TSP Talk Weekly Wrap Up

It was another solid week for stocks as we saw new highs in a couple of the TSP stock funds. Rumors of a debt deal for Greece, and oil prices staying above $50 a barrel were key components for the market. The rumors weren’t conformed but it was enough to keep investors buying. Oil above $50, but under $60 a barrel seems to be the sweet spot for a healthy stock market.

Here are the weekly, monthly, and annual TSP fund returns for the week ending February 13th:

The SPY (S&P 500 / C-fund) reached new highs this Friday after two strong weeks and is up 5.28% for February and up 2.13% for the year. Not bad after a volatile January that ended down nearly 3% to start the year. Will the momentum hold or will traders lose faith and take their profits while they can? I guess it depends on what kind of news comes out over the long weekend and whether oil can stay above $50 a barrel.

The Wilshire 4500 (S-fund) is also doing well with new highs and it looks promising to continue after getting past where its two previous fake-outs could not. The S-fund and C-fund are neck and neck for the month after Friday’s close however S-fund is outperforming for the year.

The EFA (EAFE Index / I fund) broke out of its second bull flag on Thursday and has stayed above its 200-day EMA for two days straight leaving a couple of gaps that will want to be filled eventually. The I-fund is still the leading fund for the year and may find some support from its 200-day EMA, which it couldn’t quite break through at the end of November.

Traders were taking their money out of AGG (Bonds / F-fund) and moving into stocks. The AGG is now resting just above its 50-day EMA. It has been quite a shift in momentum this month after a strong January.

From www.tsp.gov: “Some financial markets will be closed on Monday, February 16th in observance of the Presidents’ Day holiday. The Thrift Savings Plan will also be closed. Transactions that would have been processed Monday night (February 16th) will be processed Tuesday night (February 17th), at Tuesday’s closing share prices.”

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 http://www.tsptalk.com/comments.php.If you need more help deciding what to do with your account, perhaps one of our premium services can help.

Tommy Crowley
www.tsptalk.com
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The legal stuff: This information is for educational purposes only! This is not advice or are commendation. 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.