Stocks were mixed this week with low volume trading and low volatility. Large caps were up slightly while small caps pulled back amidst the anticipation of the tax cuts. Debatably, the tax cuts may already be priced in but the fear of being left out of a potential rally – sparked from a tax cut deal – is keeping traders from selling. However, reason to buy seems to be diminishing and the potential for a ‘sell the news’ reaction could have them leaning the wrong way when an announcement is made. Perhaps the recent strength in bonds is telling.
It is also important to point out that this week’s action was a healthy pause to take the indices off their overbought levels without a decline in price. But make no mistake, buy and holders will eventually be punished, it is just a matter of when.
The I-fund led the TSP funds this week with a gain of 1.63 percent. The S-fund lagged with the only loss for the TSP funds. The F-fund outperformed the C-fund this week.
Here are the weekly, monthly and annual TSP fund returns for the week ending October 13th:
The SPY (S&P 500 / C-fund) felt the resistance for the top of the trading channel has been in since the beginning of September. The index also has old resistance to give some security to investors. The open gap remains in arms reach but with many support obstacles in the way. The C-fund was up 0.17 percent for the week.
The Dow Completion Index (S-fund) also sits at the old resistance of the past few months as well as the support of the trading channel of late August to the present. This is a good spot technically for the index. The S-fund suffered the only loss for the TSP funds this week of 0.29 percent.
EFA (EAFE Index / I-fund) continues to be relentless as it gapped up twice this week to push above rising resistant of the tops of the last few months. This adds to open gaps to the list that the index is above. The I-fund led the TSP funds for the week with a gain of 1.63 percent.
AGG (Bonds / F-fund) outperformed stocks this week with the big day Friday as the index gapped up and closed just off the highs for the week. The action Friday closed an open gap from early September and now the index is priced between to open gaps. The F-fund was up 0.49 percent 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 a recommendation. 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.