Stocks resumed their losing was on Wednesday as the Dow shed another 252-points and losses of greater than 1% were seen across the board. It's the worst start to a new year since 2008.
What's interesting is that in all of the last three days, and you can see below that the stock funds are down 2.6% to 3.2% for the year, stocks rallied in the afternoon to close well off the loss. It doesn't look like much in the intraday chart below, but that is a 100-point rally off the 3 PM low.
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[TD="align: center"] Daily TSP Funds Return
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The price of oil was in free-fall on Wednesday losing nearly 6% on the day and closing pennies above $34 a barrel.
On Friday morning we get the December jobs report and estimates are looking for a gain of 200,000 jobs, and an unemployment rate of 5.0%. The Jobs Report Contest is now open in the forum. Click here
The SPY (S&P 500 / C-Fund) is still flirting with the lower end of what could be a bull flag. It's a large flag that needs to hold or the S&P will likely go the way of the Transports and small caps, which are both still in bear markets.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (small caps / S-Fund) is in a sharply descending trading channel and reaching toward the lower end of the falling support line.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The price of oil lost nearly 6% yesterday, falling to a new multi-year low and possibly starting a new leg down.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The German DAX shows the problem with many European and Asian markets. Most are trading below their 50-day EMA's and have broken down from bear flags. There was some support at December's low and we saw a little rebound of that low on Wednesday.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-Fund) rebounded strongly as we finally saw a bit of a flight to safety. Both bonds and gold had big days on Wednesday so there was a little nervousness out there.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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.
What's interesting is that in all of the last three days, and you can see below that the stock funds are down 2.6% to 3.2% for the year, stocks rallied in the afternoon to close well off the loss. It doesn't look like much in the intraday chart below, but that is a 100-point rally off the 3 PM low.
[TABLE="width: 89%, align: center"]
[TR]
[TD="width: 180, align: center"]
[TD="width: 49, align: center"][/TD]
[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The price of oil was in free-fall on Wednesday losing nearly 6% on the day and closing pennies above $34 a barrel.
On Friday morning we get the December jobs report and estimates are looking for a gain of 200,000 jobs, and an unemployment rate of 5.0%. The Jobs Report Contest is now open in the forum. Click here
The half-hearted rally on Tuesday showed us that the bulls were not really ready to take charge, and that the bears were still in control. On Wednesday that thought turned into reality as the bears pushed on the gas peddle. The North Korean hydrogen bomb test and plummeting oil prices gave them their catalyst.
The SPY (S&P 500 / C-Fund) is still flirting with the lower end of what could be a bull flag. It's a large flag that needs to hold or the S&P will likely go the way of the Transports and small caps, which are both still in bear markets.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (small caps / S-Fund) is in a sharply descending trading channel and reaching toward the lower end of the falling support line.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The price of oil lost nearly 6% yesterday, falling to a new multi-year low and possibly starting a new leg down.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The German DAX shows the problem with many European and Asian markets. Most are trading below their 50-day EMA's and have broken down from bear flags. There was some support at December's low and we saw a little rebound of that low on Wednesday.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-Fund) rebounded strongly as we finally saw a bit of a flight to safety. Both bonds and gold had big days on Wednesday so there was a little nervousness out there.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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.
