So it happened again. On Wed about 2PM the Federal Reserve Board (FED) suggested that sometime in the future they may decrease (taper) their monthly bond purchase of 85B. The market started down, tanked on Thursday, and started down on Friday. About 12PM the FED came out and said the future may not be as good as we thought so taper may not take place and the decline stopped. Last September when the market started down, the FED revived it by deciding to double their bond buying to 85B. Perhaps by next month the FED will be buying 170B in bonds per month. All this printing of money (the FED now has 3T+ in bonds) is the only thing keeping the market going.
The sum of the deviations (841,691,328) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is below its 50 day moving average and the average is decreasing – Not time to invest. Both trends are not up so it is not a time to invest.
My current investments:
SConstruction&Housing has a price of $52.73, a sell price of $54.85, and I am selling it.
SAirTransportation has a price of $46.98, a sell price of $46.34, a relative rank of 09, and is a hold.
SAutomotive has a price of $46.64, a sell price $45.67, a relative rank of 02, and is a hold.
SBrokerage&InvestmentMgnt has a price of $58.98, a sell price $59.58, a relative rank of 05 and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Sell SConstruction&Housing