Thought for the day, plus some posts of interest!
Last week was very volatile with huge swings each day (see chart below). The S&P has had a retracement of only -4.44% from its high of 2134.72 on 5/20/15 to the low put in on 7/7/15 of 2044.02, so no correction yet! I haven't been trading much lately, and will try to wait until I see at least a short term trend up for a couple of swing plays.
Where we go from here is anyone's guess with the Greece and China news over-hanging the markets, but putting that aside, I think we may go back up for a short period. Look at the S&P weekly chart below and notice that over the past 3 years the blue line which is the 50 SMA (Simple Moving Average), has been a line of support 3 times previously and we are bouncing off of it again as of last week. I think eventually we will violate it since a 10% plus correction is way overdue for the markets and would be healthy!
All of my investments are still holding up well, but not much gains so far this year, except in Healthcare. Since I converted over half of my portfolio to income and growth a couple of years ago, I'm still getting some nice dividends and capital gains from them, so that is what is important to me right now. However, last week I did sell my junk bond fund Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) since it has been in a decline for a while. Even though it was a nice dividend producer, I wanted to keep my current principal and I don't see any good signs in holding most bond funds when the FED does raise interest rates!
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