4/05/12
Stocks pulled back yesterday as the hangover continued from Tuesday's announcement from the Fed that easy money may not be as easy as it has been. The Dow lost 125-points.
As RevShark put it yesterday, "Quantitative easing has been crack cocaine to this market and now we are starting to see some withdrawal symptoms."
For the TSP, the C-fund was down 1.02% yesterday, the S-fund lost 1.50%, the I-fund dropped 2.33%, and the F-fund (bonds) was up 0.13%.
The S&P 500 pulled back to the bottom of the rising trading channel and the 20-day EMA. Now comes the test.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This week is a holiday week and sometimes the trading can be out of whack, but historically the Thursday before Good Friday has been very strong, and the Monday after - not so much.
Chart provided courtesy of www.sentimentrader.com
The jobs report comes out on Friday morning but the market is closed for Good Friday, so we'll have to wait until Monday to see how it reacts. The TSP is also closed on Friday so where ever you want your money allocated on Monday morning will have to be determined today (Thursday.)
Thanks for reading! Have a great weekend, and Happy Easter!
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.
