Over the last 8 trading days so much damage has been done that I do not see a way that sell on all 3 charts can be avoided. Monday morning, we need a 2.7% move to the upside in order for the monthly to not fire a sell. Remember that pretty triangle or wedge we had awhile back? Well it broke right at the compression point, but unfortunately it broke hard to the downside. It broke so hard that it was impossible to get out logically.
Small Cap above is also in damage control. The Red dotted downtrend is still working and looks bad for the Small Cap. Monday we need a 3% move to the upside in order for the monthly not to fire a sell signal.
International gave us a lot of hope at the beginning of August that things were turning for this market and things were about to explode to the upside. Not to be. Monday we need a 5.7% move to the upside in order to not fire a sell signal. Ugly
Bonds on the daily chart fired a buy at the beginning of August, but it does appear as though it is failing apart. Warning 1 and 2 fired again this week. The solid red line is the selling point. Things are tight here.
Conclusion: For the first time in a very long time, I believe come the close at 4pm Monday, all 4 funds will be a sell monthly. So that means 100% G. My gut says this is crazy and after all this damage, the market is going to zoom in September. Even with that knowledge or feeling, I will stick to my rules and if it indicates a sell I will sell. I answered someone's comment on Facebook in the area of my TSP postings. Below is a cut and paste and it will explain why I will follow my rules.
My Facebook reply: Hope is not a strategy, I agree, but neither is fear. If this is the top, the monthly move will get you out soon. Not at the top, but it will get you out. Just look back to 2000 and 2007. Everyone wants to get out at the top to preserve capital, I do to. But, the person that claims that he does, just ask them one simple question. Can I see your profit and loss statement for the last 2 years or more so I can confirm those moves? Most will walk away or deny you the information. The purpose of the monthly moves is to discount the fear and news and ride the wave. You will never get in at the bottom or get out at the top, but you will get the meat out of the middle. Stay calm and make mechanical decisions.
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