Stocks were mostly higher after another drop in the jobless claims before the bell. The Dow gained 142-points while the S&P 00 added 5. The Nasdaq slipped into negative territory late but small caps shined again with a strong gain. Bonds and the dollar were down, as yields rallied.
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Trading volume was very high yesterday, ironically during a pre-holiday weekend, but that was mostly because AMC Entertainment traded nearly 700 million shares on its own. That's astonishing considering they only have 450 million shares outstanding. By comparison, Apple, one of the more heavily traded stocks in the U.S., traded 95 million shares yesterday, and they have 325 million shares outstanding. Oh, and AMC was up 35% yesterday.
It's been that kind of a market in 2021 where restless investors are looking for the next hot trade, and with bitcoin still down more than 40% of its highs, they've moved onto a small company like AMC. There's a lot of day trading going on. I'm not against that by any means. Liquidity is great for markets. But I'm sure it is having some impact on the stock market.
Anyway, it was a typical pre-holiday kind of day where the bulls had an advantage. We just didn't get typical pre-holiday trading volume.
The internals were very solid.
Small caps took off again, but the chart is showing that the next test there is almost upon it as it looks like another head and shoulder s pattern. and the right shoulder could be peaking.
After the bell we saw more buying in the futures market after some positive earnings out of Salesforce.
Things could get more exciting after the weekend where historically the start of June has a good record, but overall the month has had some problems.
From www.tsp.gov: Holiday Closing
Some financial markets will be closed on Monday, May 31 in observance of the Memorial Day holiday. The Thrift Savings Plan will also be closed. Transactions that would have been processed Monday night (May 31) will be processed Tuesday night (June 1), at Tuesday's closing share prices.
The S&P 500 (C-fund) was up on Friday but it faded late and closed with a 4200 handle as it continues to struggle to get to, and stay above, that level. The action has been good but it has slowed down a bit since the big push off the 50-day EMA recently. You can see the trading volume spike yesterday, with much of that caused by AMC.
The DWCPF (S-fund) had back to back big rallies but it finds itself up against some resistance and at the apex of what might be considered a rising wedge pattern, which tend to be bearish. There hasn't been a lot of bearish activity since the lows in May, however the small caps have remained quite volatile.
The EFA / I-fund was up modestly but it actually ended the day at its highest closing level ever. The chart starts in the lower left and ends in the upper right so it is certainly bullish but it does have a lot of room below if it is going to continue to roll within that rising trading channel between the 50-day EMA and the red resistance line.
BND (bonds / F-fund) pulled back after its recent rally. It's back above the 50-day EMA - for some reason - but with the economy continuing to show improvement, you would think yields would be creeping up, not down, and bond prices would be falling. Not recently.
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
To get weekly or daily notifications when we post new commentary, sign up HERE.
Thanks for reading. Have a great holiday, and during this Memorial day weekend, please try to remember those who sacrificed everything for our freedom .
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.
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Trading volume was very high yesterday, ironically during a pre-holiday weekend, but that was mostly because AMC Entertainment traded nearly 700 million shares on its own. That's astonishing considering they only have 450 million shares outstanding. By comparison, Apple, one of the more heavily traded stocks in the U.S., traded 95 million shares yesterday, and they have 325 million shares outstanding. Oh, and AMC was up 35% yesterday.
It's been that kind of a market in 2021 where restless investors are looking for the next hot trade, and with bitcoin still down more than 40% of its highs, they've moved onto a small company like AMC. There's a lot of day trading going on. I'm not against that by any means. Liquidity is great for markets. But I'm sure it is having some impact on the stock market.
Anyway, it was a typical pre-holiday kind of day where the bulls had an advantage. We just didn't get typical pre-holiday trading volume.
The internals were very solid.
Small caps took off again, but the chart is showing that the next test there is almost upon it as it looks like another head and shoulder s pattern. and the right shoulder could be peaking.
After the bell we saw more buying in the futures market after some positive earnings out of Salesforce.
Things could get more exciting after the weekend where historically the start of June has a good record, but overall the month has had some problems.
From www.tsp.gov: Holiday Closing
Some financial markets will be closed on Monday, May 31 in observance of the Memorial Day holiday. The Thrift Savings Plan will also be closed. Transactions that would have been processed Monday night (May 31) will be processed Tuesday night (June 1), at Tuesday's closing share prices.
The S&P 500 (C-fund) was up on Friday but it faded late and closed with a 4200 handle as it continues to struggle to get to, and stay above, that level. The action has been good but it has slowed down a bit since the big push off the 50-day EMA recently. You can see the trading volume spike yesterday, with much of that caused by AMC.
The DWCPF (S-fund) had back to back big rallies but it finds itself up against some resistance and at the apex of what might be considered a rising wedge pattern, which tend to be bearish. There hasn't been a lot of bearish activity since the lows in May, however the small caps have remained quite volatile.
The EFA / I-fund was up modestly but it actually ended the day at its highest closing level ever. The chart starts in the lower left and ends in the upper right so it is certainly bullish but it does have a lot of room below if it is going to continue to roll within that rising trading channel between the 50-day EMA and the red resistance line.
BND (bonds / F-fund) pulled back after its recent rally. It's back above the 50-day EMA - for some reason - but with the economy continuing to show improvement, you would think yields would be creeping up, not down, and bond prices would be falling. Not recently.
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
To get weekly or daily notifications when we post new commentary, sign up HERE.
Thanks for reading. Have a great holiday, and during this Memorial day weekend, please try to remember those who sacrificed everything for our freedom .
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.
