TVO Market Barometer 8/31/17: One man’s folly is another man’s fortune

The month of August went out with a bang as markets rose back to previous highs on higher volume across the board. There’s little debate now that the big institutional players are back on the field, as Thursday marks the 2nd accumulation day since the recent market plunge (The first coincided with a TVO reversal on 8/22). After massive whipsaw moves and shakeouts, our SPY calls from mid-July are now back in the money… it was a rough ride, but staying the course and avoiding the tendency to overtrade does reap its rewards down the line, not only in gaining more profits, but also in gaining a lot more free time (There are still some mountains in NH to cross off the list this year).

Are we in the clear? Markets do have to digest the move (considering the move is done), but in the meantime our GI, General Investment Strategy, is right on the verge of shifting to “BUY” mode. This generally signals that we’re entering a healthy market environment suitable for long-term assets like your IRA portfolio. Some folks would say, “What kind of crazy fool would buy at these levels?”. We may never fully comprehend the forces that drive the market, but in the words of Warren Buffet, “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” -MD

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