TommyIV's TSP Talk Blog

Political drama and headlines about Russia are finally getting into the heads of traders. U.S. stocks pulled back this week with drama in D.C. is giving them less hope of any promising tax reform in the near future. The technical set up of the major indices allowed this path of political headlines to do their damage on stocks as there are resistance areas putting the pressure on the bulls.

The dollar joined U.S. stocks in some selling this week and that gave a boost to the I-fund that which follows markets overseas. The I-fund led this week with more than a 1% gain while the F-fund also saw a gain of around 0.5%. Both the C and S-funds were down less than 0.5%.




Here are the weekly, monthly, and annual TSP fund returns for the week ending May 19th:




The SPY (S&P 500 / C-fund) started the week by jumping back above the highs of late February. The index sold off Wednesday leaving an open gap that was not filled by the end of the week. An old open gap from last month was filled in the process. The 50-day EMA may have acted as support again as it marked around the lows of the week before some losses were regained Friday. The C-fund dropped 0.32% this week.




The Dow Completion Index (S-fund) also gapped down Wednesday and also like the S&P 500, it partially refilled the gap by Friday. The difference is the 50-day EMA of this index may be acting as resistance rather than support. The S-fund lagged the TSP funds this week with a loss of 0.49%.




EFA (EAFE Index / I-fund) continued to stay close to the rising trend line and gapped up Friday to close near its highs for the week with the help of the weakness in the dollar. The index still has a decent open gap bellow which is crossing paths with its 50-day EMA. The I-fund led the TSP stocks this week with a gain of 1.01%.




AGG (Bonds / F-fund) gapped up again this week despite doing the same last week. Bonds broke above the highs of April but ended the week just above them. The chart now has two open gaps below while sitting above a trend line that can't be called support or resistance at this point. The F-fund was up 0.48% 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.