On Wednesday the fed chief suggested they may end quantitative easing soon and stop buying $85b in bonds each month so the market decided to go down. On Thursday more fed officials talked and suggest it would really not be very soon and the market started to recovered. There should not be any doubt that the $85b the fed is printing each month is keeping the market going.
Investors Business Daily says the market is still in a confirmed uptrend. They do point out that there has been 2 recent distribution days for the S&P500 and Nasdaq. The market trend will change after 4 to 5 distribution days over the last 4 to 5 weeks. They use distribution days (market down and volume up) as a sign the big investors are selling.
The sum of the deviations (1202,1306,1038) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up so it is not a time to invest. Last week 85 funds of the ~130 I follow qualified as a buy – improving deviation for the last 2 weeks. This week 3 funds are qualified buys. JapanSmallerCompanies fell 9%+ and is a sell. It has a short term redemption fee of 1.5%, however since it can drop 2%+ in a day (Friday), I am going to sell and pay the redemption fee.
My current investments:
SConstruction&Housing has a price of $57.40, a sell price of $54.85, a relative rank of 05, and is a hold.
SAirTransportation has a price of $48.39, a sell price of $46.34, a relative rank of 08, and is a hold.
SAutomotive has a price of $46.90, a sell price $45.67, a relative rank of 01, and is a hold.
JapanSmallerCompanies has a price of $12.25, a sell price $12.82, a relative rank of 03, and is a sell in my IRA#1 and a sell in my IRA#2.
SBrokerage&InvestmentMgnt has a price of $62.58, a sell price $54.85, a relative rank of 02 and is a buy for my IRA#2.
My portfolio changes this weekend:
IRA #1 – Sell JapanSmallerCompanies
IRA #2 – Sell JapanSmallerCompanies