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Market Comments July 20, 2011 Current TSP Share Prices Twitter

Today's Commentary

Bull flag breakout Stocks rallied sharply yesterday on strong earnings and progress in the debt ceiling negotiations.  We saw a 202-point gain in the Dow, and strong earnings after the bell yesterday should help with possible positive follow-though this morning. For the TSP, the C-fund was up 1.63% yesterday, the S-fund gained 2.06%, the I-fund made 1.29% and the F-fund (bonds) was up 0.12%. The S&P 500 is back above the 20 and 50-day EMAs, it is making another attempt to rebound off of support, and is breaking to the upside of the recent bull flag.  We have seen big gains disappear quickly in the last couple of months, but we have also seen a very strong rally that, to many, was very painful to miss, so what happens from here should be interesting.                                                   Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk Will investors take profits, or will the under-invested jump in early so they don't miss another 2-week, 5% - 10% rally? I like what I am seeing in the charts despite the volatile, news-driven market we are currently in.  If you just read the headlines you would have no idea what to do, but right now the charts look promising.  Of course that could all change in a matter of days, but as of today we have what looks like a promising higher lower. In yesterday's commentary we talked about the recent relative strength in the Nasdaq 100 and yesterday's 2.3% gain showed that it wants to lead the market higher - although there is now an open gap.                                                   Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk After the close, Apple Computer posted a very good earnings report and the stock was up sharply in after hours trading.  Apple also happens to represent a large piece of the Nasdaq 100 index so look for another strong open in this index today. With earnings coming in pretty strong, and progress being made in the debt ceiling negotiations, nervous investors may once again be put in a position where they are under invested.  That would be the ammunition that the market needs to trigger another rally.  That is as long as the macro headlines behave. Thanks for reading!   We'll see you back here tomorrow. Tom Crowley Click here to discuss today's Market Commentary

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