Waiting on the Fed

Yesterday was a rather slow day and today is likely to be slow as well - that is until the Fed takes the stage at 2:15 ET.  We are anticipating another 1/4 point hike in interest rates.  The important thing for the market is if they give any indication of what may happen the next time they meet.

There is a tendency for the market to move one way after the interest rate and monetary policy announcement, and reverse the action a day or two later.  Since the announcement is after our 12 noon ET deadline, there isn't much we can do to take advantage of it.

I remain in the camp that the market should be taking a break soon.  That doesn't rule out another shot at new highs, but if that happens I believe it will be another failed breakout.

Today is the 20th trading day in March.  I'm not sure what the significance of that is but you can see below that the next few days are well below average in both return and percentage of times being positive.


                             Chart provided courtesy of www.sentimentrader.com

Both bonds (F fund) and the dollar (influence on the I fund) are in no mans land, right in the middle of support and resistance.  Neither give any indication which way the next move will be. 

The G fund paid its penny gain yesterday, right on schedule.  We should see the next increase next Monday.

Because of the unknown element for stocks I won't add too much more today.  I have started a TSP Talk Blog which will allow me to post some midday updates when something of interest happens.  You can also post your comments there as well.  The reason I am using a blog rather than the message board is that you can receive these blog updates with a free RSS Reader.  This will eliminate cluttering up your email boxes.

That's all for today.  Currently 100% G fund.  Thanks for reading.  See you tomorrow.
 

RevShark's TSP Timing Newsletter is now available.  You can go to www.tsptalk.com/members to sign up.  TSP Timing is a weekly newsletter giving subscribers a target allocation determined by professional hedge fund manager James 'RevShark' DePorre.   Subscribers will navigate the financial seas along side the Rev while he manages millions of dollars for private investors.  Each week he will highlight TSP funds and a target allocation he believes will provide the best investment potential. The newsletters will go over charts of each fund with a technical breakdown of each by RevShark.  The subscription now includes a midweek updates as needed.

The subscription price will be $19.95/month which will include 4 to 5 weekly newsletters each month, plus midweek updates as needed.  The newsletter will be in PDF format so you will need an Adobe Reader (Download it free here.)

Still have questions about the TSP Timing Newsletter?  Click here.