Stocks were down sharply early yesterday to the tune of about 250 Dow points, then nearly crawled back toward break-even by early afternoon, but the rebound failed and the indices tested the day's lows again. That would have been wild enough, but as the lows were being tested in afternoon trading, the buyers stepped up and the Dow shot up well over 300-points off of those lows to close up 153-points.
The market opened with a gap down and within about 30 minutes hit its lows of the day. From there it was a roller coaster up into positive territory and then back down into the red. And with just 40 minutes left to the trading day and the market seemingly poised to push lower into the close, a massive short covering rally developed that saw the S&P 500 move at least 4% in those last minutes. Our S fund was even more impressive with more than a 5% reversal into the close.
Updated 10-05-2011 at 08:02 AM by coolhand
October and the 4th quarter did not start any better than September and the 3rd quarter ended. The Dow lost another 258-points and we are seeing new intraday and closing lows on some of the major indices.
For the TSP, the C-fund was down 2.84% yesterday, the S-fund dropped 4.93%, the I-fund fell 2.95%, and the F-fund (bonds) gained
So much for support. As I suspected (and many of the rest us too) the market followed through on Friday's action and began the third quarter with not only heavy losses, but with the S&P 500 hitting a new 52-week low as well.
Not surprisingly, Europe continues to provide the market cues. Today, media reports circulated that Greece does not expect to hit a deficit target. That report along with a weaker September PMI Manufacturing Index
September and the 3rd quarter ended with a thud on Friday as the Dow lost 241-points.
For the TSP, the C-fund was down 2.50% on Friday, the S-fund lost 2.73%, the I-fund fell 3.28%, and the F-fund (bonds) added 0.12%.
For more on the weekly and monthly returns, please see our TSP Weekly Wrap-Up.