View RSS Feed

TSP Talk Blog

Another Bailout

Rate this Entry
6 Comments
by
tsptalk
, 06-10-2012 at 11:08 PM (8524 Views)

6/11/12

Despite a weak opening, stocks closed strongly on Friday and the Dow gained 93-points. Rumors were circulating about a bailout for Spain, but I am less concerned with what is causing it, as what is happening in the indices.

Daily TSP Funds Return
G-Fund: +0.004%
F-fund: +0.02%
C-fund: +0.81%
S-fund: +0.94%
I-fund: - 0.45%
For the weekly and monthly TSP returns, please see our recent TSP Weekly Wrap-Up.

The S&P 500 closed for a 3rd straight day above the 200-day EMA and the recent descending trend line. We are seeing some positive signs in the indicators, but the 50-day EMA is just overhead and that will be a test.


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

I see the futures are up strongly as I write this on Sunday night on news of a Spanish bank bailout, and that could propel the S&P to the 50-day EMA. How investors react to that test of resistance - after an emotional, gap up, Monday morning rally - may dictate how the rest of week goes.

I just got back in town so I am a little disorganized and not exactly on top of things. I think I will leave it there and rather than speculate, watch how this news plays out on Monday.

 Thanks for reading! I will be back on my regular schedule this week. Thanks for your patience while I was away last week. We'll see you tomorrow.

Tom Crowley


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 "Another Bailout" to Digg Submit "Another Bailout" to del.icio.us Submit "Another Bailout" to StumbleUpon Submit "Another Bailout" to Google

Categories
Daily Market Commentary

Comments

  1. imike023's Avatar
    Welcome back Tom and thank you for all you do here. Hoping for Monday a +2% gain on the S fund.
  2. Sensei's Avatar
    I see on this chart, as well as the ones Uptrend posted, what looks like it could be an inverse head & shoulders in the making. If it comes to fruition, that would suggest maybe some weakness this week, but strength the rest of the month. Any ideas from the peanut gallery about that?
  3. Warrenlm's Avatar
    Perhaps "the market" sees that finally the "in for a penny in for a pound" philosophy is dragging Germany further into bailouts and for the near term there won't be the reckoning.
  4. tsptalk's Avatar
    Quote Originally Posted by Sensei
    I see on this chart, as well as the ones Uptrend posted, what looks like it could be an inverse head & shoulders in the making. If it comes to fruition, that would suggest maybe some weakness this week, but strength the rest of the month. Any ideas from the peanut gallery about that?
    I saw that too but decided it may be too early to comment on because H&S's and inverted H&S's can act differently depending if the market is in an uptrend or downtrend. They are continuation patterns so if it's in a downtrend, the inverted H&S isn't necessarily bullish. But they can also be reversal patterns. Too early to say.
  5. kassypoo's Avatar
    Welcome back Tom. we missed ya a little (lol). Still a little miffed about yesterday's market. All the focus is on the bad news in Europe, yet our market went down a larger percentage than all of them. Doesn't make sense to me, but the market never does anyway (laugh).
  6. tsptalk's Avatar
    That's the first step to recovery - realizing nothing makes sense.

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