TSP Weekly Wrap-Up

Hi everyone – It’s your weekly dose of TSP Talk from www.tsptalk.com.

I hope you enjoyed your Thanksgiving weekend. The market was moving along just fine during the typical light volume, holiday shortened trading week, but a surprise debt problem out of Dubai shook some nerves and took the major indices for a tailspin on Friday.

The C-fund was the only stock fund that remained in positive territory for the week, while the small-caps of the S-fund lost 0.85%,and the I-fund slipped 0.19%. For the second week in a row, the F-fund (bonds) led the way with a 0.60% gain.

Because of the light volume trading, it is possible that the sell-off on Friday was a bit exaggerated and we could see a rebound early this week, but the charts have been indicating that we could be due for a pullback and we may have some more downside action in store.

Tuesday begins a new month and gives us a new pair of interfund transfers to work with. I have been using mine early in the monthly lately, trying to play the strength that we have been seeing in the first half of the months, as we talked about a couple of weeks ago.

I have not decided exactly how to play it yet in December. It may depend on how the market reacts Monday, to Friday’s sell-off. Plus, historically much of the strong seasonality in December comes more toward the weeks before and after Christmas.

Chart courtesy of www.sentimentrader.com

Good luck, and thanks for reading! We will be back here next week with another TSP Weekly Wrap Up.

Tom Crowley
TSP Talk