TSP Talk Weekly Wrap Up

Traders were put to the test this week as an combination of economic and political news kept everybody on their toes. With a slow start to the new month as it was, things got interesting Wednesday when an ADP payroll report sent stocks overbought in front of the fed minutes where the headline statements were the fed’s opinion that stocks were overbought. In case that was wasn’t enough to send buyers in retreat, near simultaneously House Speaker Paul Ryan made comments about the lack of consensus on the tax reform between Congress and the White House. You can guess when and how the market reacted to this from the chart below.

Ending the week was news of the missile strike on Syria from the U.S in response to the chemical attacks used by the Syrian government. This news was coupled with the release of a disappointing jobs report Friday where an addition of 98,000 jobs were report with an expectation of 180,000.

With all of this the C-fund had a loss of just 0.2% where the S-fund lagged with just under a 1.0% loss. The F-fund produced a gain of 0.17% for the week but that was after its gains were cut in half after selling off Friday. Next week’s retail sales data will give traders a chance to reevaluate on the status of the market apart from the opinions of Federal Bank members.

Here are the weekly, monthly, and annual TSP fund returns for the week ending April 7th:

The SPY (S&P 500 / C-fund) pierced through overhead resistance intraday Wednesday before selling off after the catalytic comments. What catches my eye from this chart was the lack of established support that kept stocks up in a week where you’d expect to see traders stepping back. If the price will not go down to test the support, the support will makes it way to the price. Expect the rising support to be tested this upcoming week. The C-fund was down 0.2% for the week.

The Dow Completion Index (S-fund) stayed near its 50-day EMA to end the week despite the room below. The index took a hit Wednesday but buyers did relieve some damage Thursday. The S-fund lagged the TSP fund with a 0.99% loss for the week.

EFA (EAFE Index / I-fund) made its way to the rising support that has held so far in 2017. It held up again this week and will be a factor next week as well. The I-fund was down 0.65% for the week.

AGG (Bonds / F-fund) made its way above this year’s high this week and was doing well as a safe haven for traders. Nearly half the gains produced for the week were taken away when the price fell back to the falling resistance established last month. The F-fund led the TSP fund with a gain of 0.17%.

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.