TommyIV's TSP Talk Blog

Stocks prices moved directionless through the week until sellers stepped aside mid-Thursday to the close on Friday resulting in more than 1% gains for U.S. stocks. The bears failed to gain any real momentum when the opportunity presented itself. Dip buyers were at work this week shutting down any pull-back keeping prices afloat. Stocks finished the week at their highs with some credit given to more news of progress on trade deals with China.

The upside momentum slowed down in March ...

The Fed remained accommodative to the market this week but the dovish Fed along with poor manufacturing data made the signs of global growth slowdown all too real. On Wednesday the Fed suggested they are unlikely to raise interest rates this year. Investors followed with a failed rally Wednesday that was revived Thursday establishing new 2019 highs for the S&P 500. The weekly gains were quickly given back and then some on Friday after manufacturing reports held more signs of an economic slowdown ...

The bulls reclaimed stocks this week without delay. After falling five straight days the previous week, stocks were up four of five days this past week. Along the way new highs for 2019 were produced for the S&P 500 Friday. Nothing major changed from the previous week. More poor economic data was released and the pull back was blamed on it so who knows what investors really care about. We may be back to celebrating data that reassures the Fed will remain dovish.

What may be more convincing ...

A shift in sentiment this week gave sellers the advantage after a year so far dominated by buyers. A gap open Monday was followed by a 'sell the news' reaction from trade deal headlines. The rest of the week was taken over by poor global economic data and concerns of a slow down in U.S. growth. The trade negotiations have gone on long enough that its likely that the deal has already been priced in; attention this week was back on the concerns that had traders retreating in late 2018.

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A surge in the later half of Friday solidified gains in large and small caps for the week that headed into Friday in negative territory. The action was choppy for stocks this week as trade and interest rates remain in a wait and see stage. Jerome Powell spoke this week but did not say anything that wasn't already said but the main consensus is the Fed will remain patient. Tariffs on Chinese goods scheduled to go into effect this week were postponed by the Trump Administration Wednesday. This is ...