TSP Talk Blog

A Goldilocks jobs report that saw more jobs created than expected but an unemployment rate that climbed, was a recipe for another rally on Friday as investors moved past the debt ceiling concerns and focus back on economic strength and the Fed. The Dow gained 701-points and it was the small caps that led this time, rather than the typical large tech stocks, perhaps suggesting a shift on Wall Street?

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TommyIV is off this weekend so I am filling in with a brief Wrap Up of the wild week we had. I will have more in depth analysis in Monday's daily Market Commentary.

Optimism over a debt ceiling deal started about mid-week when The House passed a spending bill. The Senate then approved it and passed it on to the White House for signing. The indices had been coiling in a range for weeks and on Friday morning we got a Goldilocks jobs report and that helped push a lot ...

Stocks rallied to start the new month with the Dow adding 153-points, and gains of 1% or more in the more broader indices. The dollar was down sharply, in an odd looking day of trading, and that helped the I-fund lead for the first time in a while. And small caps regained Wednesday's losses and is flirting with a breakout from a large trading range - as is the S&P 500. Bonds were up as yields fell again.

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Stocks stumbled again on Wednesday as the two month long back and forth action continues. New month, new direction? Maybe, but what was the direction for the last two months? The Dow lost 135-points on the day and the losses were fairly broad across most indices. The Transports fell nearly 2% after failing at resistance again. The I-fund lagged again with another gain for the dollar, but there's an interesting development there that we'll talk about below.

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Another mixed day for stocks on Tuesday with the Dow down, the S&P 500 and small caps flat, and the Nasdaq rallying again. Neither side (bulls / bears) really got what they wanted, however the bulls appreciate that 4200 held on the S&P 500, but the bears go into Wednesday with a negative reversal momentum on their side. Bonds rallied as yields rolled over, and the I-fund continues to lag, even through the dollar was down slightly.

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