Stocks continued their rebound yesterday as the Dow posted another triple digit gain, pushing the indices into the green for the week, and back into the green for the year. In the case of the C and I-funds, just barely positive, but after two major sell-offs this January, the bulls have to be happy to be seeing positive returns.
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[TD="align: center"]Daily TSP Funds Return
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The gains were modest with all three TSP stock funds adding about a half of one percent, while bonds slipped back a little.
S&P 500 (SPY) pushed to a new high yesterday after consolidating since the prior breakout just before Christmas. The action looks very similar to prior breakouts in 2013, so 2014 is really behaving a lot like last year. If that goes on for any length of time we'd obviously be looking at some healthy annual gains, but is that possible after the 30% plus gains last year? I guess it is, but there has to be a correction in there somewhere. The market doesn't go straight up without correcting once in a while, particularly with an economy that isn't showing much strength, although it has been improving slightly.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq made a bold move higher to a new 52-week high, gapping up at the open so we should a least see a short-term pullback to fill that gap.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The 2-day rally now has the short-term indicators pointing upward, and with them being just barely above neutral territory, there is some room to move higher - barring any kind of negative news.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The dollar gapped higher yesterday creating yet another open gap on the UUP, while closing a smaller gap (blue). So it has recovered from the recent lows after the jobs report without filling that large open gap near 21.55. The reason this is important to us is because of the influence the dollar has on the I-fund.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds were down yesterday but closed higher than they opened so there was a little buying of the dips despite the losses. The two open gaps are still targets for any pullback, but the downtrends were broken so we'll have to see if that means they are starting a new uptrend.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Today we get the normal Thursday initial jobless claims report, and the CPI. Either or both could be market movers.
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its System. 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.
[TABLE="width: 79%, align: center"]
[TR]
[TD]
[TD="align: center"]Daily TSP Funds Return
[TR]
[TD="align: right"]More returns [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The gains were modest with all three TSP stock funds adding about a half of one percent, while bonds slipped back a little.
S&P 500 (SPY) pushed to a new high yesterday after consolidating since the prior breakout just before Christmas. The action looks very similar to prior breakouts in 2013, so 2014 is really behaving a lot like last year. If that goes on for any length of time we'd obviously be looking at some healthy annual gains, but is that possible after the 30% plus gains last year? I guess it is, but there has to be a correction in there somewhere. The market doesn't go straight up without correcting once in a while, particularly with an economy that isn't showing much strength, although it has been improving slightly.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq made a bold move higher to a new 52-week high, gapping up at the open so we should a least see a short-term pullback to fill that gap.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The 2-day rally now has the short-term indicators pointing upward, and with them being just barely above neutral territory, there is some room to move higher - barring any kind of negative news.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The dollar gapped higher yesterday creating yet another open gap on the UUP, while closing a smaller gap (blue). So it has recovered from the recent lows after the jobs report without filling that large open gap near 21.55. The reason this is important to us is because of the influence the dollar has on the I-fund.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds were down yesterday but closed higher than they opened so there was a little buying of the dips despite the losses. The two open gaps are still targets for any pullback, but the downtrends were broken so we'll have to see if that means they are starting a new uptrend.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Today we get the normal Thursday initial jobless claims report, and the CPI. Either or both could be market movers.
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its System. 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.
