09/05/13
Stocks opened slightly lower yesterday, but buyers were right there to pick up the pieces and the indices surged into the afternoon. They held onto those gains for most of the day and closed near the highs. The Dow gained 97-points while the TSP stock funds gained 0.6% to 0.9% on the day. Bonds were down 0.23%.
[TABLE="width: 88%, align: center"]
[TR]
[TD="width: 305"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 165"]
[TR]
[TD="align: right"] G-Fund:[/TD]
[TD="align: right"] +0.0063%[/TD]
[/TR]
[TR]
[TD="align: right"] F-fund:[/TD]
[TD="align: right"] -0.23%[/TD]
[/TR]
[TR]
[TD="align: right"] C-fund:[/TD]
[TD="align: right"] +0.84%[/TD]
[/TR]
[TR]
[TD="align: right"] S-fund:[/TD]
[TD="align: right"] +0.89%[/TD]
[/TR]
[TR]
[TD="align: right"] I-fund:[/TD]
[TD="align: right"] +0.57%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 69%, align: center"]
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The S&P 500 (SPY) rallied nicely and the action was good, but the open gap is now officially closed and the index is still in an area that may give it some trouble. Volume was pretty light; lighter than we saw the week before the holiday, which is kind of unusual. But we have a potential war on our hands, the jobs report will be out Friday, and on the 17th and 18th the Fed will let us know if / when they will slow down on their bond buying. That's a lot of question marks and investors may sit back and wait for answers.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq also officially filled its open gap yesterday. The difference here was that volume was good telling us that the big money was likely involved here. Being a leader, this 1% gain is a good sign for the rest of the market, but there's resistance right here that could cause problems.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
We've talked about September being a weak month for stocks historically, and this chart from www.chartoftheday.com shows us just how bad it is compared to the other months. With all of the infamous market crashes over the years, you'd think October would be the worst, but September is by far the worst performing month since 1950.
Chart provided courtesy of www.chartoftheday, analysis by TSP Talk
In today's TSP Talk Plus report we'll go over a few indicators, several index and bond charts, and discuss recent sentiment. 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 TSP Talk Market Commentary
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.
