Stocks remain buoyant
Stocks continued to climb higher despite what seems to be a gloomy economic picture. Investors seem optimistic as we get closer to the elections and knowing the Federal Reserve’s intentions for QE 2.
For the week, the TSP stock funds all closed higher. The C-fund was up 0.96%, the S-fund gained 1.35%, and the I-fund added 1.30%. Bonds (F-fund) were down 0.55% and the G-fund picked up 0.04%.
All of the funds remain in positive territory for the month of October, with the I-fund leading the way with a gain of 4.54%.
After a two week consolidation period in late September, the S&P 500 has resumed a steady move higher in October. Why stocks are still moving higher doesn’t really matter to me, and while I believe we will see the market break down at some point, right now it is going up and since the stock indices tend to be leading indicators, something good is apparently brewing. My theory is it is the upcoming elections and quantitative easing. After the election and after the likely implementation of QE 2 we could see a sell the news reaction. Until then, this is what is happening…
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
As our member Bullitt pointed out recently, we are seeing some divergences in the banking and financial sectors, as they have not enjoyed the same success as the rest of the market over the last several weeks, and this may be telling us something.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
But one of the main market leaders, the large capitalization tech stocks of the Nasdaq 100, is confirming the move higher. The recent strength in this index not only made a new 52-week high last week, but it also hit levels not seen since late 2007. Should the S&P follow this leader, the short-term future looks good.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This run won’t last forever, but until we get a break of the uptrend - why fight it? It is possible this rally could last until at least early November when we have Election Day and the next scheduled FOMC meeting, where we should know more about the Fed’s intentions for quantitative easing.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Stocks continued to climb higher despite what seems to be a gloomy economic picture. Investors seem optimistic as we get closer to the elections and knowing the Federal Reserve’s intentions for QE 2.
For the week, the TSP stock funds all closed higher. The C-fund was up 0.96%, the S-fund gained 1.35%, and the I-fund added 1.30%. Bonds (F-fund) were down 0.55% and the G-fund picked up 0.04%.
All of the funds remain in positive territory for the month of October, with the I-fund leading the way with a gain of 4.54%.
After a two week consolidation period in late September, the S&P 500 has resumed a steady move higher in October. Why stocks are still moving higher doesn’t really matter to me, and while I believe we will see the market break down at some point, right now it is going up and since the stock indices tend to be leading indicators, something good is apparently brewing. My theory is it is the upcoming elections and quantitative easing. After the election and after the likely implementation of QE 2 we could see a sell the news reaction. Until then, this is what is happening…
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
As our member Bullitt pointed out recently, we are seeing some divergences in the banking and financial sectors, as they have not enjoyed the same success as the rest of the market over the last several weeks, and this may be telling us something.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
But one of the main market leaders, the large capitalization tech stocks of the Nasdaq 100, is confirming the move higher. The recent strength in this index not only made a new 52-week high last week, but it also hit levels not seen since late 2007. Should the S&P follow this leader, the short-term future looks good.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This run won’t last forever, but until we get a break of the uptrend - why fight it? It is possible this rally could last until at least early November when we have Election Day and the next scheduled FOMC meeting, where we should know more about the Fed’s intentions for quantitative easing.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
