Stocks did an about face after Tuesday's sell-off as we saw those losses erased in most of the major indices. The Dow gained 144-points on the day after Tuesday's 99-point decline while the Nasdaq, which was Tuesday's loser falling 1.6% on the day, gained back 1.4% on Wednesday. The Transports and small caps joined the Nasdaq with plus 1% gains.
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After the close yesterday the Fed cleared all 34 banks that underwent a stress test and that helped keep the rally going in after hours trading. So this financial ETF (XLF), which closed at 24.52 on Wednesday, was asking 24.86 after hours, as of this writing, or another 1.4% gain.
The market seems to find a reason to rally before major holidays, but don't forget that the action after a holiday can reverse the pre-holiday trend. The 4th of July however, has a lot of green surrounding it.
Chart provided courtesy of www.sentimentrader.com
Administrative note: Question for you... I've been toying with the idea of either moving to a video commentary, or supplementing the current commentary with a video compliment. I'm not sure. I don't want to make more work for myself... on the contrary. My wife is getting close to retiring and while I don't plan to fully retire from running the website, I wouldn't mind looking for ways to cut down on the time I put into the commentaries, without hurting the content. If I could crank out some 10-15 minute videos each day, it might (not sure) help do that, and you may actually get more content because it's easier to talk than to write everything down.
So the question is, and if you wouldn't mind taking this survey, would you prefer a written commentary or a change to a video version, some or all of the time, with the understanding that my attempt is to take less time in producing the material. >>> Click here to take Survey - Thanks!!
The SPY (S&P 500 / C-fund) was in an "F" flag formation and it looked like on Tuesday that it was going to do what they eventually tend to do, which is break to the downside. But once again, it didn't take long for this market to snap back from a one or two day sharp decline. If you blinked, you missed it, and you would have had to have been pretty brave to buy during Tuesday's precipitous sell-off.
The DWCPF (S-fund) looks the best here as it has a solid looking bull flag as opposed to the "F" flag in the S&P. Of course the flag could easily pull back to the bottom of the flag again, but bull flags tend to break to the upside, so any further upside during the holiday trading days would constitute a bull flag breakout.
The financials rallied, as did most of everything yesterday, even the lowly energy stocks. The problem with energy is that it remains in a downtrend and it has formed a clear bear flag so I don't know if this one will tag along. But, it is common to see the trend get broken prior to a holiday, only to have that trend resume after the holiday.
The Dow Transportation Index made a higher high but only made it to the next level of resistance. One step at a time here, but this looks like a fairly bullish flag that is just starting to breakout - if it's not a pre-holiday fake out.
The Nasdaq 100 has been the big mover over the last several days and it has been the hardest hit with the most technical damage dine. On the bright side, the 50-day EMA held like a charm for the 4th time and posted a positive reversal day after actually making a lower low on Wednesday before the rally started.
The AGG (Bonds / F-fund) broke down in early trading but managed to crawl back above that support line of the rising trading channel (red). There is still open gaps both above and below the current levels that will both be vying for attention.
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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.
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After the close yesterday the Fed cleared all 34 banks that underwent a stress test and that helped keep the rally going in after hours trading. So this financial ETF (XLF), which closed at 24.52 on Wednesday, was asking 24.86 after hours, as of this writing, or another 1.4% gain.
The market seems to find a reason to rally before major holidays, but don't forget that the action after a holiday can reverse the pre-holiday trend. The 4th of July however, has a lot of green surrounding it.
Chart provided courtesy of www.sentimentrader.com
Administrative note: Question for you... I've been toying with the idea of either moving to a video commentary, or supplementing the current commentary with a video compliment. I'm not sure. I don't want to make more work for myself... on the contrary. My wife is getting close to retiring and while I don't plan to fully retire from running the website, I wouldn't mind looking for ways to cut down on the time I put into the commentaries, without hurting the content. If I could crank out some 10-15 minute videos each day, it might (not sure) help do that, and you may actually get more content because it's easier to talk than to write everything down.
So the question is, and if you wouldn't mind taking this survey, would you prefer a written commentary or a change to a video version, some or all of the time, with the understanding that my attempt is to take less time in producing the material. >>> Click here to take Survey - Thanks!!
The SPY (S&P 500 / C-fund) was in an "F" flag formation and it looked like on Tuesday that it was going to do what they eventually tend to do, which is break to the downside. But once again, it didn't take long for this market to snap back from a one or two day sharp decline. If you blinked, you missed it, and you would have had to have been pretty brave to buy during Tuesday's precipitous sell-off.
The DWCPF (S-fund) looks the best here as it has a solid looking bull flag as opposed to the "F" flag in the S&P. Of course the flag could easily pull back to the bottom of the flag again, but bull flags tend to break to the upside, so any further upside during the holiday trading days would constitute a bull flag breakout.
The financials rallied, as did most of everything yesterday, even the lowly energy stocks. The problem with energy is that it remains in a downtrend and it has formed a clear bear flag so I don't know if this one will tag along. But, it is common to see the trend get broken prior to a holiday, only to have that trend resume after the holiday.
The Dow Transportation Index made a higher high but only made it to the next level of resistance. One step at a time here, but this looks like a fairly bullish flag that is just starting to breakout - if it's not a pre-holiday fake out.
The Nasdaq 100 has been the big mover over the last several days and it has been the hardest hit with the most technical damage dine. On the bright side, the 50-day EMA held like a charm for the 4th time and posted a positive reversal day after actually making a lower low on Wednesday before the rally started.
The AGG (Bonds / F-fund) broke down in early trading but managed to crawl back above that support line of the rising trading channel (red). There is still open gaps both above and below the current levels that will both be vying for attention.
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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.
