Last week the stock market suffered its worst Thanksgiving week since 1932. Every trend, tendency, seasonal bias, and extreme indicator reading was thrown out the window, and the market did what it wanted to do, which apparently was to go down.
The Dow lost 236-points on Wednesday and, after being up 104-points early, closed down 26-points in the abbreviated trading session on Friday.
This week, the herd once again increased their collective stock exposure (albeit modestly), while the Top 50 dropped their overall exposure by a significant measure.
Here's the charts:
The Top 50 dropped their stock exposure from 43.72% last week to a much more modest 29.86%. I suspect a number of Top 50 folks dropped off the list as some G
11/26/11 Not Your Traditional Thanksgiving Week
Stocks were pummeled during the normally bullish Thanksgiving week. It was the worst Thanksgiving week since 1932.
Europe can't get out of its way, the U.S. can't figure out how to cut the deficit, and the collapse of the hedge fund MF Global is still sending shock waves throughout Wall Street.
Let's make this quick during our holiday weekend. For the TSP, the C-fund lost 4.66%
TSP Talk Sentiment Survey results for the week of 11/28/11- 12/04/11 Hold: The TSP Talk Sentiment Survey came in at 44% bulls, 49% bears, for a bulls to bears ratio of 0.90 to 1. That is a neutral reading in a bear market which means the system will remain 100% G Fund for the week of 11/28/11 - 12/04/11.
Bear market rules are in affect 8/22/11: See latest survey results To discuss or comment on the Sentiment Survey, go to Sentiment Survey Talk
If the smart money is trying to shake us of our expectation for a Santa Clause rally this year, they're doing a good job of it. For the record, the day before and after Thanksgiving combined has seen only 12 losses in 58 years.
Make that 13.
So the beat continued today, or should I say beat-down, as the broader market posted significant losses in its sixth straight daily decline. Volume was not as thin as might ordinarily be expected in pre-holiday trading. That may