TSP Talk Blog

Stocks entered the new week with a little tentativeness after Japan's Nikkei posted it's second consecutive 3% daily loss. Investors didn't wait long however. About 30 minutes into trading the buying started and we saw steady, solid gains throughout the day and into the close. The Dow ended the day up 118-points.

Daily TSP Funds Return More returns

The strength in the yen is putting pressure on the Japanese market as we saw two big negative days push the index back into a wedge after a failed breakout in April. Being a major part of our I-fund, it is a concern, but the EAFE index was able to gain almost 1% despite this loss.



On Friday morning we get the April jobs report and estimates are looking for a gain of 207,000 jobs, and an unemployment rate of 5.0%. The Jobs Report Contest is now open in the forum. Click here for more info.

The S&P 500 (C-Fund) posted a decent reversal day on Friday so the follow-through to the upside on Monday made technical sense. There is resistance near 2090 and that is the immediate concern for the bulls. After that it's another battle against the old highs.




The DWCPF (S-fund) found support at a very comfortable area - the bottom of the trading channel and the 20-day EMA. I don't know how long this channel can last, but as long as it remains above the support line and the 200-day EMA, the bears should stay away from the S-fund. But if they break it will be throwing red meat to the lions.




The Dow Transportation Index also flirted with some trouble last week but so far the 50 and 200-day EMAs have held up. The rising support line did break last week so we will look for that support line near 8000 to potentially act as resistance on the way up, but it is rising.




The EFA (I-Fund) filled an open gap last Thursday and so far it has bounced off the 200-day EMA. Like the charts above, as long as the 200-day EMA holds, the bears should keep their distance.




The AGG (Bonds / F-fund) pulled back modestly as it nears the stubborn 110.75 area. Support keeps rising so eventually something will have to break, but there's still a lot of wiggle room between the two for now.




Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php

Thanks for reading. We'll see you back here tomorrow.

Tom Crowley


Posted daily at www.tsptalk.com/comments.php

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.