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TSP Talk Weekly Wrap Up

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Stocks were up for the week after some mixed action following early gains Monday. The stock indices failed to produce momentum in any direction giving us a second consecutive week of sideways movement after the strong move by the bulls in early May. The ups and downs were driven by a multitude of factors this week including dovish remarks by the Fed, an ease off the possibility of a trade war with China, North Korea, and sliding U.S. Treasury bond yields. Whether good or bad, nothing seemed to provoke this market to make big moves. You could look at this sideways movement as a sign of strength in support for stocks or a lack of conviction in buyers. The good news is traders will have the long weekend to think about it.

The F-fund outperformed the TSP stock funds this week as bond yields slid from recent highs. The credit was given to the Federal Reserve's step back on monetary action in the case of higher inflation rates. Both the C and S-fund were up slightly for the week while the I-fund fell 1.5% to convincingly underperform the other TSP funds.




Here are the weekly, monthly, and annual TSP fund returns for the week ending May 25th:




The SPY (S&P 500 / C-fund) is surrounded by trend lines keeping the index in the tight sideways trading channel for the last couple of weeks. Falling resistance has held but support from an April peak and a falling trend line are keeping the index from retesting its 50-day EMA. Tough call on its next move. What do you think? The C-fund ended the week up 0.33%.




The Wilshire 4500 Completion Index (S-fund) jumped above the March high early in the week but fell back below that price Tuesday as well as a tight rising trading channel it had climbing in May. The 20 and 50-day EMA's are below for support if this fails to progress to the January highs. The S-fund was up 0.11% for the week.




$IEE (EAFE Index / I-fund) had a decent start to the week but gapped down Wednesday below its 50-day EMA for the first time since early April. The index may be heading towards an open gap from early April but must fall below its 200-day EMA to do so. The I-fund lagged the TSP funds this week with a loss of 1.5%.




AGG (Bonds / F-fund) gapped up three days in a row to end the week as yields continued to slide. This filled the open gap from last week but the index closed below the open gap from April. After bonds seemed to be doomed, the index is now back above its 50-day EMA for the first time since mid-April. The F-fund outperformed the other TSP funds with a gain of 0.75% 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
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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.

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S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
Source: https://finance.google.com/finance