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Quiet slightly down day, tight ranges

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Light volume trading and very tight trading ranges continue during this normally more volatile month of October. Those numbers that are red below mean stocks were down - just in case you forgot. It's been a while since we've seen them.

Daily TSP Funds Return

The Dow closed down 32-points with similar 0.1X% losses in the three major indices and small caps, while we saw modest gains in the I-fund and particularly the Transports which gained 0.62%.

I was traveling again yesterday so I didn't get a chance to watch the action closely, but I see I didn't miss much. It just looks like stocks took a little breather from the recent run higher, although the spinning top formations are again indicating some indecision from investors and traders. I'd say the indices are well overdue for a little pullback, but that has been the case for weeks and there's been few signs of one.

As I mentioned before, my wife recently retired and so we've been doing a little traveling lately. I don't ever take vacations, per say. I take my laptop wherever I go and sometimes I just cut the commentaries short as a way to give myself some time off. That's what the situation is now so the commentary will be straight to the point today, sans rambling.


The SPY (S&P 500 / C-fund) keeps trading near that 255 area but not making much more progress. It's come a long way and investors may be running out of ammunition to buy more. That little flag like formation has led to some minor declines over the last couple of months, but we don't know how long the flag will last before breaking - if it does at all.




The DWCPF (S-fund) has been drifting lower since it peaked earlier this month, but it is not rolling over. Instead it looks more like a bullish flag forming, but that flag pole is so long, and resistance is getting a little thicker, that it might need more time to digest the recent gains.




The Dow Transportation Index made a new high yesterday, bucking the trend of the other major indices. The sharply rising trading channel has indeed continued, despite the nose bleed levels. It looks a little like the top of a roller coaster to me. Are the passengers getting ready to scream?




The EAFE Index (I-fund) was up yesterday and it is bumping up against its rising resistance line and possible wedge formation.




The AGG (Bonds / F-fund) had a solid day but more importantly it is back above the 20 and 50-day EMA's, trying the stabilize after the recent pullback.




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. Have a great weekend!

Tom Crowley


Posted daily at www.tsptalk.com/comments.php

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S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
Source: https://finance.google.com/finance