Stocks rolled over and gave back some large early gains to end the day mixed. The Dow ended the day up 39-points but the S&P 500 and Nasdaq both closed slightly red. Small caps held onto some decent gains, even after closing 1.5% off the highs. Bonds had a nice day as the 10-year yield slipped to 0.61%.
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As I mentioned yesterday, I was on the road Thursday and will be busy most of Friday so I'm making this a quick one. Premium subscribers may still get alerts as I will stay available at least until the TSP transaction deadline. Thanks for understanding.
The market was all about breaking through some key resistance on Thursday morning, but as we know, the close is key. That's what makes it additionally tough for us to make decisions since we have to have our trades in four hours before that deadline, and obviously there was a big difference between noon ET, and the close at 4 PM.
Clearly there's a big disconnect between the stock market and the economy. The question is, which is going to catch up to the other? We saw another 4+ million initial jobless claims reported Thursday, so that number is nearing 30 million total, meanwhile the S&P 500 is nearly 30% above the March lows.
The negative reversal yesterday does not usually bode well for the following day, but some investors seem to be buying every dip believing the Fed and the government have their backs. That's a pretty good argument since the investment incentives may be as good as we've ever seen. Now, if we can get businesses up and running again, we could have the perfect storm for the stock market. Until then, the bears "may" have the upper hand, because of the resistance and bear flags that we see on many of the charts.
The S&P 500 (C-fund) ran up above the 50-day EMA, filled that small gap from Tuesday's decline, but some late selling took it back down below that average and it faces a negative reversal pattern to start Friday. The bear flags / rising wedges tend to be bearish and break to the downside, but so far the bulls have done a good job of holding it up.
Sorry for the hit and run report today. It takes a lot to get me to go stir crazy, but I was pretty much there, and this golfing weekend with some family was a must.
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
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
Thanks for reading. Have a great weekend!
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.
[TABLE="align: center"]
[TR]
[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"][/TD]
[/TR]
[/TABLE]
[/TD]
[TD]
[/TD]
[TD="align: center"]
[/TR]
[/TABLE]
As I mentioned yesterday, I was on the road Thursday and will be busy most of Friday so I'm making this a quick one. Premium subscribers may still get alerts as I will stay available at least until the TSP transaction deadline. Thanks for understanding.
The market was all about breaking through some key resistance on Thursday morning, but as we know, the close is key. That's what makes it additionally tough for us to make decisions since we have to have our trades in four hours before that deadline, and obviously there was a big difference between noon ET, and the close at 4 PM.
Clearly there's a big disconnect between the stock market and the economy. The question is, which is going to catch up to the other? We saw another 4+ million initial jobless claims reported Thursday, so that number is nearing 30 million total, meanwhile the S&P 500 is nearly 30% above the March lows.
The negative reversal yesterday does not usually bode well for the following day, but some investors seem to be buying every dip believing the Fed and the government have their backs. That's a pretty good argument since the investment incentives may be as good as we've ever seen. Now, if we can get businesses up and running again, we could have the perfect storm for the stock market. Until then, the bears "may" have the upper hand, because of the resistance and bear flags that we see on many of the charts.
The S&P 500 (C-fund) ran up above the 50-day EMA, filled that small gap from Tuesday's decline, but some late selling took it back down below that average and it faces a negative reversal pattern to start Friday. The bear flags / rising wedges tend to be bearish and break to the downside, but so far the bulls have done a good job of holding it up.
Sorry for the hit and run report today. It takes a lot to get me to go stir crazy, but I was pretty much there, and this golfing weekend with some family was a must.
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
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
Thanks for reading. Have a great weekend!
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.
