TSP's three amigos

This chart suggests that the I fund was the leader before the recession. Since 2009 the international fund started out strong, but the small caps (S fund) overtook and is the clear winner. Lately the I fund is slipping below the large caps (C fund). The C fund always underperforms, and IMO is due in part to institutions raiding it in a trading process I call skimming, but we will address that later.

 

[mayday]

What do you mean by skimming?

 

[Talan150]

Later?

 

[polarbear]

Very useful chart, Uptrend, thank you. Tony Caldaro is pointing out a bottom megaphone pattern today , see www.trending123/patterns/Megaphone-Bottom-Chart-Pattern.html as opposed to Top...

 

[polarbear]

FWIW, look at the chart of the dollar (USD) over the last four days:
INO.com Markets - Chart for U.S $ INDEX (NYBOTX) (you can always get here by Googling USDX + INO).

 

[Uptrend]

What do you mean by skimming?

Ok. Thanks for asking, and let me explain. Let's suppose that institutions like lower risk and stable stocks. So they choose large caps that have some growth potential and no current lawsuits or other negatives that could bring them down. The stock may be in relative equilibrium or slightly cycling. You know they have high frequency computer trading programs to assist trading. They will buy stock A on weakness and buy in small timed lots, to avoid affecting the price, on the first day. Then a few days later we see them selling the same stock on some uplifting news; and this may be for a small gain. Then they repeat. Meanwhile the ordinary investors, like you and me, have been putting funds in their 401(k), and their agent is investing a portion in large cap stocks. You should have been rewarded to a higher degree, but the trading desk bandits stole it. And they will tell you it's called trading.

 

[Uptrend]

Later?

Read the other reply. I will more fully cover this subject in the future, in another post. Thanks.

 

[Uptrend]

FWIW, look at the chart of the dollar (USD) over the last four days:
INO.com Markets - Chart for U.S $ INDEX (NYBOTX) (you can always get here by Googling USDX + INO).

Thanks. I have noticed for the past few days, and have a post on the USD lifting markets today.

 

[mayday]

Read the other reply. I will more fully cover this subject in the future, in another post. Thanks.

The basic premise to scimming is therefor day-trading?

 

[Uptrend]

The institutions are holding overnight or longer, so it is swing trading. However, the idea is that institutions are running a cycle of buying and selling in a few days time using millions of dollars and sometimes making just pennies per share. Like cream that rises to the top, they skim these profits with their computer robots. The base is provided by you and me, as we invest in our 401(k) plans, where some of the funds find their way into large cap, where there is perceived relative safety. Most trades are long trades, and the repeated systematic process is undermining the stocks real value. The ordinary investor may receive a variable but smaller return for buy and hold, compared to the institutions as they clean up. I suppose one could argue that a stock will gravitate towards an equilibrium price in line with earnings. However value that could have been stock splits and returned to the ordinary investor has been taken away.