The relentless uptrend of stocks continued this week despite poor earnings reports and lackluster news on the road to tax cuts. Volume remains low through all of this so whoever is still trading seems to be buying while everyone else is holding tight to stocks until everyone else decides to sell. What will spark a sell off is uncertain. Bad news does not affect the market anymore with bad earnings reports and poor economic news stories being the case this week. Those who have ridden the trend has been successful, but that strategy won’t work forever.
The C and S-fund were up this week with the C-fund leading with a gain of 0.88%. Both the I and F-fund were down for the week. The F-fund lagged the TSP funds with a loss of 0.45%
Here are the weekly, monthly, and annual TSP fund returns for the week ending October 20th:
The SPY (S&P 500 / C-fund) tested the trend lines of the rising trading channel the index has been in since the begining of September. The trend lines marked the high and low of the week. Double support from the trading channel and the peaks of the last four months held Thursday and sparked a reversal for SPY after a poor open. The C-fund was up 0.88% for the week to outperform the other TSP funds.
The Dow Completion Index (S-fund) opened up Friday out of the slightly downward trend of October. This left an open gap below. The Index had similar reaction to double support as SPY did after a poor open on Thursday. The S-fund was up 0.52% for the week.
EFA (EAFE Index / I-fund) opened the week near the highs of the week. The index traded slightly negative from there for the rest of the week and now sits back below old resistance that was broken last week. The I-fund was down 0.31% for the week.
AGG (Bonds / F-fund) also opened the week near its highs. The open gap opened last week was closed Tuesday. Bonds seemed to have support form the 50-day EMA Wednesday but followed Friday with opening below it to open a new open gap below and closing the week just off its lows. The F-fund was down 0.45% to lag the TSP funds 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.
Thomas A Crowley
Weekly Wrap-Ups Archive
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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.
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