Stocks opened modestly higher on Monday but it seemed a lack of sellers created a steady incline all day long. It felt a little like holiday trading, but it was even better than that. The Dow ended the day up 89-points and all of the TSP funds did well gaining about 0.7%.
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I don't usually take many days off from the website but a few times a year I will back off and make things quick so I can spend more time with the family. This week is one of those times. I appreciate your understanding and patience with these brief updates this week.
This week, particularly Wednesday and Friday, have a positive bias, but after Thanksgiving the historical averages reverse down into the early part of December. The question is whether folks still are underinvested after the pre-election "panic". If that's the case the dips will likely be bought quickly, but the indices are stretched, as are some of the indicators and it would not be unreasonable to expect some profit taking within the next week or so.
The SPY (S&P 500 / C-Fund) made new highs again and poked its head above the rising wedge formation. Wedges tend to break down so it will be interesting to see how strong this breakout is and how long it can hold. Momentum is on the bulls' side but whenever a chart moves into uncharted territory, nervous investors tend to be more inclined to lock in some gains and take profits. Will it happen during a holiday week or will it happen next week? I guess I should ask, will it happen at all, or will stocks rally into the end of the year.
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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