It was a good week for stocks and TSP stock funds. Volatility continued as we saw large intraday swings but the bulls were able to take control and the indices are now flirting with breaking out to new highs. This is where the market has found trouble the last month so the battle will continue into next week. Greek debt, volatile oil prices, and a strong jobs report were the main catalyst, and earnings reports are still coming in.
Here are the weekly, monthly, and annual TSP fund returns for the week ending February 6th:
The SPY (S&P 500 / C-fund) did not quite make new highs but it broke out of a wedge pattern and now will look to use the old resistance line as support. It remained above the 50-day EMA, which is a bullish sign but there is still work to be done before it makes new highs.
The Wilshire 4500 (S-fund) broke out to new highs last week as the small caps continue to perform well. Two prior failed breakouts may have investors unconvinced that this one will hold.
The EFA (EAFE Index / I fund) actually moved above the 200-day EMA on Thursday but a weak jobs report triggered a rally in the dollar on Friday which caused the I fund to pull back. There is a small gap below the current levels that may need to get filled but the I fund has improved greatly so far this year leading The US funds but that 200-day EMA needs to be broken again.
The AGG (Bonds / F-fund) fell below its short-term rising support line as investors move money from bonds into stocks last week. The strong jobs report sent bond yields higher since bond prices move counter to yields the F-fund paid the price.
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 http://www.tsptalk.com/comments.php. If you need more help deciding what to do with your account, perhaps one of our premium services can help.
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.