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Stock were mixed on Friday after a stronger than expected jobs report. The initial reaction was very negative as the market has been looking for a slowdown in the jobs market to curb inflation concerns. However, the dip buyers who believe the Fed has pivoted their monetary policy to a less hawkish approach, showed up to buy the early weakness and the indices closed well off their lows and near the highs of the day. The Dow and small caps both finished with gains, and bonds rallied on a decline ...

For the week ending 12-02-2022

This is my analysis of the weekly charts for the S&P 500, IWM, the VIX and 10-year yields. Premium subscribers also receive a daily commentary with the daily charts and my timing system’s signals for both TSP and ETFs outside of TSP.

Current YTD returns thru 12-02-2022:

TSP:
G fund: 2.67%
F fund: -11.08% ...

Stock prices got a boost from Jerome Powell this week. A post-holiday hangover along with protests in China over zero Covid policies deflated stock prices early in the week. Both the C and S-fund were down more than 1.65% by the end of Tuesday. Investors had their sights on Jerome Powell's speech on Wednesday. The Fed Chairman isn't known for being accommodative to stock markets, so buyers were not lining up to be exposed before he spoke. But Powell did say what the market wanted ...

Nonfarm payrolls increased 263,000 for the month while the unemployment rate was 3.7%, the Labor Department reported Friday. The payrolls number was well above the 200,000 estimate, while the unemployment rate was in line. Average hourly earnings jumped 0.6% for the month, double the estimate, and 5.1% annually versus the 4.6% expectation. -- CNBC

Thursday was a day of digestion for stocks after the explosive Fed driven rally on Wednesday. We saw the Dow shed about 200 of Wednesday's 700+ point gain. The Nasdaq held up well, but was basically flat - as the S&P 500 and small caps. The I-fund led again after the dollar broke down sharply as the market adjusts to the less hawkish Fed. Yields also broke down giving the F fund a very healthy gain.

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