View RSS Feed

TSP Talk Blog

Stocks fail again

Rate this Entry

Stocks were down sharply on Wednesday, and even a sharp Fed Minutes fueled midday rally was not able to hold into the close as the Dow shed 163-points.

Daily TSP Funds Return

The I-fund lagged and bonds rallied strongly.

I have a friend from New York in town this week through the weekend so I may not be as accessible and the commentaries may be brief for a few days. I've lived in Utah for over 20-years now and while I've gone back to New York many times since I have moved out west, this is my friend's first visit out here. I know him from working in McDonald's when we were teenagers, of all things. We're going to fly to Denver to catch a couple of Mets games so I may not be around too much in the next several days. Too much information? Just letting you know in case I'm running late updating the commentary, the Autotracker, etc. As usual, the TSP Talk Plus subscribers will get a little more insight, and the Plus System signals.


The SPY (S&P 500 / C-fund) fell back below the resistance line (blue) that the bulls hoped would mean the downside was over. Instead the inverted head and shoulder made another test of the lower end of the right shoulder. The H&S is still intact so no harm no foul yet, but we know other charts are breaking down so that is a possibility here as well.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The Dow Completion Index (S-fund) fell back below the 200-day EMA and the downtrend continues.



Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The
EFA (EAFE index / I-fund) had a bad day and now the large open gap has been filled. There is another open gap below but if that gets tested again, the inverted head and shoulders may be an official failure.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The price of oil continues to sink and yesterday's 3.4% decline puts it at its lowest point since the financial crisis in 2008-2009. This is an issue and could be the reflection of a weakening economy, although with the Fed still talking rate hikes, that wouldn't make sense. Let's hope the lower cost of oil brings gasoline prices down enough to put cash in consumer's pockets to stimulate the economy.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The
AGG (bonds / F-fund) were up as investors opted for bonds over stocks. It was an positive outside reversal day so there may be another pop early today.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php

Thanks for reading! We'll see you back here tomorrow.

Tom Crowley


Posted daily at www.tsptalk.com/comments.php


The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.

Submit "Stocks fail again" to Digg Submit "Stocks fail again" to del.icio.us Submit "Stocks fail again" to StumbleUpon Submit "Stocks fail again" to Google

Comments

  1. FireWeatherMet's Avatar
    Hey Tom, enjoy hanging out with your buddy.

    I too have a bud from NY that I hung out with ever since grade school, and once every few years when we get together, its like we go back in time a few decades (with a bit too much to drink-lol).

    Enjoy.

S&P500 (C Fund) (delayed)

(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)

(Stockcharts.com Real-time)
EFA (I Fund) (delayed)

(Stockcharts.com Real-time)
BND (F Fund) (delayed)

(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes