TommyIV's TSP Talk Blog

U.S. stocks participated as a domino in Monday's global sell-off. More coronavirus or COVID-19 numbers came about over the weekend that showed the virus was now documented in 28 countries and the exact spreading mechanisms of the virus are unknown. Fear of the virus's unknown magnitude had investors retreating stocks and moving into safe haven investments across the globe.
U.S. stock indices had been mostly unstirred by COVID-19 news up until late last week when buyers lost their foothold that last couple of trading days. The change in market behavior set up yesterday's sell off where the Dow had its greatest single day drop in more than two years.

At the time of writing this the Dow futures are up 200 points. The hope for a quick rebound will have some trying to 'catch the falling knife'. The market price action has been disrupted so swings in either direction are expected but sellers have the momentum.

Daily TSP Funds Return More returns

The S&P 500 erased nearly all of its February gains but was kept from more after hitting its lows on mark with the January lows.





Investors were quick to move to safe haven investments sending the 10 year Treasury note yield down near all time lows. Money also moved to precious metals; Gold hit a seven year high.





The S&P 500 (C-fund) opened below its 50-day EMA which has not been traded below since October. January's lows held as the only support the price action had yesterday. A rising trend line matches the 50-day EMA for possible double resistance. The C-fund fell 3.34% Monday.




The DWCPF (S-fund) also opened and closed below its 50-day EMA. Rising trends kept the price from continuing to the January lows. The S-fund took the least heat of the TSP stock funds with a 3.03% loss for the day.




The EFA (I-fund) lagged the TSP funds with the global sell-off dragging down the fund. EFA opened below its 200-day EMA. Now the index has two open gaps within reach. The one below was opened in October. The I-fund fell 3.96% for the day.




The Volatility Index jumped 25.03 yesterday which was its highest level since January of 2019.




The AGG (bonds / F-fund) were up but drifted from their highs. Two open gaps linger below as bond buying as accelerated the last few trading sessions. Concerns of the potential impact of coronavirus on the global economy has investors securing their money in long term bonds. The F-fund led the TSP funds with a gain of 0.35% Monday.



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

TommyIV filling in for Tom Crowley

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

For more info our other premium services, please go here... www.tsptalk.com/premiums.html