Stocks opened higher on Monday and sustained the gains throughout the trading day closing near the highs. The Dow gained 242-points and the broader indices saw similar advances of about 1.3% or more.
[TABLE="align: center"]
[TR]
[TD="align: center"]
[TD="align: center"][/TD]
[TD="align: center"] Daily TSP Funds Return
[TABLE="align: center"]
[TR]
[TD="align: right"]
[/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The I-fund lagged, for some reason. Not only were the overseas markets higher, but the dollar lost about a half of a percent so I'd expect a positive adjustment with today's price. Bonds were down as investors clearly opted for stocks.
The SPY (S&P 500 / C-fund) gained 1.3% gapping up and taking back the 20 and 50-day EMAs. The strong close is a good sign and sellers stepped aside and let the bulls take control, but you know the bears are eyeballing that big open gap down by 208.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (S-fund) kept up with the large caps for a change, but you can see that it stills has some work to do before breaking above the descending resistance line.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index is repeating July's action, and if that can continue, it could mean the 200-day EMA will be taken out on the next attempt.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE index / I-fund) gained 1.3% yesterday breaking above a triple dose of resistance in the descending resistance line, the 50-day EMA, and the old support line which was broken last week.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The dollar was down as it continues to bounce in between the horizontal resistance line and the rising support line. This should have helped the I-fund on Monday but it appears we may not see that gain until today.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) was down as investors were looking for some risk on Monday. It is still trending upward and it's above the 20 and 50-day EMA, but if stocks can resume the rally this week, bonds would likely break down again.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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.
