Not a good week in the market. This was the biggest down week in two years. Not one of the 130 mutual funds I follow has had an improving deviation from its moving average over the last two weeks. That is my normal criteria for a fund I may consider buying. Gary Kaltbaum in his Friday night radio show pointed out that the US market generally follows the direction of the German Market – the DAX. The DAX fell below its 50 day moving average in early July, fell below its 200 day moving average Thursday, and is now 2.9% below the 200 day moving average. Good things do not happen when an index is below a 50 day moving average and only bad things happen when an index is below a 200 day moving average. There are significent indicators that a market top is near, as there have been for months, but as long as the Fed is printing money there will probably not be a market correction.
IBD TBP’s Current Outlook is “uptrend under pressure” – NOT a time to invest. I am surprised they have not change the outlook to “market in correction.”
My current investments:
Nordic has a price of 46.46 a sell price 46.94, and is a sell.
SAirTransportation has a price of 63.77, a sell price 64.21, and is a sell.
SElectronics has a price of 76.13 a sell price 75.53, a relative rank of 01, and is a hold.
STransportation has a price of 81.26, a sell price of 80.16, a relative rank of 09, and is a hold.
SNaturalGas has a price of 43.83, a sell price 43.84, and is a sell.
My portfolio changes this weekend:
IRA #1 – no change
IRA #2 – Sell Nordic, SAirTransportation, and SNaturalGas.
My portfolio market exposure after this weekend’s changes:
IRA #1 – 40% invested
IRA #2 – 100% invested