05/29/13
After last week's pre-holiday pullback, stocks resumed their bullish ways by opening up sharply higher in Tuesday's post-holiday trading. Stocks finished well off of their highs but the Dow, up about 220-points at one point, still managed a new closing high after finishing the day up 106-points.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[/TD]
[TD="align: center"]Daily TSP Funds Return[TABLE="width: 156"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]+0.0156%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.51%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]+0.63%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]+0.94%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]-0.06%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
S&P 500 was up 25-points in early trading and managed to hold onto a respectable 10-point gain, but that is dangerously close to being a negative reversal day. The index is back above one key level of resistance, while remaining just below another.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
While the S&P 500 barely avoided a negative reversal day, we saw the Dow Transportation Index give up almost all of its 86-point early morning gain and finished the day +2-points or +0.0%. That is a negative reversal day for the market leader so a bit of a warning sign here for the broader market indices.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
One of the key reasons for the big rally on Tuesday was a very strong housing report, but like the other indices, the Housing Index could not hold onto its early gains. Here's another negative reversal day, and like the Transports, it is looking for the 20-day EMA to hold as support.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bond yields continue to rise as they have been taking their queue from the dollar. As the dollar rises, so are bond yields.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Of course rising bond yields mean trouble for bond prices and the F-fund. The 7-10 year Treasury Bond fund lost 1.2% on the day and the F-fund gave up 0.51%, which a big move for bonds in one day.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The indicators continue to show a mixed bag so I am focusing on the charts right now. Yesterday's gains did make a slight improvement in the chart of the S&P but the weak close and the negative reversals in the other indices give me some concern.
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.
After last week's pre-holiday pullback, stocks resumed their bullish ways by opening up sharply higher in Tuesday's post-holiday trading. Stocks finished well off of their highs but the Dow, up about 220-points at one point, still managed a new closing high after finishing the day up 106-points.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[TD="align: center"]Daily TSP Funds Return[TABLE="width: 156"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]+0.0156%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.51%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]+0.63%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]+0.94%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]-0.06%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
S&P 500 was up 25-points in early trading and managed to hold onto a respectable 10-point gain, but that is dangerously close to being a negative reversal day. The index is back above one key level of resistance, while remaining just below another.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
While the S&P 500 barely avoided a negative reversal day, we saw the Dow Transportation Index give up almost all of its 86-point early morning gain and finished the day +2-points or +0.0%. That is a negative reversal day for the market leader so a bit of a warning sign here for the broader market indices.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
One of the key reasons for the big rally on Tuesday was a very strong housing report, but like the other indices, the Housing Index could not hold onto its early gains. Here's another negative reversal day, and like the Transports, it is looking for the 20-day EMA to hold as support.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bond yields continue to rise as they have been taking their queue from the dollar. As the dollar rises, so are bond yields.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Of course rising bond yields mean trouble for bond prices and the F-fund. The 7-10 year Treasury Bond fund lost 1.2% on the day and the F-fund gave up 0.51%, which a big move for bonds in one day.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The indicators continue to show a mixed bag so I am focusing on the charts right now. Yesterday's gains did make a slight improvement in the chart of the S&P but the weak close and the negative reversals in the other indices give me some concern.
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.
