Thread: clester's Account Talk

New highs are good. But we will have a definite divergence in price/rsi if the rsi doesn't make a new high. Which will be very hard. This divergence doesn't mean a correction is imminent but it will happen. So, I'm being patient. I remain 50% in stocks because we are in a bull market.

Originally Posted by clester

New highs are good. But we will have a definite divergence in price/rsi if the rsi doesn't make a new high. Which will be very hard. This divergence doesn't mean a correction is imminent but it will happen. So, I'm being patient. I remain 50% in stocks because we are in a bull market.

The divergence is in place.

C fund is overbought again via RSI. (About 72) but S fund is not.

Originally Posted by clester

C fund is overbought again via RSI. (About 72) but S fund is not.

RSI at 78 today. An 80 and I have a sell that will override all other rules

Looks like asia futures are turning lower for thursday. Probably a good time to move to safety. As they say, true investors sell in over bought markets and I believe we've been overbought for awhile now.

Unless...Trump announces his 'phenomenal' tax cuts. What if it is really phenomenal? Haha. So many variables right now. I think I'll stay put in the S fund for a bit longer.... (nervously laughs)

Cramer said to stay long because the earnings and conditions were so good. Not sure if that is good or bad.

Originally Posted by pmaloney

Cramer said to stay long because the earnings and conditions were so good. Not sure if that is good or bad.

I have done well in the past by doing the exact opposite of what Cramer says. lol

The overbought sell doesn't mean we will go into bear market. It just means we should have a pull back. How much nobody knows. We should at least pull back to the 50 or maybe 200 Dma

S&P RSI is over 80. That's a sell for my system. It's an extremely overbought reading. Going 100% G.

Originally Posted by clester

S&P RSI is over 80. That's a sell for my system. It's an extremely overbought reading. Going 100% G.

I'm glad I have about 25% of my money in stocks in various ira accounts. But it sure feels dangerous here. C fund is way overbought but S fund isn't. That's odd too. Idk what to make of it.

Originally Posted by clester

I'm glad I have about 25% of my money in stocks in various ira accounts. But it sure feels dangerous here. C fund is way overbought but S fund isn't. That's odd too. Idk what to make of it.

Well if it is any comfort, the C fund had 4 down days in February, while the S fund had 8 down days. Perhaps that is part of it...

For February, the S&P started the month at 2279.55 and ended at 2363.64, a gain of roughly 84 points, while DWCPF started at 1174.77 and ended the month at 1203.89 and gain of only 29 points.

Seems to me that the S fund was consolidating while the C fund was full steam ahead. Looking ahead, I would think the S fund regains the lead in March.