TSP Talk Weekly Wrap Up

Stocks were up for the second week in a row after falling hard the first two weeks of the year. The early losses were greater than the recent gains this month so the stock indices saw significant losses for January but some of the damage was repaired by the recent oversold bounce. This week was volatile but mostly sideways as the bulls were searching for their second wind while sitting on top of some solid support. Traders looking for direction sold in reaction to the Fed’s policy statement Wednesday in a typical ‘sell the news’ environment. The week’s gains came from Friday’s action and the TSP stock funds all a saw a more than 2% gain in a single day as the indices closed at their highs.

Surprisingly bonds rallied with stocks Friday so we saw gains for all the TSP funds this week. The F-fund did lag with just modest gains while the I-fund led with 2.55% gains for the week.

Here are the weekly, monthly, and annual TSP fund returns for the week ending January 29nd:

The $SPX (S&P 500 / C-fund) Had been forming a bear flag which broke to the upside Friday which is not what you typically see from a bear flag. Support from the August lows has held giving investors room to breathe to play some offence in what has recently been a stay on your toes or stay out of the market atmosphere. The C-fund was up 1.77% this week but finished January down 4.96%.

The Dow Completion Index (S-fund) has also seen some slight upward momentum after bouncing off declining support the previous week. After Friday’s rally the S-fund had a 1.29% for the week but this fund lagged for the month and the year so far ending with a loss 8.72% for January.

Oil helped the bull cause as it was up for the week. It was able to move above it’s 20-day EMA Thursday but now has declining resistance that could hold it back from further upward action.

EFA (EAFE Index / I-fund) led the funds this week as it continues to rally off of its V-bounce from the week before. Open gaps surround the index current price with three above and one below. The I-fund was up 2.55% this week and ended January 5.62% loss.

AGG (Bonds / F-fund) gapped up back into the rising trading channel it had established for the first couple weeks of January. It now has support from the October highs as well as possible support from the rising trading channel but there is now an open gap right below that will want to be filled. It is unusual to see both bonds and stocks up as investors are usually in one or the other but with stocks closing at their highs and bonds closing below their open Friday, we may have see them divert from eachother going into the first week of February. The F-fund was up 0.59% for the week and led the TSP funds in January with a monthly gain of 1.49%.

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.