Wednesday, March 1, 2017

Reducing Stock Holdings

I am cutting back stock holdings in my TSP (Government retirement acct) to 25%-stocks in the S&P 500 (C-fund). 
We made another milestone today. There have only been 4-down days in the last month of trading for the S&P 500.  That’s only happened 7-times in the last 7-years.  The last time it occurred was July of 2013 and the S&P 500 slipped about 4-5% afterward.  Further, today looks like a blow-off top with higher volume (+10% above the monthly average) and probably a good bit of short covering. That has resulted in a statistically significant day in my system.
Considering my poor short-term trading recently, I am taking a very conservative approach at this time with long-term funds.  I don’t see that this is a major top, but one never really knows. 
TSP: 25% C-fund (S&P 500)
          75% G-Fund (Government securities fund)