TSP Talk Blog

It was a choppy day on Wall Street on Tuesday as stocks opened higher but failed to hold those morning highs, and in the case of the Dow, S&P, and small caps, they failed to hold any gain at all. Bond yields moved up again (bonds and the F-fund down). The dollar was up and oil was down after some wild swings. There was some strength in the market leading Dow Transports and High Yield Corporate Bonds, but they closed well off their highs.

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After an ugly Thursday and Friday, Monday added to the bear market misery with more losses and now we are starting to see a little of that panic in the air. Every time you think you want to buy a dip, it goes down further. It's not until the masses give up on the buy side that this leg down will finally end, and that the sentiment behind bear markets. Stocks go up further than we expect on the way up, and down further than you'd expect on the way down. It seems to always happen. The Dow lost ...

After another hot CPI report, stocks opened on Friday with a barrage of selling. There was some stabilizing after the initial decline and into the final half hour of the day, but before heading into the weekend there was another push lower into the close. The Dow lost 880-points and it was another one of the those 2 -3% moves that we have come accustomed to seeing this year. Bonds were also down as yields moved up on the prospects of higher interest rates still to come.

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The Dow lost 638-points yesterday with an avalanche of selling in the final couple of hours after the bulls nearly pulled the indices into positive territory just after lunch. Whether this was the bulls relenting after several failed attempts to move above overhead resistance, or a move to step aside before Fridays CPI report, does make a difference, because if it's the latter, the indices could snap back the CPI isn't as inflationary as expected, and expectations are low. Bonds were down ...

The major indices have held up well recently but I can't say that I love the action as we see some deterioration in other parts of the market that could be raising more red flag than this economic environment already has. Rising yields, rising oil prices, selling in the economically sensitive Transportation Index, the High Yield Corporate Bonds are falling again, and that's not a good combination. The Dow lost 269-points and it, the S&P 500, and the Nasdaq have been doing a good job of holding ...