Hello everyone
As most of you know, May has been a great month so far for the markets. All of the indexes are performing very well, and my preliminary proprietary data is reflecting that S-Fund will be the leader for this month. Today is May 22, so that leaves us with six (6) more trading days in the month. It should be noted that the markets are closed on Memorial Day, May 27.
Today witnessed some nervousness in response to the release of the recent Federal Reserve Board meeting minutes and testimony by Ben Bernanke to members of Congress. In summary, Ben Bernanke told Congress that the bond buying program in place, may slow, and that monetary policy may become tightened in the future.
As a result, the SP 500 Index closed lower, on very high volume. However I don’t believe this is reason to panic, as the evening SP 500 futures trading indicated that “traction” was found and the futures were trading higher than the day session lows. See charts below:
Again, I am not overly concerned about the nervousness surrounding the monetary policy, but in the end, we must let the market tell us what to do. For now, things are still good but today’s downward price action on high volume is an attention-getter. It will require that we closely monitor things in the weeks to come. Note that Friday May 24, will likely be a low volume day, due to traders on Wall Street not being at work, having left early for the long weekend. So whatever happens Friday, should probably be disregarded.
My opinion is that the economy is on the rebound and things are looking positive. My personal TSP Allocation is 100% S-Fund. At this point, 100% S-Fund or 50% S-Fund and 50% C-Fund would both be fine.
I wanted to say “thanks” for all the emails and compliments sent. As always, if you find this site useful, and/or your TSP balance has benefited from the information posted here, please pass the site to your friends and coworkers.
Thanks for reading….
– Bill Pritchard
