TSP Talk Weekly Wrap Up

The bears put the pressure on early this week but may have left the market oversold allowing buyers an opportunity to get a piece of undervalued stocks. The bulls and the bears battled back and forth forth over next couple of days. A disappointing jobs report had an interesting effect on Friday, initially it pushed the market down sharply at the open, this brought the dip buyer in and traders must have remembered that bad news is good news if it persuades the Fed to keep interest rates low. Buying continued throughout the day and into the close putting the S&P 500 back in positive territory for the week.

The September jobs report came out with 142,000 jobs added after an expected number of 201,000 jobs. The unemployment remained at 5.1%.

The S-fund lagged and remained in negative territory for the week.

Here are the weekly, monthly, and annual TSP fund returns for the week ending October 2nd:

For the month of September most of the TSP funds ended with a loss. The I-fund lagged with a loss of 5.02% , the S-fund was down 4.8% , and the C-fund was down 2.47% for September. The F-fund lead September up 0.75%.

The SPY’s (S&P 500 / C-fund) was stuck in a narrow declining trading channel but breaking through to the upside Thursday. Friday’s gains pushed through longer term overhead resistance and the initial dip may have found support from the resistance line of the short-term declining trading channel. The C-fund ended the week up 1.1%.

The Dow Completion Index (S-fund) fell below the August lows on Monday which held as resistance mid-week holding back the Dow Completion Index from the action seen from the S&P 500. The index rallied on Friday breaking back above the August lows but remained in negative territory for the week down 0.41%.

EFA (EAFE Index / I-fund) holds a bear flag formation which it will break above if Friday’s action carries into next week. A gap was left opened after Wednesday’s open but the  rally on Friday filled a larger gap from the previous week. The I-fund led the TSP funds up 1.2%.

AGG (Bonds / F-fund) were also up for the week breaking through some resistance Thursday and then going on to test the rising resistance of its long-term trading channel intraday Friday before retreating to about even for the day. The F-fund was up 0.69% for the week.

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
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.


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