Sunday, February 3, 2013

401K Monthly Analysis – Bulls keeps Running 2/2/13


SPY keeps roaring upwards. I keep telling myself every week that I have no idea where the market is going and that I must follow my own technical chart directions as it will make riches beyond my dreams... my own money tree...  and better than any of the talking heads on TV or those who sell market predictors. What gets me off my game is listening to someone else instead of shutting everything external out and doing my own thing. 
My wife made an interesting comment yesterday regarding a subscription offer I was considering. The offer was to follow signals that would generate a minimum of 20% yearly gain in your R/IRA type account, with a target performance based on the last 10-11 years at over 40% yearly gain each year. A small sum like $100 becomes $66,000 in that period when allowed to compound. The charge for the service? Only $16 per month. Yes I am rounding off from memory but the amount was very reasonable. I was considering subscribing not because I cannot devise a system myself; but because it would be a hedge against my own mechanizations. My wife says – you know people who sell things don’t have the performance – if he could make that much money why would he bother selling it? Maybe she is right. Maybe… but what if she was wrong and here was the golden goose? I have chased golden geese before. Never once were they close to being what they promised. Still, I know this source and somehow trust the back testing….

Back to the markets and my monthly 401K analysis. First, my chart on SPY nailed the move up. It generated several great signals for entry, starting from 12/4/12 and the last one being on 1/8/13. When I look at my previous employer based 401K account, the funds to be in are T Rowe Price Intl Disc, Fidelity Invst Divers Intl and Spartan Ext Market Index. The Vanguard Explorer Admiral is next.
With my current employer, the choices are WFA SPL Midcap VL, Royce opportunity, Fidelity Invst Divers Intl and Fidelity Growth Strategies.

Attached below are charts of SPY (ETF), WFA SPL Midcap VL and Fidelity Invst Divers Intl mutual funds with my trading systems on them. 







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