Today's Comments (Short Term Outlook)                             Printer friendly

Slowing More evidence of a slowing economy sent stocks back yesterday.  The Dow suffered a triple digit loss after a GDP report of 0.6%, which was lower than expectations, and economic commentary from Ben Bernanke and President Bush. The S&P 500 did turn down after facing the 50-day moving average earlier this week.  That is typical bear market action, but the bulls did not completely give up.  We seem to be drifting sideways more than anything - not too bad, not too good.                                   Chart provided courtesy of www.decisionpoint.com Bonds (F-fund) rallied strongly off of the weak economic data.  It was right on queue as the AGG had been testing the lower end of the ascending trading channel.  With it trading above the 20, 50 and 200-day moving averages, and in that order, bonds look pretty good from a technical standpoint.  I know there are some fundamental reasons why bonds may not seem like the best play, but right now the technicals are calling the shot so I am favoring the F-fund over the G-fund as a safe haven.                                    Chart provided courtesy of www.decisionpoint.com The falling GDP and bond yields pushed the dollar to another new low.  The weak dollar has helped the I-fund has outperform U.S. stocks over the last week or two.  How low can it go?  It's getting more than ugly for the dollar now.                                     Chart provided courtesy of www.decisionpoint.com  Bottom line:  Stocks do not look very good here but the bulls did not completely give up yesterday when they probably could have.  The market might remain choppy as those buying value battle those who are anticipating a retest of the January lows. That's all for today.  Have a great weekend.  We'll, see you back here on Monday. Try the new Windows Vista Sidebar Gadget for TSP fund quotes by the Reed Consulting Group.  See the fund quotes right on your desktop.  Pretty cool.  Requires Windows Vista. Have questions?  Visit our message board for answers.  Would you like to be on our email alert list?  We will send you an email when there is a change to our asset allocation or market outlook.  Your email address will never be given out.  Read our privacy policy.  By signing up you agree to the TSP Talk Terms of Service.  More details below **. Are you bullish or bearish?  Join the Weekly Sentiment Survey. Like what you're reading?  Tell a Friend about us.