One week down, fifty one to go. Unfortunately is was an ugly week if you were in stocks. It’s not too much of a surprise to see big moves in the market the first week of the year. It seems we’re going to see another volatile year so weeks like this hold opportunity for the market timers to best the market. Be patient waiting for those opportunities and you should have a successful 2016.
Congratulations to those who were on the sidelines(G-fund) this week or even better those in the F-fund which was up 0.66% this week compared to the 7.17% loss in the lagging S-fund.
Here are the weekly, monthly, and annual TSP fund returns for the week ending January 8th:
The SPY (S&P 500 / C-fund) gapped down the first day of the year so an open gap will be lingering above to be filled. Some gaps get filled rather quickly and others, like the gapped we filled this week from early October, take some time. We can see this index fell below December’s declining support without a problem on Thursday and there is no apparent technical support to rely on until the September lows. The down trend has solidified itself after completing a second lower low. The question now is whether we’ll see a normal correction or if things will get more severe. The C-fund was down 5.9% this week.
The Dow Completion Index (S-fund) took the greatest hit this week ending down 7.17%. It too has some space before it can test technical support. The index fell below the September lows but if it plays out like it did in October then perhaps it will be a buying opportunity. This index has been in a bear market for months now so any attempts to buy it should only be with a short-term outlook.
EFA (EAFE Index / I-fund) also fell below its September lows, filling an open gap from October in the process. There are four open gap above EFA’s current price but that is not abnormal for this index because the overnight trading in overseas markets. The I-fund was down 6.38% for the week.
AGG (Bonds / F-fund) was the fund to be in this week as it had a gain of 0.66%. It also partially filled an open gap from late October as well as surpassing the December highs.
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.
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.