Monday, July 16, 2012

Whipsaw Signal -- Moving Back to G-Fund

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With the close of markets on Friday, July 13th, the TSP models are signaling a move to G-Fund.  This is a short-term whipsaw and is due to the failed breakout of the C-, S-, and I-Funds from the previous signal.  Volatility is on the rise, but prices are not, and this divergence has historically not been favorable over the long term.

Effective immediately, I am transitioning back to 100% G-Fund and due to the 2x / month change rule, will be here for the remainder of the month.  If today is not too bad in terms of close we may exit this trade near -0.6% for C-Fund, +1.2% for S-Fund, and -1.5% for I-Fund.

Cash (G-Fund) is king.

Regards,

Paul

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