Stocks were mixed on Monday with large tech leading the way to help the Nasdaq to a strong day, but the Dow and small caps were down, and the S&P 500 was flat. Oil was down 4%, bonds continued their losing streak, but MAGA saved the day.
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Big tech MAGA names - Microsoft, Apple, Google and Amazon were all up big on the day while the rest of the market actually saw a disturbingly lopsided day to the downside with two stocks down for every one up on the NYSE Index. Even the Nasdaq saw more losers than winners despite the impressive gains.
As I mentioned yesterday today's commentary will have to be brief. I'll leave Monday's more in depth commentary below today's charts in case you missed it.
The S&P 500 (C-fund) crept back up to the 200-day EMA and stalled again. As I pointed out yesterday (see below) often this moving average will be broken, but it will be more of a last gasp rally in a bear market. I don't know for sure if that's where we are, but it feels very similar.
It may not be overly apparent, but the Equal Weighted S&P 500 chart shows a bit more fatigue as those MAGA and FAANG types of stocks are not any more important in this index than the actual S&P 500 Index where they get more weighted and can actually greatly diverge. Notice the Equal Weighted Index was down 1.2% yesterday. Same stocks as above. Different Weights.
Internal weakness?
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Monday's Commentary
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.
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[TR]
[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[TD][/TD]
[TD="align: center"]
[/TR]
[/TABLE]
Big tech MAGA names - Microsoft, Apple, Google and Amazon were all up big on the day while the rest of the market actually saw a disturbingly lopsided day to the downside with two stocks down for every one up on the NYSE Index. Even the Nasdaq saw more losers than winners despite the impressive gains.
As I mentioned yesterday today's commentary will have to be brief. I'll leave Monday's more in depth commentary below today's charts in case you missed it.
The S&P 500 (C-fund) crept back up to the 200-day EMA and stalled again. As I pointed out yesterday (see below) often this moving average will be broken, but it will be more of a last gasp rally in a bear market. I don't know for sure if that's where we are, but it feels very similar.
It may not be overly apparent, but the Equal Weighted S&P 500 chart shows a bit more fatigue as those MAGA and FAANG types of stocks are not any more important in this index than the actual S&P 500 Index where they get more weighted and can actually greatly diverge. Notice the Equal Weighted Index was down 1.2% yesterday. Same stocks as above. Different Weights.
Internal weakness?
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Monday's Commentary
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.
