Stocks were mostly higher on Monday, although small caps came out of the gate struggling to start the week. The Dow gained 103-points, or 0.32%, while the S&P 500 gained 0.70%, and the Nasdaq led again with a strong gain of over 1%. Small caps lagged with small oil and regional bank stocks down yesterday.
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It was a solid day for stocks yesterday and some of the TSP funds. The S-fund struggled as we saw the oil and financial sectors lag badly yesterday, and with the Russell 2000 and the DWCPF Index, which basically our S-fund, filled with a lot of small to midsized oil and bank stocks, it lagged the the large cps of the S&P 500.
Yields were down on the day giving growth stocks a chance to bounce back, and that's why the Nasdaq and the large tech stocks had such a good day.
Can it all flip flop on us today? Sure, and that's why keeping an eye on those yields is key. If it looks like this chart is toppy, stocks may stabilize again and go for new highs. However if we see this chart push to new highs again, I'd expect to see more struggling in the indices, particularly those that have those high tech names in them.
March Madness contest links: More Info. Yahoo! Tourney Pick'em.
The S&P 500 (C-fund) seems to have resumed the upside move after that pullback and Friday reversal. The rising trading channel is intact after a breakdown in both January and February. It should be a quieter week this week after last week's expiration week, although there could still be some rebalancing with the end of the month coming up, and that could cause some interesting rotational issues with money managers moving assets from stock to bond funds, as we talked about on Monday.
The DWCPF (small caps / S-fund) is trying to create an inverted head and shoulders pattern here so in the short-term we might expect a move back up toward the top of the right shoulder. From there - a possible breakout but those H&S patterns have a couple of ways they can act.
The EFA (I_Fund) was up slightly and the dollar was down so I'm not sure why the I-fund was flat. I suppose today will be and adjustment day.
BND (bonds / F-fund) had a nice bounce yesterday with those yields slipping lower. Still very oversold, this fund is due for some relief. ("how many times is this guy going to say that?")
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. 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.
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It was a solid day for stocks yesterday and some of the TSP funds. The S-fund struggled as we saw the oil and financial sectors lag badly yesterday, and with the Russell 2000 and the DWCPF Index, which basically our S-fund, filled with a lot of small to midsized oil and bank stocks, it lagged the the large cps of the S&P 500.
Yields were down on the day giving growth stocks a chance to bounce back, and that's why the Nasdaq and the large tech stocks had such a good day.
Can it all flip flop on us today? Sure, and that's why keeping an eye on those yields is key. If it looks like this chart is toppy, stocks may stabilize again and go for new highs. However if we see this chart push to new highs again, I'd expect to see more struggling in the indices, particularly those that have those high tech names in them.
March Madness contest links: More Info. Yahoo! Tourney Pick'em.
The S&P 500 (C-fund) seems to have resumed the upside move after that pullback and Friday reversal. The rising trading channel is intact after a breakdown in both January and February. It should be a quieter week this week after last week's expiration week, although there could still be some rebalancing with the end of the month coming up, and that could cause some interesting rotational issues with money managers moving assets from stock to bond funds, as we talked about on Monday.
The DWCPF (small caps / S-fund) is trying to create an inverted head and shoulders pattern here so in the short-term we might expect a move back up toward the top of the right shoulder. From there - a possible breakout but those H&S patterns have a couple of ways they can act.
The EFA (I_Fund) was up slightly and the dollar was down so I'm not sure why the I-fund was flat. I suppose today will be and adjustment day.
BND (bonds / F-fund) had a nice bounce yesterday with those yields slipping lower. Still very oversold, this fund is due for some relief. ("how many times is this guy going to say that?")
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. 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.
