Stocks traded virtually flat across the board for the week leaving the action to intraday traders tracking down daily peaks. It seems to be unpredictable as to what will motivate stocks to make their next move. February was a strong month for stocks overall and very different from January’s volatile action. So what’s in store for us in March? We may continue this tight range trading but eventually stocks will either keep reaching new highs or a reversal will sneak up on us. Oil is a key factor to keep an eye on which is now $49.76 a barrel. We’ve mentioned before that oil above $50 a barrel is a sweet spot for a healthy stock market.
Here are the weekly, monthly, and annual TSP fund returns for the week ending February 27th:
The SPY (S&P 500 / C-fund) came close to the rising overhead resistance line this week but broke the short-term trading channel Friday. Therefore we may see a test of the 20-day EMA. The C-fund had a slight loss this week down 0.24% and ended February up 5.75% for the month.
The Wilshire 4500 (S-fund) was also slightly down for the week but is still above its rising support line. Although there was very little action this week, the S-fund had the best return of February, up 6.05%.
The EFA (EAFE Index / I fund) ended the week up 0.49% and continues its climb up with no apparent indication of a pullback in the near future. I-fund still outperforms TSP funds this year and came in second, close behind the S-fund for February.
AGG (Bonds / F-fund) was able to end the week with a second rare bear flag breakout to the upside. Though modest, the F-fund was up 0.7% for the week which was enough to lead the TSP funds. The rising support line has held and AGG may be looking to fill an open gap lingering overhead in the near future.
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.
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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.