Fund share prices as of: 5/08/07

Fund -	G Fund	F Fund	C Fund	S Fund	I Fund
	11.91	11.39	16.78	20.37	24.31
$  Change -	+0.00	+0.01	-0.02	-0.03	-0.27
% Change -	+0.00%	+0.09%	-0.12%	-0.15%	-1.10%
	L2040	L2030	L2020	L2010	L Income
	18.18	17.29	16.46	15.14	13.14
$  Change -	-0.07	-0.05	-0.04	-0.02	+0.00
% Change -	-0.38%	-0.29%	-0.24%	-0.13%	+0.00%

Ladies and gentlemen... The Fed
 

Stocks staged an impressive rally after an early sell-off.  The Dow ended the day down less than 4 points coming back from the earlier 75 point decline.  Maybe impressive is too strong a word because once again, more stocks were down than up by a large margin (56% down, 39% up).

Today stocks and bonds will be at the mercy of the Federal Reserve.  The consensus is strongly in favor of no change to the Fed Funds rate but equally important will be any change in the verbiage of the policy statement.  Concerns of inflation may leave a mark on both stocks and bonds, while any statements hinting towards a slowdown in the economy will give bonds a reason to rally, but stocks will need more interpretation before reacting.  We know a slow down in the economy can hurt earnings, but it will also encourage The Fed to consider a rate cut at future meetings.  You never know how investors will react.

Cisco reported earnings after the close and while they were not bad, the forward guidance was not the usual over the top we are used to from Cisco.  It traded down about 5% in after hours trading and the futures are slightly negative as I write this Tuesday night.  Japan started slow but rallied after their lunch break.  It is still open as I write.

With The Fed on deck I won't speculate on the short-term.  I am still excited about the market but can't seem to pull the trigger until we see some sort of a pullback.  It won't take much downside to get me to be a buyer, but without it, I would be chasing.

Read Trader Fred's TSP Trader System  commentary on the system page.