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Today's Comments (Short Term Outlook)
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Stocks and Bonds up Stocks rallied yet again as the major indices and TSP stock funds picked up another 1% on the day. Interestingly, bonds were up again also. The S&P 500 story remains the same and it is getting a little tough to talk about it with repeating myself. Resistance is holding above but the bears don't seem to be able to do any damage.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk Longer term there is some additional resistance connecting the the lows of the 2008 head and shoulders pattern. Nothing you haven't heard from us before, but we are still watching this area.  Charts provided courtesy of www.decisionpoint.com, analysis by TSP Talk One interesting development has been the strength in bonds (weakness in yields) while stocks have been rallying. Normally when the economy is showing sign of bottoming and growth, you will see bond yields start to rise (bond prices and the F-fund going down), but as you can see below, bond yields have not been moving higher recently. Sure, they are up since the market bottom in March, but they really haven't done much since May.  Charts provided courtesy of www.decisionpoint.com, analysis by TSP Talk In general stocks and bonds move in opposite directions, but sometimes they do both go up at the same time. That can be the case if there is too much money after too few investments. It could also happen when some investors are optimistic about the economy - so they buy stocks, while others are pessimistic and buying bonds. That is most likely what we are seeing now. That's all for today. I'm am more than ready for the weekend. Thanks for reading! We'll see you back here on Monday morning. |