View RSS Feed

TommyIV's TSP Talk Blog

TSP Talk Weekly Wrap Up

Rate this Entry
Stocks had a strong bounce back from the late January losses this week. U.S. large cap indices saw their best week since June thanks to strong corporate earnings following discounted prices produced by coronavirus fears. The coronavirus is still a concern and its unclear how long the outbreak will impact Chinese economy and to what extent. Investors are swallowing a lot of factors currently and which headline has their at most attention depends on where stock prices are on their current volatile swings. With prices cheaper heading into this week it was easier for investors to put cash to work when corporate earnings have been doing well.

Investors did take profits Friday despite a strong jobs report. But again as stocks were back to the top of the volatile swings Thursday with new highs being produced, poor European economic data and the coronavirus once more outweighed the U.S. jobs report. The reality is the effect of the initial outbreak of the coronavirus has sent stock prices into oscillation until investors can digest and agree on values.

An important step for trade was made by China this week as it announces to slash tariffs on items agreed upon in the phase one trade deal. Good news for the trade drama that had skeptics questioning whether China would hold its end of the deal.

The C-fund was up more than 3% for the week to lead the TSP funds. The F-fund fell just slightly by 0.05%. It would make sense to have seen bonds down more for the week as stocks become such a popular asset again but the underlying economic fears and potential impact of the coronavirus prevented much damage in the bond market.




Here are the weekly, monthly, and annual TSP fund returns for the week ending February 7th:




The SPY (S&P 500 / C-fund) began the week below its 20-day EMA but was able to produce new highs by Thursday. A couple of gaps were left open this week; one smaller gap from Wednesday's open is not on the chart. To close the lower gap the index would need to fall back below its 20-day EMA. Not unlikely with the current volatility. The C-fund led the TSP funds with a gain of 3.21%.




The Dow Completion Indices (S-fund) teased previous highs mid-week but reversed Friday to stop short of the open gap made earlier in the week. The S-fund was up 2.54% for the week.




EFA (EAFE Index /I-fund) also had an impressive comeback this week. It did not approach or beat its highs like the other funds though. A gap from the initial pull back in January was filled but another is still open below the current price left from a gap up early this week. The 50-day EMA was broken last month after being traded above since October. Its back above the moving average now and it held as the low for Tuesday's open. However with problems with economic numbers and the still spreading coronavirus, its hard to have much confidence in the I-fund going forward. This week the I-fund was up 2.52%.




AGG (Bonds / F-fund) pulled back for most of the week while investors rushed back to stocks. However those early losses were mostly erased when poor economic data coming out of Europe along with stock sell-offs sent investors back to safety. The F-fund lagged the TSP funds with a loss of 0.05%.




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