11/04/11
Stocks rallied on more noise out of Greece. The Dow gained 208-points but it is getting ridiculous that our markets are hanging on every rumor and statement coming out of Europe. The market likes a catalyst to use as an excuse. Oil, China, the dollar, gold, whatever, and right now Greece is the flavor of the day.
For the TSP, the C-fund was up 1.90% yesterday, the S-fund gained 2.29%, the I-fund added 2.18%, and the F-fund (bonds) slipped 0.21%.
The S&P 500 rallied off of some key support areas. Hopefully, the one day close below the 200-day EMA on Tuesday was a temporary break because we've now had 2 consecutive closes above it.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The head and shoulders neckline appears to be holding so far and that, along with the 200-day EMA, are the lines in the sand right now if we are going to start a new bull market.
Most of the major indices are in the same boat. The Dow rebounded in just the right place if you are a technician.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Although I showed a couple of concerning indicators yesterday, the NYSE overbought / oversold indicator is acting as if it has seen the lows.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
When market bottoms are being made and starting a new leg up, the overbought / oversold indicator can get pinned on the overbought side like we saw in early 2009 and twice in 2010. During these times, when the NYSE pulls back down to the neutral level, the market seems to resume the rally. This can go on for weeks or months - if in fact the bottom is in.
This morning (Friday) we get the October jobs report. Good or bad, watch for any negative reaction to find support at the levels we talked about in the Dow and S&P charts above. As I said, these are the lines in the sand that should hold if we are starting a new bull run.
Thanks for reading! Have a great weekend!
Tom Crowley
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
Stocks rallied on more noise out of Greece. The Dow gained 208-points but it is getting ridiculous that our markets are hanging on every rumor and statement coming out of Europe. The market likes a catalyst to use as an excuse. Oil, China, the dollar, gold, whatever, and right now Greece is the flavor of the day.
For the TSP, the C-fund was up 1.90% yesterday, the S-fund gained 2.29%, the I-fund added 2.18%, and the F-fund (bonds) slipped 0.21%.
The S&P 500 rallied off of some key support areas. Hopefully, the one day close below the 200-day EMA on Tuesday was a temporary break because we've now had 2 consecutive closes above it.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The head and shoulders neckline appears to be holding so far and that, along with the 200-day EMA, are the lines in the sand right now if we are going to start a new bull market.
Most of the major indices are in the same boat. The Dow rebounded in just the right place if you are a technician.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Although I showed a couple of concerning indicators yesterday, the NYSE overbought / oversold indicator is acting as if it has seen the lows.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
When market bottoms are being made and starting a new leg up, the overbought / oversold indicator can get pinned on the overbought side like we saw in early 2009 and twice in 2010. During these times, when the NYSE pulls back down to the neutral level, the market seems to resume the rally. This can go on for weeks or months - if in fact the bottom is in.
This morning (Friday) we get the October jobs report. Good or bad, watch for any negative reaction to find support at the levels we talked about in the Dow and S&P charts above. As I said, these are the lines in the sand that should hold if we are starting a new bull run.
Thanks for reading! Have a great weekend!
Tom Crowley
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
