TSP Talk Weekly Wrap Up

It was another good week for stocks and bonds as we saw gains in all of our TSP Funds. Earnings have been coming in and we did see some questionable reports, but investors still seem to be in the mood to buy every dip. With Ben Bernanke’s assurance that the Fed will continue to assist while the economic data remains shaky, investors showed their confidence by staying the course.

Here are the up to date TSP fund returns through July 19. Modest gains for the stock funds with the I-fund leading the way, and bonds finally saw a nice bounce helping the F-fund.

The modest gains were enough to take the S&P 500 to new highs and so far it has remained above that old resistance line.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The trend is clearly up again after the pullback in June, but the S&P 500 is up over 8% since June 24th low and may be overbought in the short-term. The support line is rising quickly off that low – at an angle that may not be sustainable for too much longer.

The old resistance line is a key area to watch because in the last couple of years we’ve seen some breakouts like this, last several days before running out of steam and breaking down.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

I’m not saying this is what is going to happen. Just keep an eye on the May high for signs of whether this rally can continue.

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 http://www.tsptalk.com/comments.html.

Tom 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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