Happy Thanksgiving Everyone!
So far this week, the TSP stock funds are doing very well; especially the S fund. All are over 1% and the S fund is up almost 2.5%.
I know the action is bullish, but I want to caution that things can go South in a hurry. I am not suggesting that such is imminent, I don't think it is, but it is all too easy to lose site of the fact that a rising market is not necessarily an indication of sound underlying fundamentals. Money printing can do wonders for optics. And in my previous post I took you to a link with a very recent interview with Lynette Zang, who is a very popular financial guru in some circles. That interview helps frame the reality of what is really going on.
Let's get on to the current pulse of the market.
The S&P and DWCPF are pulling away from their consolidation areas. Obviously, that is technically bullish. However, the indexes are getting overbought. That is just something to not, but I am not concerned with that as they can get a lot more overbought.
The CBOE is neutral. TRIN and TRINQ are neutral. NAAIM came in mostly unchanged. They were bullish last week and remain so this week. The bears among them are not challenging this market (shorting) much. That's a good thing if you are long stocks. Cumulative breadth is bullish and rising.
In summary, I am flabbergasted (as Lynette is) with how this market defies gravity, but I understand why it's happening. I cannot predict with precision how long this will go on, so everyone has to determine their personal comfort level with stock exposure. Gold and Silver are touted by many as good hedges (just saying).
Technically, the market remains bullish and the latest NAAIM reading suggests that will not change in the immediate future.
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