TSP Talk Weekly Wrap Up

We saw some life in buyers who put up a fight at Monday’s close as well as producing a couple of positive days Tuesday and Thursday. However the nature of this 2016 market continues and the sell-offs Wednesday and Friday took away those modest gains along with the hopes of investors who have stuck with the market thus far. All the TSP stock funds were down more than 2% for the week.

Bond prices continue to rise as more investors are retreating from stocks; at least until a bottom is established in the market. The leading F-fund has been up 1% so far this year which is saying a lot when you’ve got the lagging S-fund down nearly 11% in the first two weeks of the year.

Here are the weekly, monthly, and annual TSP fund returns for the week ending January 15th:

The $SPX (S&P 500 / C-fund) tested the August lows Friday and actually fell under them intraday before quickly returning back above. This will play out more going into next week but so far this tells us these lows may be the solid support this market needs right now. Despite a couple of days ending in positive territory this week, the C fund was down 2.15% due to Wednesday’s and Friday’s action.

The Dow Completion Index (S-fund) is lagging so far this year with a 10.87% loss in the first two weeks. It tested descending support Friday and it too test the waters under the support prices before returning back above going into the close. The S-fund took a loss of 3.99% this week alone.

EFA (EAFE Index / I-fund) opened down Friday producing another open gap to add to three more above which is not unusual for this index. None the less, gaps due tend to be filled but it’s a matter of when. The index did seem to be affected by declining resistance from the November and December lows, particularly on Tuesday and Thursday where the highs of the day are found at the resistance price. The I-fund was down 2.89% for the week.

AGG (Bonds / F-fund) continues to climb up this year but it may be approaching overhead resistance at the same time stocks are coming into possible support. This is a plausible time from a technical standpoint if we’re going to see a turnaround in momentum for stocks and bonds so keep an eye out for this next week. The F-fund was up 0.35% for the week.

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.

Tommy Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
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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.