The Volatility Index (VIX) has spiked to over 30 as I sit down and have my morning coffee. Now, for those that aren’t a nerd like I am, let me explain what this means and why it really concerns me.

The VIX is also known as the “fear index”. A VIX over 20 is considered a panic and panic selling (of stocks has caused this). A VIX over 30 is a mania.

I am a “chart guy”. I don’t like to trade or give advice based off of headlines (although this past week that would have worked). I follow the charts. The S&P 500 Index (US Stock market) in past week has fallen below it’s 50 day moving average. This breach creates a lot of “programmed” selling. Normally, the markets (institutional investors) would try to defend this breach and push the markets above the 50 day line.

There has been no attempt to defend this breach. Which means that there is a very real possibility that the 200 day moving average will be breached and this would be cause for a prolonged concern about the viability of making money in the current markets.

And with the VIX over 30, this is a real possibility. There have already been a couple of trillion dollars lost in the markets this week. With a mania, there is no end in sight when this might stop.

To quote Eminem, this is what happens when a tornado (possibility of Bernie Sanders getting the Democratic nomination) hits a volcano (Coronavirus).

For all of our Plan Confidence clients using the Semi-Tactical strategies, hopefully you saw the email and push notifications yesterday morning (before the markets opened) of the changes you should have implemented in your 401k, 403b or TSP plans! If not, log in today and take action!

For those of you not using our advice service for your 401k, 403b, or TSP plans, talk to your financial adviser for what to do with the money in your retirement plan. If you don’t like the answer, or if you want ongoing, personalized advice for your retirement plan, sign up for our service. We are offering a 30 day free trial and then just a dollar a day thereafter ($29.99 per month). And yes, this was a SHAMELESS PLUG!

Be sure to tell your friends, family and co-workers to check out this blog and website.

Plan confidently my friends!

-Kevin