04/17/13
The resilient market did what it has done all year - rebound from pullbacks. The Dow, which lost 266-points on Monday, gained back 158 yesterday.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[/TD]
[TD="align: center"]Daily TSP Funds Return[TABLE="width: 152"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]+0.0043%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.07%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]+1.43%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]+1.70%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]+1.34%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
After a sell-off like Monday's, some kind of "dead-cat bounce" is expected, but yesterday's rally saw some indices gain back over half of the losses. That's pretty real, and the rebound came off decent support levels in the case of the S&P 500 (SPY).
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The support looks pretty solid and the next couple of days will be very important, because if the support breaks, there is a lot of room below for a correction. However, if the support holds, we know how bearish investors have been and that usually adds up to a lot of cash on the sidelines to fuel a rally.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps' rebound was 1.7% yesterday, which is a very nice gain, but that is following Monday's 3.8% loss so again, the next couple of days will be important. The IWM, which is the Russell 2000 ETF, is now trying to regain the 50-day EMA.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation index, which lost 3.9% on Monday, gained back a solid 2.4% and the support held on the ETF. It recaptured the 50-day EMA and now seems to be in the middle of a pennant formation.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
My analysis is basically a 'wait and see' approach. As I have been saying, sentiment is very bearish and that tends to keep pullbacks shallow and short. But I am remaining cautious, just because I have been leaning on the bearish side waiting for a better buying opportunity since we are closer to the top of the trading ranges than the bottom.
Intel posted a very mediocre earnings report after the bell yesterday that didn't have much impact on the stock in after hours trading. Intel is one stock that can move the market but so far it doesn't look like it will have much of an effect on today's trading. The big name company earnings will continue to roll in for a couple more weeks.
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.
The resilient market did what it has done all year - rebound from pullbacks. The Dow, which lost 266-points on Monday, gained back 158 yesterday.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[TD="align: center"]Daily TSP Funds Return[TABLE="width: 152"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]+0.0043%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.07%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]+1.43%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]+1.70%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]+1.34%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
After a sell-off like Monday's, some kind of "dead-cat bounce" is expected, but yesterday's rally saw some indices gain back over half of the losses. That's pretty real, and the rebound came off decent support levels in the case of the S&P 500 (SPY).
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The support looks pretty solid and the next couple of days will be very important, because if the support breaks, there is a lot of room below for a correction. However, if the support holds, we know how bearish investors have been and that usually adds up to a lot of cash on the sidelines to fuel a rally.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps' rebound was 1.7% yesterday, which is a very nice gain, but that is following Monday's 3.8% loss so again, the next couple of days will be important. The IWM, which is the Russell 2000 ETF, is now trying to regain the 50-day EMA.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation index, which lost 3.9% on Monday, gained back a solid 2.4% and the support held on the ETF. It recaptured the 50-day EMA and now seems to be in the middle of a pennant formation.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
My analysis is basically a 'wait and see' approach. As I have been saying, sentiment is very bearish and that tends to keep pullbacks shallow and short. But I am remaining cautious, just because I have been leaning on the bearish side waiting for a better buying opportunity since we are closer to the top of the trading ranges than the bottom.
Intel posted a very mediocre earnings report after the bell yesterday that didn't have much impact on the stock in after hours trading. Intel is one stock that can move the market but so far it doesn't look like it will have much of an effect on today's trading. The big name company earnings will continue to roll in for a couple more weeks.
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.
