocks, but it moves more the G-fund. The disadvantage, is that the F-fund can lose money, the G-fund never goes down. This will be my first place to run to if I bail out of stocks.

Conclusion: It’s that time of year again where price just starts moving dramatically starts swing back and forth and drives traders crazy. The last 3 May’s, we have had some big price swings. Tomorrow, I’m bailing out of the Small Cap if price doesn’t recapture the $801 level. S&P and International are safe for now, but under watches. Bonds are still a go.

One last little tid bit, if you are using the weekly chart method to make your decisions with the 10 and 30 week crossover signal, we are not even close to sell on any of the indexes.