TTT--9 Nov 05
Lack Of Conviction, Either Way. Today, C, I, and S Fund stock prices sagged moderately lower. The market ignored the good news of a decline in bond yields, which appeared to be only a counter-trend correction against a larger uptrend. Remember, when bond yield goes up, the F Fund goes down because of the negative correlation. In any event, minor counter-trend corrections typically don’t go far or last long. Breadth was mildly Bearish. The Cumulative Daily Advance-Decline Line has been lagging the price indexes in recent weeks. Lighter volume on the down move suggests lack of conviction. Positive price momentum has been slowing over the past four trading sessions. Nevertheless, short-term momentum is still hanging on to a positive reading with the exception of the EAFE Index. As a result, all shares of I Fund were sold today and put into G Fund.
Current Action Limits & Allocation Percentages:
F Fund (Long-term Treasury Bond Index) No buy possible on 9 Nov 05. Current portfolio allocation is nil.
C Fund (S&P 500 Index) Sell C Fund if SPY is < $121.77. Current portfolio allocation is 25%.
I Fund (EAFE Index) No buy possible on 9 Nov 05. Current portfolio allocation is nil.
S Fund (Wilshire 4500 Index) Sell S Fund if $EMW or DWCP is < $531.20. Current portfolio allocation is 50%.
G Fund (Money Market) Current portfolio allocation is 25%.
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and VXF (S)
