Which fund looks good?

We've had two relatively flat days so I'm not the only one who doesn't know the next direction.  I will continue to assume we are in a trading range which means buy pullbacks near support and sell rallies near old highs.

I am currently 50% in the G fund and 50% in the C fund.  Is the C fund the place to be now?  When the time comes to add more to the stock funds which funds should we favor? 

When the VIX (volatility index) is low and the yield curve (the ratio of the 10-year note to the 2-year note) is flattening (like now), investors tend to favor "safe” large cap stocks, rather than the more speculative small and mid-cap stocks.  Value stocks also outperform the growth stocks across the board so we are seeing signs to stick with the C fund rather than S.

                    
                         Chart provided courtesy of www.sentimentrader.com

I wrote about the dollar yesterday being a catalyst for the I fund.  We need to watch if the dollar continues to rally or if it succumbs to resistance. 

The F fund is not a consideration for me right now.  Bonds appear to be topping as interest rates continue to be raised.

That 50% I have in the G fund could end up in the C fund if we get a pullback, or the 50% I have in the C fund could end up in the G fund if we stretch much more to the upside.  There's not much more to it than that for me right now.  We're in limbo.

That's all for today.  Currently 50% G, 50% C fund.  See you tomorrow.