Old Dix TSP Blog: If you’re playing this market, it has to be stressful for you!! The Charts.

What a mess to read. What a mess to try to invest in. On top of that, if you’re playing in this type of market with your retirement money, you have to have a high tolerance for volatile markets. I want to be invested and try to bottom fish, but I will resist until the last trading week of September. Maybe at that point I will feel like I have a read on what’s going to happen. Right now it is really messy.

So Tuesday the 15th I made a blog post that this could be the beginning of the breakout. It appeared at the time that it was going to be against the grain and be to the upside. Since we all knew that the FMOC was going to speak on the 17th, this seemed a bit early for the markets to start upside. So Thursday after Yellen spoke and did nothing with interest rates, I kind of thought, here we go, the markets are going to rip to the upside. But no, they spiked up and then faded to a loss by the close. Friday was just a sick sell off. That sell off basically wiped out all the gains of 3 days of trading. We also closed almost at the exact price at the point of the symmetrical triangle. That’s some weird stuff right there.

Ok, so during last weeks trading, we flirted with a daily buy signal but it was quickly rejected. Next week we really have to watch the last 2 pivot lows and see if they hold. They are pointed out in orange. If they both fail, look out. Either way, the indexes right now are just a mess and I would rather just sit back and watch and see what happens.

The Small Cap basically followed the same exact path as the S&P 500. All I can say is the next few trading weeks are going to interesting to see which way it breaks. It will also be interesting to see who calls it right and actually bets on it. I’ll make it perfectly clear to all, I have no idea which way this thing is going to break. Zero!!

The International index didn’t accomplish anything all week with the exception it slid sideways. The key levels to hold above are also marked in orange.

So come Tuesday, Bonds fired a sell signal.Wednesday it confirmed. Thursday prices raced back up to the safe levels and then Friday almost fired another buy signal. Your watching right here now live why I finally had to give up watching the daily signals. They would just jerk you in and out of the market and you would run out of moves in a one month period. So, we have nothing now that is a buy on any level except the G-fund. What a mess.

There is a side note that is worth mentioning. This is how Warren Buffet makes money. When everything is getting beat up, he’s buying. When everything it up, he is selling. Most of us mortals do not have the guts. Me included.