Stocks were down initially Monday but an unexpected turned around Tuesday switched the momentum and buying resumed, but with relatively light volume, as traders were anticipating the Fed's decision on rates Thursday. The Fed decided not to raise interest rates after the weak global market action we've seen this past month along with coupled signs of weakness in our own economy.
As you can see, stocks shot up at first reaction to the policy statement but just as quickly traders flipped to selling the overbought market into the close putting Thursday into red territory. The downside continued as Friday gapped down at the open and closed just off its lows back into negative territory for the week.
Friday's action is a better indicator of how investors felt about the Fed not raising rates. Bonds were up and the S-fund was less affected by the Fed's decision.
Here are the weekly, monthly, and annual TSP fund returns for the week ending September 18th:
The SPY's (S&P 500 / C-fund) broke through to the upside of its trading range Wednesday and on Thursday's spike after the FOMC meeting was momentarily above its 50-day EMA. It opened below the rising support of the trading channel Friday and bounced off support intraday before closing near its lows back below the trading channel. The C-fund had a modest loss of 0.12% for the week.
EFA (EAFE Index / I-fund) has been stubborn lately about filling its open gap from early September and even opened a new one above. We saw similar action in the EFA as the the U.S. markets, most notably was the spike on Thursday followed by a sell-off putting EFA back within its trading channel and now surrounded by two open gaps. The I-fund was down 1.09% for the greatest loss in the TSP funds.
With stocks up mid-week, AGG (Bonds / F-fund) fell below its rising trading channel Tuesday as it seems to mirror what stocks are doing. After the FOMC meeting Thursday, bonds shot back into its trading channel and opened slightly higher Friday. The F-fund led the TSP funds this week up 0.35%
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.
Tommy Crowley
www.tsptalk.com
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.
As you can see, stocks shot up at first reaction to the policy statement but just as quickly traders flipped to selling the overbought market into the close putting Thursday into red territory. The downside continued as Friday gapped down at the open and closed just off its lows back into negative territory for the week.
Friday's action is a better indicator of how investors felt about the Fed not raising rates. Bonds were up and the S-fund was less affected by the Fed's decision.
Here are the weekly, monthly, and annual TSP fund returns for the week ending September 18th:
The SPY's (S&P 500 / C-fund) broke through to the upside of its trading range Wednesday and on Thursday's spike after the FOMC meeting was momentarily above its 50-day EMA. It opened below the rising support of the trading channel Friday and bounced off support intraday before closing near its lows back below the trading channel. The C-fund had a modest loss of 0.12% for the week.
EFA (EAFE Index / I-fund) has been stubborn lately about filling its open gap from early September and even opened a new one above. We saw similar action in the EFA as the the U.S. markets, most notably was the spike on Thursday followed by a sell-off putting EFA back within its trading channel and now surrounded by two open gaps. The I-fund was down 1.09% for the greatest loss in the TSP funds.
With stocks up mid-week, AGG (Bonds / F-fund) fell below its rising trading channel Tuesday as it seems to mirror what stocks are doing. After the FOMC meeting Thursday, bonds shot back into its trading channel and opened slightly higher Friday. The F-fund led the TSP funds this week up 0.35%
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.
Tommy Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Facebook | Twitter
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.
