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The Trump rally continues

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There were some nerves going into President Trump's Tuesday night address to congress, but as has been the case for the last 4 months, investors applauded when it was over. After breaking its 12-day winning streak on Tuesday with a small loss, the Dow rallied 303-points on Wednesday.

Daily TSP Funds Return

I'm a little surprised at the reaction to the speech. Did anyone expect him to get up there and tell the country anything that wouldn't be positive and pro-business? It seemed like we were setting up for a sell-the-news reaction but instead the market expected the worst and got something good but again, what did they think he would say? I guess the market just continues to look for a reason to rally. The program traders will keep their finger on that buy button until something tells them otherwise. When that otherwise will happen, I don't know, but we have a busy month ahead of us.

The obstacles in March include the next FOMC meeting where there's a fair chance that the Fed will raise rates again, and the U.S. debt ceiling deadline on March 15. That's two potential market movers and both come with some big uncertainty.


The SPY (S&P 500 / C-fund) gapped up again and reached new highs again. This obviously isn't normal action but perhaps the circumstances aren't normal either. As I mentioned above there are some economic events scheduled in the middle of the month and that will be a test for this rally.




The DWCPF (S-fund) poked its head into record high territory as the back and forth of big gains and losses over the last week continued.




The Dow Transportation Index made a new closing high after breaking out of its impressive 3-month consolidation.




The EFA (I-fund) also rallied on the news. As much as we hear that the rest of the world dislikes Trump, they sure didn't shy away from buying stocks off of his policy speech. There was an interest trading range yesterday as it gapped up back into the wedge formation with the low being at the bottom of the wedge, and the high at the top where it pulled slightly back.




The AGG (bonds / F-fund) had a bad day as investors sold bonds to furiously buy stocks. The technical picture just deteriorated on this action but that big open gap is almost sure to see some filling in the coming days.




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

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S&P500 (C Fund) (delayed)

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DWCPF (S Fund) (delayed)

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EFA (I Fund) (delayed)

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BND (F Fund) (delayed)

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