This last week Investors Business Daily said the “uptrend confirmed”. It was a switch from “market in correction” a week ago. Since 1950 on average between May 1 and Oct 31 the Dow Jones Industrial Average averaged a gain of 0.3% while between Nov 01 and Apr 30 it averaged 7.5%. The sell in “May and go away” period is a hard time to make money. However the Federal Reserve Board is buying $3B worth of investments a day so the market will probably continue up regardless of the month.
Stossel presents an interesting weekly program on Fox Business News. Last week he covered the Surgical Center of Oklahoma which posts its complete prices online. When it first started, Canada was the home of most of the patients but now patients come from all over the US. The director pointed out that some potential patients have used the online pricing guide to get the same price in their home hospital. Seems the prices at most hospitals are 5 to 6 times higher than at the Surgical Center of Oklahoma. There are a couple of interesting videos on the center on YouTube.
The sum of the deviations (674,900,1115) is up for the last two weeks – time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Last week there were 5 funds with increasing two week deviations out of the 137 Fidelity funds I follow. I use the increasing two week deviation as one of the criteria when I buy a fund. This week only 16 funds do not have increasing two week deviations.
My current investments:
SConstruction&Housing has a price of $54.92, a sell price of $52.17, a relative rank of 17, and is a hold.
SAirTransportation has a price of $47.54, a sell price of $45.16, a relative rank of 12, and is a hold.
SmallCapDiscovery has a price of $27.61, a sell price of $26.48, a relative rank of 30, and is a hold until it falls below the sell price or I need to sell it to buy a better fund.
SmallCapValue has a price of $19.71, a sell price $18.72, a relative rank of 04, and is a hold.
JapanSmallerCompanies has a price of $13.33, a sell price $12.66, a relative rank of 01, and is a hold in my IRA#1 and a buy in my IRA#2.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Invest 20% in JapanSmallerCompanies