Better than expected earnings reports from some big names, such as Netflix and Microsoft, gave stocks the juice to end the week in positive territory. The gains were modest, around 0.5% for TSP stock funds, but its the first positive week in October. This is good if you were in stock TSP funds for the week but is frustrating for those looking for a trend in the markets. It does seem as though stock indices may be tipping more into a bear market but the outperformance of big name stocks and a strong close on Friday weakens such an argument.
Seeking a long-term investment is near impossible with the conditions we’ve seen the past few months, especially with elections coming. If you are not too involved with your investments, it may be wise to step aside until the market establishes a direction, or, if you’re not subscribed already, look into one of the TSP talk premium services where professional financial analyzers use methods to best determine an investment position that best fits the current market atmosphere.
All the TSP funds had positive returns for the week. The S-fund led the TSP funds with a 0.51% gain but the C and I-fund were not far behind.
Here are the weekly, monthly, and annual TSP fund returns for the week ending October 21st:
The SPY (S&P 500 / C-fund) made some positive progress this week but not enough to make it above its 50-day EMA (purple line). If the index move above the 50-day EMA it has more declining resistance to test. The C-fund was up 0.41% for the week.
The Dow Completion Index (S-fund) led the TSP funds as its declining support held and the index made some positive movement. There is resistance from a declining trading channel it is within as well as from its 50-day EMA. The S-fund was up 0.51% for the week.
EFA (EAFE Index / I-fund) jumped up to its 50-day EMA from its 200-day EMA early this week but was unable to move further up from there. There was a gap opened in the process which adds reason to see the index pull back before retesting its 50-day EMA. The I-fund was up 0.49% for the week.
AGG (Bonds / F-fund) jumped back within the three month trading channel this week and even moved above its 50-day EMA despite the strength in stocks. There is still an open gap below to think about as we tend to see those filed but this one was opened back in June. The F-fund was up 0.33% 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.
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.