The Dow gained a respectable 63-points on Wednesday while the broader indices saw minimal to slight gains from 0.03% in the Nasdaq, to 0.17% in the small caps, and 0.18% in the S&P 500. You can see in the intraday charts below that the action was choppy, but it was actually a quiet day overall, with narrow ranges in the indexes from a small loss to those modest gains.
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The trade headlines continue to be the catalysts and although there was some warnings from China newspapers suggesting a possible catastrophic impact on global stocks if the U.S. imposed new tariffs on the Chinese, the market barely blinked.
The Fed minutes gave the market some brief volatility but other than some contradicting statements on the balance sheet, the market didn't hear anything to change the ultimate direction of stocks.
After the bell Fitch Rating system placed downgrade warnings on the United Kingdom's 'AA' debt rating based on growing uncertainty around Brexit. Again, no hint of concern from the futures markets.
With little happening, we'll make this quick. It's tough to talk about the same thing everyday when nothing changes. I'm just glad you're still stopping by, though. Things will will get more interesting eventually. I promise.
The S&P 500 / C-fund is near the top of its most meaningful range between about 2600 and 2800, despite a few extreme moves above and below those levels. The inverted head and shoulders pattern might suggest a pullback to form a right shoulder, but so far the bears have not been able to put the breaks on the rally.
The DWCPF (S-fund) moved above the October highs this week but this is still an area where the bears could make a move, but so far there's been no sign of them.
The EFA (EAFE Index / I-fund) pushed above its 200-day average and the November highs this week, but if we want to get picky, yesterday's action showed a slight negative reversal with that little tail on top of the candlestick.
The dollar reversed yesterday as well, to the upside, causing that negative tail on the EFA chart. It got a bounce off the 20-day EMA after the Fed minutes were released.
The AGG (Bonds / F-fund) was basically flat but it is holding above that support line so bond traders are not selling yet, even though stocks have been the better place to be this year. Normally I'd expect to see bonds falling in this kind of stock market environment.
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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[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[TD][/TD]
[TD="align: center"]
[/TR]
[/TABLE]
The trade headlines continue to be the catalysts and although there was some warnings from China newspapers suggesting a possible catastrophic impact on global stocks if the U.S. imposed new tariffs on the Chinese, the market barely blinked.
The Fed minutes gave the market some brief volatility but other than some contradicting statements on the balance sheet, the market didn't hear anything to change the ultimate direction of stocks.
After the bell Fitch Rating system placed downgrade warnings on the United Kingdom's 'AA' debt rating based on growing uncertainty around Brexit. Again, no hint of concern from the futures markets.
With little happening, we'll make this quick. It's tough to talk about the same thing everyday when nothing changes. I'm just glad you're still stopping by, though. Things will will get more interesting eventually. I promise.
The S&P 500 / C-fund is near the top of its most meaningful range between about 2600 and 2800, despite a few extreme moves above and below those levels. The inverted head and shoulders pattern might suggest a pullback to form a right shoulder, but so far the bears have not been able to put the breaks on the rally.
The DWCPF (S-fund) moved above the October highs this week but this is still an area where the bears could make a move, but so far there's been no sign of them.
The EFA (EAFE Index / I-fund) pushed above its 200-day average and the November highs this week, but if we want to get picky, yesterday's action showed a slight negative reversal with that little tail on top of the candlestick.
The dollar reversed yesterday as well, to the upside, causing that negative tail on the EFA chart. It got a bounce off the 20-day EMA after the Fed minutes were released.
The AGG (Bonds / F-fund) was basically flat but it is holding above that support line so bond traders are not selling yet, even though stocks have been the better place to be this year. Normally I'd expect to see bonds falling in this kind of stock market environment.
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.
