Discuss Market Comments 12/27

Short, low volume, holiday week- This should be an interesting week as the normally positive holiday week faces a market that is stretched to the upside, and with low volume trading expected, anything can happen...

Market Commentary for 12/27/10

Current Daily Market Commentary

 

[churejita]

So this is the first "sell" signal from the sentiment survey that I have seen in my short time here. Tom, you mentioned that the funds will be moved over to the G, but why not the F? I understand that the G is guaranteed to increase, but isn't there some relationship between stocks and bonds that suggests that when one goes down, the other goes up? So, is the G superior to the F for Bears, or does it really matter?

Thanks!

 

[tsptalk]

No reason other than simplicity and it was basically a stocks or cash decision. But if someone chooses to use F instead of G, that's fine.

To add bonds would have to add a lot of thought process, and the more human intervention - the more room for error.

Right now, bonds yields are rising and that means bonds and the F-fund are falling. Plus, you can't move to F on a 3rd IFT for the month. Too much to factor in for this very basic system. As James said, if it ain't broke....