January 1, 2016

Happy New Year, everyone!  I hope and trust you all had a fun, safe, pleasant holiday season.  Ours was nothing out of the ordinary, meaning it was very enjoyable.  It’s now time to take down our only decorations, the Christmas cards we received. 😀  Talk about a B Minus holiday, thanks to our remodeling job.

December 2015 was a crazy month for stocks, and almost everything lost some ground.  Taking a look  at Meb Faber’s Timing Model, The only thing to hold onto is the REIT EFA, RWR.  Everything else has sunk below the 10-month moving average.  In the Big Charts version, SPY is now neutral, with MACD negative.  Same with DIA. Since most indicators are negative right now, I’ll sell SPY and DIA. IEF is also a sell.

Thanks, Fed.  Isn’t it stupid how the market reacts to a 0.25% increase in interest rates?  Wow, I’m going to put all my money in the bank now… NOT!!!  With good safe dividend stocks throwing off over 4%, it still makes sense to hold on to them, folks!

In my personal timing model investments, the only things to hold on to are RWR and QQQ.  So, in summary, here’s what to do:

SPY–Sell; QQQ–Hold; DIA–Sell; MDY–Sell; IWM–Sell; EFA–Stay Out; EEM–Stay Out; RWR–Hold; DBC–Stay Out; IEF–Sell

So, here’s the picture from Big Charts and please refer to Meb Faber’s Timing Model for the rest.

Chart reference

So, now I’m off to sell everything but RWR and QQQ.

Oh, and I plan to buy the following stocks for dividends this month:

1/5/2016 — VZ

1/11/2016 — POT

1/14/2016 — CAT

The dividend stock I already have are still paying off nicely, even though they are down at the moment.  As long as they give off a decent income, I’ll hold them.

OK, that’s all for this month, and good luck and a happy, prosperous New Year to all.

 

~B-

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