Stocks produced more gains and another record high after spending most of the week below Monday’s open. It seemed as though the bears were finally making their move and we were going to see a shift in the recent momentum. That was the case for the first half of the week but by mid-Wednesday the bulls were back in business and losses began to be erased. Good earnings reports from just a handful of mostly big name tech stocks shut the bears down Friday and the S&P 500 produced new highs and ended the week just off those highs.
The change we did see was an increase in volatility. Although short lived, the early losses this week allowed opportunity for some investors to jump in or buy more. There is still a feeling of distrust in this market with just a few big names moving entire indices. Without other stocks to create a foundation there is a higher risk of a reversal.
More than half of companies have reported earnings but that will still be a catalyst next week. President Trump is announcing his choice for the Fed chief next week and the decision will definitely affect stocks.
The G and C-fund were the only TSP funds with gains this week with the C-fund up 0.23%. The S and F-fund were down slightly while the I-fund lagged.
Here are the weekly, monthly, and annual TSP fund returns for the week ending October 27th:
The SPY (S&P 500 / C-fund) was down early this week but found intraday support in its 20-day EMA. That set the lows of the week and the index erased the week’s losses and produced a new gain from there. The SPY did fall out of the trading channel its been in since late August but ended the week not far from the rising resistance trend line. The C-fund led the TSP funds this week with a gain of 0.23%.
The Dow Completion Index (S-fund) closed an open gap from the prior week as it sold off Monday. Selling continued for the index but also found support in its 20-day EMA. Most of the losses were erased by Friday’s closed but the index was still just off of Monday’s open to end the week down 0.07%.
EFA (EAFE Index / I-fund) lagged the TSP funds this week as a number of European markets were negatively affected by ECB extending its bond buying program at a reduced level. The index is parked at the 20-day EMA but there is an open gap just below the current price. The I-fund was down 0.33% for the week.
AGG (Bonds / F-fund) gapped down this week but did recover some losses Friday. The open gap is just above the current price but above that is potential resistance in the previous long-term support trend line. The F-fund was down 0.1% 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.