Stocks were green across the board for the week as investors celebrated the Fed's policy statement Wednesday. The week started with a strong open on Monday gapping above last Friday's close of 2053 which couldn't even fit on the chart. Stocks gapped down Tuesday and again Wednesday as traders were tentative about the Fed's policy statement due to public remarks by Fed members hinting to an earlier start date to rate increases. However the official statement pointed out enough negatives in the economy to satisfy traders to the point of triggering a buying frenzy. Investors took some profits Thursday but the rally continued Friday which could have been contributed to the drop in the dollar.
Here are the weekly, monthly, and annual TSP fund returns for the week ending March 20th:
So far in March we have seen a solid V-shape bottom from the SPY (S&P 500 / C-fund) bouncing off the rising support line. This week the C-fund had 2.67% in gains mostly backed by the response to the Fed statement Wednesday.
The Wilshire 4500 (S-fund) had solid gains for the week up 2.92% and broke the overhead resistance line Friday. The S-fund has been leading the way and doing really well but it's a little over extended and we may see it back within its trading channel next week. It may be a little vunerable above this resistance line.
The EFA (EAFE Index / I fund) ended the week with strong gains after steep losses in the dollar Friday leaving an open gap below. The 50-day EMA moved above the 200-day EMA which is a good sign for the intermediate term. We are also seeing similar bottoming action from what we saw at the beginning of the year.
AGG (Bonds / F-fund) finally decided on a direction thanks to the Fed, ending the week with a modest 0.8% gain. Bond prices jumped Wednesday driving the yield on the benchmark to its largest one day decline since October (-1.92%).
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.php. If you need more help deciding what to do with your account, perhaps one of our premium services can help.
Tommy Crowley
www.tsptalk.com
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