1/03/12
That's one way to start a new year. The Dow gained 308-points as investors jumped all over the fiscal cliff deal.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[/TD]
[TD="align: center"]Daily TSP Funds Return
[TABLE="width: 134"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]0.0078%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.12%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]2.56%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]2.63%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]1.88%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns[/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
In this last weekend's Weekly Wrap-Up I said:
"Monday will be the last day that buy and hold investors can sell and pay the lower long-term capital gains rate. If we weren't also dealing with the fiscal cliff, I would think this could trigger a strong rally in stocks as the capital gains sellers could be using their new cash to buy new positions in January. If a fiscal cliff deal is made we could have a perfect storm for a bull market rally."
I guess even a broken clock is right twice a day, but we had the 1986 / 1987 chart to thank for that heads up. I think we can say that is what happened on Wednesday, but instead of 6 or 7 consecutive 40-50-point rallies, we got it all in one big relief day. As I talked about yesterday, those who missed out may be the ammunition (buyers) needed to keep from seeing any major pullbacks in the short-term.
The S&P looks good but the new trading channel has a lot of room for downward or sideways movement. The trend is up, which means resistance is also rising so more upside is not out of the question either.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq rallied over 3% yesterday, and while momentum could stay on the side of the bulls for a few days, the large gaps we see on several charts could be the eventual target for any pullbacks.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I have to cut this short today. I am trying to prepare our AutoTracker database for 2013 and for some reason my direct access to the database is not working. Very bad timing. Not to worry AutoTracker members. We'll get it going, but I have to get working on it.
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.
That's one way to start a new year. The Dow gained 308-points as investors jumped all over the fiscal cliff deal.
[TABLE="width: 88%, align: center"]
[TR]
[TD]
[TD="align: center"]Daily TSP Funds Return
[TABLE="width: 134"]
[TR]
[TD]G-Fund:[/TD]
[TD="align: right"]0.0078%[/TD]
[/TR]
[TR]
[TD]F-fund:[/TD]
[TD="align: right"]-0.12%[/TD]
[/TR]
[TR]
[TD]C-fund:[/TD]
[TD="align: right"]2.56%[/TD]
[/TR]
[TR]
[TD]S-fund:[/TD]
[TD="align: right"]2.63%[/TD]
[/TR]
[TR]
[TD]I-fund:[/TD]
[TD="align: right"]1.88%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 80%, align: center"]
[TR]
[TD="align: right"]More returns[/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
In this last weekend's Weekly Wrap-Up I said:
"Monday will be the last day that buy and hold investors can sell and pay the lower long-term capital gains rate. If we weren't also dealing with the fiscal cliff, I would think this could trigger a strong rally in stocks as the capital gains sellers could be using their new cash to buy new positions in January. If a fiscal cliff deal is made we could have a perfect storm for a bull market rally."
I guess even a broken clock is right twice a day, but we had the 1986 / 1987 chart to thank for that heads up. I think we can say that is what happened on Wednesday, but instead of 6 or 7 consecutive 40-50-point rallies, we got it all in one big relief day. As I talked about yesterday, those who missed out may be the ammunition (buyers) needed to keep from seeing any major pullbacks in the short-term.
The S&P looks good but the new trading channel has a lot of room for downward or sideways movement. The trend is up, which means resistance is also rising so more upside is not out of the question either.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq rallied over 3% yesterday, and while momentum could stay on the side of the bulls for a few days, the large gaps we see on several charts could be the eventual target for any pullbacks.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I have to cut this short today. I am trying to prepare our AutoTracker database for 2013 and for some reason my direct access to the database is not working. Very bad timing. Not to worry AutoTracker members. We'll get it going, but I have to get working on it.
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.
