TSP Talk Blog

Stocks opened flat on Friday after a sharp overnight sell off in the futures had completely recovered by the opening bell. However, the selling pressure resumed once trading began. Big tech is taking the brunt of the selling as it took the Nasdaq and S&P 500 for a bearish ride. Meanwhile, away from big tech, the Dow, the Russell 2000 small caps, and the Transportation Index were all up on the day, so what has been leading on the way up, is lagging on the way down.

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The Dow was up slightly on Thursday but the bleeding continued in the broader indices and the losing streak was extended. The losses were modest and fairly equal among the TSP stock funds. Yields and the dollar moved up, not helping the situation, and at this point, after a modest pullback, it's probably a matter of when investors are comfortable buying again with yields elevated and the Fed less dovish.

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Wednesday was yet another day that started out on the positive side and ended in the red. The bulls made another attempt to buy weakness yesterday, but the bears were ready with another wave of selling into the close. The Dow was fairly flat but the broader indices were down more sharply despite yields pulling back for a change. The dollar was also down and that helped the I-fund lead the TSP funds yesterday.

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The Dow posted a gain on Tuesday but for the broader indices the losing streak continued. Despite the losses, the Volatility Index (VIX) was down yesterday as stocks traded in a rather tight range all day, and some modest afternoon gains were wiped out after interest rate comment's from the Fed. Yields and the dollar were up again, and that's keeping the pressure on as stocks try to price in this latest push higher in yields.

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Stocks gapped up on Monday morning, and in a volatile market, Monday gaps are very vulnerable, and that proved to be the case as the Dow, up 400-points at its high yesterday, traded in a 730 range and closed 650-points off those morning highs. Israel fending off Iran's attack eased weekend nerves helping the market rally early, and strong retail sales was a good sign for the economy, but it also pushed the dollar and yields up to new highs for the year.

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