The S&P 500 didn’t do a lot this week but it still hung onto the current trend. I think a little sideways churn is likely due here, but not required. Some of the major companies Thursday and Friday missed some critical earning reports and I think this was the real drag on the market. Next week, that news will be forgotten. Chart wise? We are forming another Bull flag and if things continue as they have, we will shortly be returning to higher prices. The Dark blue uptrend line that I drew on the chart just shows that the current rise in prices is still on trend.
The Small Cap had a very nice week with a 1.18% rise in prices. Unless something bad happens between Monday – Friday next week, the Small Cap will be a long term buy. Price is currently above the monthly moving average. Everything here looks promising.
The International had the best week in a long time and the best of all indexes at 2.13% gain for the week. I wish these moves were easier to grab, but they are not. Making it even more difficult is the limited moves you can make with our TSP. Just like the Small Cap, if the curent price level holds through Friday, the I-fund will be a monthly buy.
Bonds have been grinding sideways for the 7-21 days that is normal for a grind. It is time to make a move up or down. Odds are, since it is technically a Bull Flag, prices should go up. I will be watching closely next week to see if we get that breakout.
Conclusion: It looks like by Friday all 4 indexes will be a long term buy because of their monthly moving averages and price. If that is the case, then all L-funds would be a buy. That doesn’t mean you invest in all of them. It means you find the one that fits your risk tolerances and put 100% of your money in it. If you want to do the individual investing like I do, then it would mean by the rules that each fund gets 20% each if you use the G-fund and 25% if you do not. I will post again Thursday night if I get a chance to give you an update on the monthy moves.
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