TommyIV's TSP Talk Blog

More pressure was put on markets this week as disappointing earnings reports reflected weakness in third quarter corporate performances. The damage wasn't too significant as dip buyers were there when you'd expect. However, a second week of losses in October gives more credibility to the bear argument.

The Fed Meeting minutes released Wednesday expressed Fed member concerns of waiting to raise rates will lead to rates being raised faster when needed to prevent potential runaway inflation.

All the TSP funds, other than the G-fund, were down for the second week in a row. The S-fund lagged with a 1.56% loss but the fund still leads the TSP funds for the year. The F-fund had a slight loss of 0.15%.




Here are the weekly, monthly, and annual TSP fund returns for the week ending October 14th:




The SPY (S&P 500 / C-fund) fell below the short-term support but found support from the September lows. The ability of the support line to hold shows there is still strength in this index despite what seems to be the beginning of a down trend. Overhead resistance is declining and this plays into the investor psyche when they have been waiting for this market to give them signs. The C-fund was down 0.95% for the week.




The Dow Completion Index (S-fund) fell below an already declining trading channel intraday Thursday. The index made its way back into the trading channel as it seemed the top of an open gap acted as support. Open gaps usually get filled so we'll have to see if this trading channel will be stimulated when forced to fill the the open gap. The S-fund lagged the TSP funds and ended the week with a 1.56% loss.




EFA (EAFE Index / I-fund) is heading right for an open gap from July. The index broke below the 200-day EMA which acted as support last month. EFA did jump back above the 200-day EMA Friday though but was held up by a short-term declining trading channel. The I-fund was down 1.39% for the week.




AGG (Bonds / F-fund) was declining steadily for the first three trading days setting up another weekly loss. Bonds did jump up Thursday as stocks sold-off which is a reaction we'd expect but haven't seen much lately. The open gap was filled Friday to lock down the loss of 0.15% 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.


Tommy Crowley
www.tsptalk.com
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The legal stuff: This information is for educational purposes only! This is not advice or are commendation. 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.