TSP Talk Weekly Wrap Up

Stocks opened lower last Monday morning but quickly recovered and never looked back as it was another big week for the market with earnings season getting underway.

It seems investors were also happy about Japan’s new monetary policy which is even more aggressive than the U.S’s policy of throwing $85 billion into the system each month. This has been a huge catalyst for the U.S. stock market’s gains and since neither country has been overly concerned with inflation, I guess Japan said, why not?

Here are the up to date TSP fund returns through April 12:

The S&P 500 hit the top of its rising trading channel on Thursday and backed off. The question is, are we seeing another peak and a move the bottom of the range or can the index rise the the top of the range like it has done often this year?

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The market leader is the Dow Transportation Index and there are some possible issues with this chart as Thursday’s peak is potentially a second lower low, which of course would be a downtrend should it come to fruition.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

Earnings season heats up this week with hundreds of reports on the schedule and so far investors have been happy buying in front of them. It has certainly not been a strategy to bet against this market, but could we be seeing a setup for a “sell the news” reaction?

Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.

Tom Crowley
Weekly Wrap-Ups Archive
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