My ICE system has given me an entry signal on SPY (S&P
500)… this system is slow to change and has less whip lash. It is not perfect as
no system is perfect, so I don’t want anyone reading this blog to think that as nothing is guaranteed in the stock market.
However this does mean that I will re-engage my positions in my 401K. My
withdrawal and re-entry probably cost me about 1% in returns versus having
stayed in; but I am willing to pay that price for keeping myself protected
against severe pullbacks or full blown down turns.
See chart on SPY below
My monthly 401K analysis shows that for my current employer
I should commit my monies into Fidelity Div Intl, Fidelity Large Cap and
Fidelity Blue Chip Growth based on my momentum method. See charts below. It is
interesting that my regular technical analysis signals on some of those charts
are giving exit signals… so what do I do? I will enter partially. My momentum
system has priority. Often it is situations like this that have frozen me from
taking any action.
For my previous employer’s 401K, the selections are Domini
Soc Eq, Spartan Ext Mkt and Fidelity Div Intl. Artisan MidCap Val Instl also
shows up right after that.
My quick In-and-out trading system on stocks is working
quite well. I see that my Rollover IRA has slowly crept upwards. I am not
taking large positions with that. I intend to test drive it for a year in a 200
– 500 shares per trade mode till I feel comfortable with it. I like how it
behaves on stocks like GD, HRS, RFMD, NUGT, X etc. I got a down signal on X and
next when the minor down signal popped in, sold vertical call spreads on X.
That was totally profitable and I am looking to close that position Monday on a
limit order.
I will write about that trade next week for those looking to use
options to make money in the stock market.
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