Learning point for me, why does Tom look at the Dow Transportation Index so much in the commentary. How does that relate to TSP stocks??? Looking for answers on this thanks.
June answer May with a roar! Were you invested for the ride! I was. I move funds towards the beginning of this month and it worked out well! Check out my video below. FYI I forgot to move funds on the auto tracker this month so things are a little off now. bummed about that but I am a part of a number of TSP groups so go figure I miss something every once in a while. I need to make me a list when I make IFT moves of my tracking sites!!!
Currently 50% C 50% S
IFT's left for JULY 2
Yearly return 11.25% (auto-tracker) 14.53% (my tracker)
-Top
TopNotch
Learning point for me, why does Tom look at the Dow Transportation Index so much in the commentary. How does that relate to TSP stocks??? Looking for answers on this thanks.
TopNotch
Short answer...historically it tends to lead market direction. I’m sure Tom has a host of other factors but that is why I use it in overlays.
That's about it. It's a very economically sensitive index that tends to lead the other indices, in theory.
I'm not a "Dow Theorist" per se, people that trade solely based on the Transports and the Dow relationship, but many are, and like support and resistance lines can be self-fulfilling prophesies, buy and sell signals in the Dow Theory can be too.
The day to day moves aren't a main concen, but the technical health of the Transports, particularly in relation to other indices, can be a negative or positive divergence indicator for the rest of the market.
https://thedowtheory.com/resources/t...theory/basics/
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Notice at market peaks the Transports tends to rollover first, sometimes by weeks. Also, the last two new highs in the S&P 500 are not being confirmed by the Transports. Instead we see lower highs. It's certainly not a day trading indicator, but rather says more about the strength, or lack there of, the rally in the Dow and S&P.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Nope.
C = SnP
S = Wilshire 4500 (DWCPF; next 4500 largest companies after the SnP)
See below link for those, plus I fund (EFA) and F fund (AGG)
https://finance.yahoo.com/quote/%5EDWCPF?p=^DWCPF
Sorry...that was only for "S" fund...use this link
^GSPC,^DWCPF,EFA,AGG | Stock Prices | Quote Comparison - Yahoo Finance
And now ^DJT is spiking 4% +...after reports that freight movement was down...very strange
A couple of airlines are flying high, and in particular JB Hunt Trucking, are contributing to the big day for the Transports today.
https://finance.yahoo.com/quote/JBHT?p=JBHT
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
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