The Kingdom of TSP
Hold em -- Fold em
May 15, 2006
Are things going to the dogs or not?
The economy (fundamentals) are still in place for good market conditions, however they have been bruised by the continued high interest rates imposed by the Fed. Also the rise in energy prices and the seasonal sentiment that the summer monthe are not the best months for the market.
Indicators, both short term and long term show the market is advancing [$SPX] when viewing the 40-50 day moving averages. The short term conditions show a very volatile market and can be a bit scary when the large red candle sticks pass below the 50 day moving average, as they have the past few trading days.
But, indicators for the long term, i.e., weekly charts tend to smooth out the conditions and show a bigger picture. The [$SPX] is remaining above the 40 day moving average.
So, how are we doing. As a bench mark I would use the L-Income fund, because it uses the theme of capital preservation. The Tracker had it's current return at 2.73%. Above-great. Below-take a look at your strategy.
Regards, and be careful!................

.................Spaf