Spot repot on C, S, and F funds

Good morning to all. This is a quick update to let you know the markets shrugged off the election of Trump and is moving forward at this moment. I still believe it is a wait and see thing and those overhead resistance levels will have to be watched. Currently at this point in time, the charts are telling us new information and here are 3 of them and what they are saying.

 

The S&P 500 fired a buy signal Tuesday and even though during election night the markets were down 5% and looked to be imploding, come the close on Wednesday the markets screamed higher. Thank goodness the monthly moves kept me from panicking and bailing out of the markets. This time I won.

 

After the close Wednesday the Small Cap also fired a daily buy signal. Today it will need to confirm that by staying above $1056.24. Looking at the pre-market this morning, that should be confirmed.

 

Bonds! Yuk! They collapsed even further and what you’re looking at above is the weekly chart. This was the last hold out on the buy side for bonds. The weekly charts seem to always be the last confirming signal that long term we are in either a up or down trend. If this structure holds through Friday, Bonds will be a sell on daily, weekly, and monthly charts and that would mean they are in a major downtrend. The index for Bonds is the F-fund and it would just be best to stay out of those for now. The only other affect it would have on your investment is if you’re invested in the L-funds or Income fund. I’m telling you now not to worry about that part. The most you could possibly be invested with bonds inside the L-funds is 6% total. This small investment in Bonds will not hurt you that bad, so don’t jump ship from the L-funds unless you are going more agressive.

 

Last note: I’ve said many times it is hard to invest and make smart decisions using daily charts. I use them to just give me a heads up that the markets might be changing. This past election cycle is a good example to the good side why following the long term monthly trends is so much less stressful. Nothing in the markets is a sure thing. Remember that.