Once again it was a mixed day on Wall Street. This time it was the Dow that was down big, and the Nasdaq led on the upside with a small gain, but it battled back from a near 1% loss near the open. The S&P 500 and small caps finished down but just modestly, while the I-fund was down after a day that the dollar rebounded from an early sell-off.
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There was more political wrangling yesterday that may have been a catalyst but it seemed to have more to do with trade talk out of China that had the biggest impact as the large caps were hit the hardest. That doesn't explain the under-performance in the small caps yesterday, but perhaps the upcoming rate hike does.
The FOMC meeting starts today and we should get the policy statement tomorrow afternoon, so the trading may be quiet. On the other hand, there may be some re-positioning heading into the meeting so perhaps it could be more mixed results while the investors speculate on which sectors may benefit or be hurt by any interest rate surprises.
The S&P 500 / C-fund moved down early on Monday, filled the open gap near 2912, then bounced back some to close off the lows, but still lost 0.35%. Whether this is the start of another dip that will test the bottom of the rising trading channel, I don't know, but why not? The action has been fairly orderly lately within that rising channel.
The small caps (S-fund) lagged a bit, falling below its 20-day EMA, but it too bounced off the worst level of the day so the dip buyers are still lurking.
The Nasdaq pushed sharply lower at the open, hit the bottom of the bear flag that we have been watching, and rebounded strongly. It closed about 80-points off its lows. It just feels like investors are in no mood to sell in that when one index goes down, another moves up. In yesterday's case large caps in the Dow were sold while the Nasdaq stocks were getting bought up.
The Dow Transportation Index may have been the most wounded index yesterday as it fell below its trading channel and below a rising wedge formation.
The EAFE Index (I-fund) was down on Monday as the dollar was flat, but it rallied back from a big early loss.
The AGG (bonds) was down again and this chart remains in a narrow descending channel, and also in a longer-term downtrend after breaking down earlier in the month.
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.
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[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"][/TD]
[/TR]
[/TABLE]
[/TD]
[TD]
[/TD]
[TD="align: center"]
[/TR]
[/TABLE]
There was more political wrangling yesterday that may have been a catalyst but it seemed to have more to do with trade talk out of China that had the biggest impact as the large caps were hit the hardest. That doesn't explain the under-performance in the small caps yesterday, but perhaps the upcoming rate hike does.
The FOMC meeting starts today and we should get the policy statement tomorrow afternoon, so the trading may be quiet. On the other hand, there may be some re-positioning heading into the meeting so perhaps it could be more mixed results while the investors speculate on which sectors may benefit or be hurt by any interest rate surprises.
The S&P 500 / C-fund moved down early on Monday, filled the open gap near 2912, then bounced back some to close off the lows, but still lost 0.35%. Whether this is the start of another dip that will test the bottom of the rising trading channel, I don't know, but why not? The action has been fairly orderly lately within that rising channel.
The small caps (S-fund) lagged a bit, falling below its 20-day EMA, but it too bounced off the worst level of the day so the dip buyers are still lurking.
The Nasdaq pushed sharply lower at the open, hit the bottom of the bear flag that we have been watching, and rebounded strongly. It closed about 80-points off its lows. It just feels like investors are in no mood to sell in that when one index goes down, another moves up. In yesterday's case large caps in the Dow were sold while the Nasdaq stocks were getting bought up.
The Dow Transportation Index may have been the most wounded index yesterday as it fell below its trading channel and below a rising wedge formation.
The EAFE Index (I-fund) was down on Monday as the dollar was flat, but it rallied back from a big early loss.
The AGG (bonds) was down again and this chart remains in a narrow descending channel, and also in a longer-term downtrend after breaking down earlier in the month.
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.
