Stocks were mixed yesterday as the Dow and S&P 500 saw minor losses, while the Nasdaq and small caps closed higher. The Dow lost 46-points on the day.
For the TSP, the C-fund fell 0.18% yesterday, the S-fund added 0.08%, the I-fund lost 0.56%, and the F-fund (bonds) gained 0.32%.
After the short-lived excitement a couple of weeks ago, the S&P 500 has been back in a slow grind up the ascending trading channel. You can see the key support areas we are watching - the middle support line, the 20-day EMA, the lower support line, the 2011 high (blue), and the 50-day EMA.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I was taking a look at the charts and I noticed the massive amount of gaps on the international stock ETF (exchange traded fund) called EFA. This makes sense since most of the trading in the international markets happen before the EFA opens for trading in the U.S. But what is quite noticeable is that nearly all of the gaps seem to get filled, just like any other chart.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The bad news for the EFA and the I-fund is that there are several gaps below left open since the start of this recent bull market rally. Something to think about if you play the I-fund.
Speaking of gaps, the yields on the 10-year treasury note has been able to hold above the 200-day EMA but there are a couple of open gaps above the 2.0% level, and one of them is quite glaring. I would be surprised if that one (between 2.1% and 2.2%) doesn't get filled in the coming days or weeks.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
If that happens it would mean a nice little relief rally for the F-fund, and I suspect, it would be at the expense of the stock market which is still due for a 5% or more pullback.
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
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.
For the TSP, the C-fund fell 0.18% yesterday, the S-fund added 0.08%, the I-fund lost 0.56%, and the F-fund (bonds) gained 0.32%.
After the short-lived excitement a couple of weeks ago, the S&P 500 has been back in a slow grind up the ascending trading channel. You can see the key support areas we are watching - the middle support line, the 20-day EMA, the lower support line, the 2011 high (blue), and the 50-day EMA.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I was taking a look at the charts and I noticed the massive amount of gaps on the international stock ETF (exchange traded fund) called EFA. This makes sense since most of the trading in the international markets happen before the EFA opens for trading in the U.S. But what is quite noticeable is that nearly all of the gaps seem to get filled, just like any other chart.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The bad news for the EFA and the I-fund is that there are several gaps below left open since the start of this recent bull market rally. Something to think about if you play the I-fund.
Speaking of gaps, the yields on the 10-year treasury note has been able to hold above the 200-day EMA but there are a couple of open gaps above the 2.0% level, and one of them is quite glaring. I would be surprised if that one (between 2.1% and 2.2%) doesn't get filled in the coming days or weeks.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
If that happens it would mean a nice little relief rally for the F-fund, and I suspect, it would be at the expense of the stock market which is still due for a 5% or more pullback.
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
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.
