Probably the worst week I’ve ever had in investing. Everything is to be sold.
I really expected a big rebound this week. I expected the federal reserve board to say something. I expected the plunge protection committee to intervene. So much for expectations. The unemployment numbers looked good today and yet the market closed down. In bear markets good news is bad and bad news is worse. In bear markest you sell on bounces. Based on some of the business news shows, this is the worst first week of a year in market history.
Last week 43% of the Nasdaq stocks were above their 50 day average. This week the number is 37%. At major market bottoms the number is close to 20%. The 50 day average is significant because major investors use that as a indication of when a stock should be sold.
IBD TBP’s Market Pulse is “Market in correction” as of 12/29/15 – Not a time to invest.
It took 6 days for the “Confirmed Uptrend” to be turned into “Market in correction.” It looks like the major investors did all they could to keep the market from going down significantly before year end so their numbers would not look too bad. Then when the year ended, they had no reason to continue to “paint the tape.”
My current investments:
IRA#1 and IRA#2
SRetailing has a price of 98.70, a sell price of 103.16, a rank of 08, and is a Sell. (ETF – XLY)
IRA#2
SSoftware&ComputerServices has a price of 113.13, a sell price 118.38, a rank of 11, and is a Sell. (ETF – MTK)
SConsumerDiscretionary has a price of 32.10, a sell price of 33.88, a rank of 42, and is a Sell. (ETF – FDIS)
STechnology has a price of 109.98, a sell price of 115.61, a rank of 50, and is a Sell. (ETF – IGM)
My funds lost between 6.06% to 6.87% this week. Every ETF I owned was sold this week when its 7% stop loss was hit.
My portfolio changes this weekend:
IRA #1 – Sell SRetailing
IRA #2 – Sell SRetailing, SSoftware&ITServices – new name, SConsumerDiscretionary, STechnology
My portfolio market exposure after this weekend’s changes:
IRA #1 – 00% invested
IRA #2 – 00% invested