02/23/12
After a weak start yesterday, stock rebounded and held onto modest gains into the close. The Dow added 46-points, while small caps led the way with gain over 1%.
For the TSP, the C-fund was up 0.45% yesterday, the S-fund gained 1.11%, the I-fund added 0.37%, and the F-fund (bonds) was up 0.07%.
The S&P 500 is still hovering below the 2011 highs and within the rising trading channel. Nothing really new except the PMO indicator recently moved below its 10-day moving average, which would be a sell signal.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The #2 leader (behind the lagging Transportation index) Nasdaq, has remained near the recent highs and looks a little tired. The recent sideways action could be allowing it time to regain some strength before another push higher, but there are still some open gaps lingering below that always want to get filled.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Oil rallied again yesterday and the further it gets above $100, the more likely it will start to become a burden on consumer spending. The recent push above $104 (now over $108) was an inverted head and shoulders breakout, and as we talked about the other day, gives us a preliminary target near $130.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The TSP Talk Sentiment Survey came in at 48% bulls, 41% bears, for a bulls to bears ratio of 1.17 to 1. That is another buy signal in a bull market which means the system will remain 100% S Fund for next week.
Thanks for reading! Have a great weekend!
Tom Crowley
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.
