TSP Talk Weekly Wrap Up

Stocks were thrown into positive territory Tuesday as the market was up at the open; the strong open also happened to be the peak of the week. Stocks sold off intraday Tuesday and the selling continued into Wednesday and Thursday.

Janet Yellen spoke Friday Morning about the next potential interest rate hike. Her comments were more hawkish than recent and she focused on the use of economic data for the Fed’s decision for the next rate hike. Stocks reacted fast to her comments and were initially up back into positive territory for the week. That was temporary as stocks turned around and were quickly at their lows for the week. A bounce at the later trading hours kept stocks off their lows.

The C-fund lagged the TSP funds as it ended this week with a 0.66% loss. The S-fund led the TSP stock funds with a slight loss of 0.09%. The G-fund was the only fund with a positive return for the week.

Here are the weekly, monthly, and annual TSP fund returns for the week ending August 26th:

The SPY (S&P 500 / C-fund) remains to move sideways in a tight trading channel above the July highs. The index closed below its 20-day EMA Thursday which was the first time this happened since June. It closed below it again on Friday as well as closed the open gap from early August. The C-fund was down 0.66% for the week.

The Dow Completion Index (S-fund) stayed above its 20-day EMA and despite the slight loss for the week, it remains within its rising trading channel. The index did fall below the support line of the trading channel and 20-day EMA intraday Friday but was able to close above both. The S-fund was down 0.09% for the week.

EFA (EAFE Index / I-fund) has continually widened its trading range since reaching the April highs earlier this month. The index produced an open gap at Tuesday’s open but it was closed Wednesday. The I-fund was down 0.62% for the week.

AGG (Bonds / F-fund) has also been moving in a tight range lately with help from its 20-day EMA as support. Bonds were down with stocks on Friday and AGG closed below its 20-day EMA. The F-fund was down 0.15% 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.