TommyIV's TSP Talk Blog

Earnings and the inauguration helped to keep the fire burning in the stock market. It seemed to be a likely week for the bears to step in and give this unrelenting bull run a break, but rather it was another run for the bulls to new all time highs. Stock indices did pull back slightly from the highs produced late in the week but dip buyers kept the price not far from the top. We saw some rotation between large and small cap indices; large caps had out performed for most of the week but small caps nearly caught back up Friday. This a telling sign that money doesn't want to leave stocks.

This action is great to watch unless you are on the sidelines. Its hard enough to buy markets near their top but we're in a bull run that has began to seem unreasonable. Although you can't give markets credit for acting reasonable that often. But the sell-off of last February and March must also linger in the mind of both those who are looking for entry points and those trying find the right time to exit. From a technical standpoint the indices don't look too out of shape. We can say all day how the markets are extended but the trading channels are holding and are rising. More earnings coming over the next month will have investors' attention. Momentum is enough to keep buyers trigger friendly.

The C-fund outperformed for the week with a 1.96% gain. Bonds were nearly flat for the week.




Here are the weekly, monthly, and annual TSP fund returns for the week ending January 22:




The SPY (S&P 500 / C-fund) came back from its loss the previous week to gain nearly 2% and produce a new all time high. The highs of course were limited buy a rising trend line and the index did pull back Friday toward the open gap left open early in the week. But that money did not just turn to cash but moved into the small caps.




The Dow Completion Index (S-fund) lagged large caps for the week but got a boost Friday with 0.55% gains while the C-fund took a loss. This kept the returns not too far apart for the week. The S-fund has more than double the return of the C-fund for January. Can it keep this performance up?




EFA (EAFE Index / I-fund) lagged the U.S. funds although did produce gains for the week. The previous week's highs still over shadow the index but the 20-day EMA is just below to act as support. Below the trend line is a couple of open gaps from December. The I-fund was up 0.69% for the week.




BND (Bonds / F-fund) chopped around slightly this week but ultimately ended where it started. The F-fund gained 0.1% and still has the 20 and 50-day EMAs above the current price.




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.