View RSS Feed

TommyIV's TSP Talk Blog

TSP Talk Weekly Wrap Up

Rate this Entry
Investors grew skittish over coronavirus news late in the week ending a two week streak of gains in stocks. Stock indices spent moments in positive territory early in the week but as the coronavirus outbreak grew so did the fears of its potential global economic impact. Its a flashback to the SARS outbreak in 2003 which was credited for nearly a 1% drop in China's GDP. But it was Friday when stocks really expressed concern and dip buyers were absent. U.S. stocks fell around 1% on the day. This was following a confirmed second case of the coronavirus in the U.S. by health officials.

In the coronavirus's shadow were good earnings reports from both Intel and American Express this week. Also the drama of Brexit is coming to an end as I's are being dotted and some T's are being crossed. The UK is expected to officially leave the EU by the end of the month.

With all the concern over the virus outbreak, investors were sure to collect safe haven investments. Gold and bonds were bought up which pushed the bond market further out of its turbulent trading channel of the last five months.

Investors will be balancing the coronavirus news with more earnings reports next week. The virus has the attention of the world for now especially as investors have been on the fence about how comfortable they are with global growth projections.

The F-fund outperformed for the week with a decent gain of 0.8% while both the C and S-fund were down more than 1%.




Here are the weekly, monthly, and annual TSP fund returns for the week ending January 24th:




The SPY (S&P 500 / C-fund) pulled back late this week but did not take any technical damage from it. Most may see this as a decent buying opportunity for the index but they must first sort out the seriousness of the coronavirus impact going forward. The index has only traded below its 20-day EMA once in four months. This could be the opportunity that the under-invested have been waiting for. The C-fund fell 1.01% for the week.




The Dow Completion Indices (S-fund) remained above its 20-day EMA Friday but did close below a rising trend line. Not a huge deal but makes technical players question it more than the chart of the C-fund. The S-fund lagged for the week with a loss of 1.30%.




EFA (EAFE Index /I-fund) fell below a rising trend line Thursday but hit is lows at the bottom of a slightly rising trading channel. Not far below the current price is an open gap but the index now must break below its 50-day EMA to get there. The I-fund took the least heat this week thanks to manufacturing data out of Germany that kept Germany stocks up while the rest of the world seemed to pull back. The I-fund lost 0.62% for the week.




AGG (Bonds / F-fund) was bought up by investors who feared the coronavirus potential impact on global economies. The index is now trading at levels that were not reached on the bond rally during the first half of 2019. Are bonds back? Have investors been spooked enough to search for low but safe yields? Two open gaps remain below which would need the index to renter trading channels to close. The F-fund led the TSP funds with a gain of 0.80% for the week.




Good luck and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.


Thomas A Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Facebook | Twitter

The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.

Submit "TSP Talk Weekly Wrap Up" to Digg Submit "TSP Talk Weekly Wrap Up" to del.icio.us Submit "TSP Talk Weekly Wrap Up" to StumbleUpon Submit "TSP Talk Weekly Wrap Up" to Google

Comments


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)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes