Good Morning;
I have an appointment this morning, so can only give you the reads from yesterday’s closes of the 4 funds. This morning the futures are up modestly, we may have a sell off this afternoon IMO.
The C-fund was up yesterday. It’s reading is +.16 and is a Wait for lower prices. In my opinion the zone between 1380-1410 for the S&P 500 is the maximum overall upside potential of this rally so be careful here. The S&P is also forming a bearish rising wedge pattern.
The S fund was also up yesterday. It’s reading is +.26 and is in Wait mode for lower prices.
The I-fund was up yesterday. It’s current reading is +.03 and is in Wait mode for lower prices. It has been the strongest of the 3 stock funds. I would like to see it come down before buying it.
The F-fund (AGG) was down yesterday but the TSP share price was up one cent probably because of the monthly dividend declared and credited to the share price. It is at +.09 and is in Hold mode for higher prices. The F-fund was a Buy on 4/17/08 and 4/18/08 at $12.11. It managed to get above its 20 day moving average and may get up to 103.
I managed to make a 3% return for the month of April on 2 IFT’s. Staying 100% F-fund at this time.
There are no guarantees that the funds will hit their respective Buy Below or Sell Above parameters but the whole idea is to try to sell before everyone else does, preserve your funds, and be patient enough to wait for a truly good negative reading before buying a fund. Quick selling and patience are the keys to be being successful in this bear market. Any comments or suggestions are most welcome.
Good Luck!
------------------ Share 11am Buy Sell Today’s
Date Fund Price Read Below Above Recommendation
4/28/08 C 15.85 +.13 -.25 +.25 WAIT
4/29/08 C 15.79 +.01 -.25 +.25 WAIT
4/30/08 C 15.73 +.03 -.25 +.25 WAIT
5/01/08 C 16.00 -.02 -.25 +.25 WAIT
5/02/08 C ------- +.16 -.25 +.25 WAIT
4/28/08 S 18.99 +.18 -.45 +.40 WAIT
4/29/08 S 18.88 +.06 -.45 +.40 WAIT
4/30/08 S 18.86 +.10 -.45 +.40 WAIT
5/01/08 S 19.13 +.03 -.45 +.40 WAIT
5/02/08 S ------- +.26 -.45 +.40 WAIT
4/30/08 I 23.89 +.15 -.45 +.45 WAIT
4/29/08 I 23.77 -.08 -.45 +.45 WAIT
4/23/08 I 23.79 +.01 -.45 +.45 WAIT
5/01/08 I 23.89 -.26 -.45 +.45 WAIT
5/02/08 I ------- +.03 -.45 +.45 WAIT
4/28/08 F 12.12 -.26 -.50 +.50 HOLD
4/29/08 F 12.13 +.21 -.50 +.50 HOLD
4/30/08 F 12.18 +.13 -.50 +.50 HOLD
5/01/08 F 12.19 +.26 -.50 +.50 HOLD
5/02/08 F ------- +.09 -.50 +.50 HOLD
How to use the above chart & Recommendation Explanations;
BUY - Once the READ number goes below the BUY Below number start your buy program as you are entering the buy zone and the fund is oversold. Either buy in completely, realizing there may be a couple more down days to go, or start dollar cost averaging into the fund.
SELL - Once the READ number goes above the SELL number start your sell program as you are entering an overbought situation which can last one to three days.
Because we are currently in a bear market in the C, S, and I funds, I would recommend selling your complete position. Bear market rallies can turn on a dime and you will not have much of a topping process. If you are serious about following this system you should set up an Excel spreadsheet to plot these numbers and chart them. It would make the system come to life for you. You will then see where we have been, where we are going, and at what point the market is likely to top out, much more clearly.
WAIT - Do not do any buying yet, expecting lower share prices in the days ahead. Trending down.
HOLD - Continue holding your current position in the fund. It’s okay to add to your position providing the current 11am READING number is a negative number.
Notes:
Selling during a bear market must be quick and decisive with the C, S, and I funds. Let the other investors fight for that last.half percent. By getting out early, preserving your capital, and being patient for the next buying opportunity you will be successful. This is of the utmost importance. Unlike Bull markets, bear markets are unforgiving and don’t bail you out if you should make a mistake or stay in too long. If you start following this program you must try to monitor it every day to get a feel for it Please remember this system is just another tool to use to help you decide your investment decision. These are just my thoughts and there is no guarantee of profit, just educated guesses as to where I think the funds are headed. Please also remember your final investment decision is your choice and responsibility. Hopefully we can make money and avoid disasters.
Good Luck to you all!