Hello folks
Today June 5, 2014, was the first day that the indexes flashed the upward “oompth” and thrust that I had been waiting for.
Tomorrow, June 6, is the release of the “jobs report”….jobs are very important for economic stability, home purchasing, consumer spending, and is an indicator of how our economy is doing. Ideally, the markets respond positively.
I am not taking any action until we clear the jobs report. Some of my loyal readers have reminded me that the indexes have hit new highs and why are we in G-Fund. Yes, correct, and many of the readers are really developing an eye for things. However without volume to support new highs, things can collapse suddenly.
Today, we saw much improved volumes on the indexes, with upward price action. That is finally what we have needed to see. The prior weeks of hum-drum, lackluster, price drifting upward (movement which indeed triggered “new highs” but more things needed to be considered), on low volume, witnessed a clear behavior change today.
The past two weeks have seen the small cap stocks (S-Fund) outperform other stocks, so that will likely be the place to move, pending tomorrow’s market action.
Thanks for the great emails and me personally, (yes a little risk averse), I am waiting until the market digests the jobs report. A “good report” can go both ways, the market may digest this as good news, that the economy is doing well, however the market may say “hey, rate increases are that much more of a reality, and they may occur sooner” and the markets go down. So as we have seen in the past, “good news” can cause many market reactions.
Our job is not to crystal-ball things, but REACT to the trends and market behavior.
I am 100% G-Fund, hopefully not much longer.
Thanks for reading !
– Bill Pritchard
