TSP Talk Weekly Wrap Up

Here are the up to date TSP fund returns through June 14. Last week’s losses took the C and S funds into negative territory for the month, while the I-fund is clinging to a small gain. The F-fund (bonds) closed the week with a 0.24% gain, but it is still down for the month.

I talked this past week in the daily commentary about the possible negative 1987-like setup we are seeing in the S&P 500. I’ll put that data aside for this Weekly Wrap Up and just show that the longer-term support is still rising but it has been tested recently. Buying at support in a bull market is usually a good idea but if this breaks there will likely be a change in the character in the stock market and playing a little more defense wouldn’t be a bad idea.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

Stock market crashes are very rare but we have seen a few ducks line up that gives me some concern that something may be brewing. I am personally staying defensive here while the 1987 comparison plays out, and any buys I make into the stock funds will be very short-term in duration until we get past this. The FOMC meeting will be on Tuesday and Wednesday of this week with Ben Bernanke giving a press conference on Wednesday. That could shake things up a bit.