The climb to new highs continued this week with small caps joining and leading the way. Both the C and I-funds were up more than 1.5% this week but were overshadowed by the S-fund which more doubled their performance. Momentum from the rally that started the previous Thursday continued to start this week and stocks (large caps) strung together five consecutive days of gains before pulling back Thursday. That proved to just be a buying opportunity for dip buyers ahead of the scheduled talk of Fed Chairman Jerome Powell. Stocks rejoiced Friday over the continued lack of action by the Fed and the affirmation that the Fed plans to begin tapering this year but with no sudden movements.
Individually, a few Fed members have addressed publicly the need to begin tapering and stop flooding the market with money before inflation runs to uncontrollable levels. Jerome Powell in his speech Friday did not share the same urgency and rather felt the central bank should not overreact to the inflation surge. Of course the market agrees but it makes you wonder if Powell and his associates are remaining accommodative to the markets while Powell approaches reappointment in February. The increased cases of the Delta variant of Covid-19 have certainly changed their strategy since tapering was first discussed in the summer so Powell's selective words are aimed to keep options on the table without disturbing markets. The pull back in stocks early the previous week was welcomed by swing traders and dip buyers, but it was short lived. The bulls have had the Fed on their side for more than a year their camaraderie seems likely to continue.
Small caps outperformed this week even while lagging on the only down day of the week. The S-fund gained 4.41% this week and is now up 2.33% for August. The S-fund reached a new all-time high Friday for the first time since June 25th.
Bonds were down slightly falling just 0.05% for the week thanks to gains on Friday that erased most of the early losses of the week.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the auto tracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending August 27:
The SPY (S&P 500 / C-fund) climbed higher this week back to rising resistance which held in multiple instances. Theses tests have been followed by some degree of pull back and with the index reaching another all-time high, profit taking seems likely. The C-fund gained 1.54% for the week which lagged the performance of the S and I-funds.
The Dow Completion Index (S-fund) has spike in the last week running up 5.82% since the monthly low the previous Thursday. There has only been one down day in that run but it was followed by the 1.94% gain on Friday alone. Friday's gains gave the S-fund its first all-time high since June 25th. The index slipped fairly quickly in the weeks following June 25th. Is momentum strong enough to prevail into more new price territory? The S-fund gained 4.41% for the week.
EFA (EAFE Index / I-fund) gapped up Monday back above its 50-day EMA and the top of the open gap held as support for the remainder of the week. The index reached its highs near close Friday back above its 20-day EMA. The I-fund gained 1.86% for the week.
BND (Bonds / F-fund) slipped more than 0.15% in consecutive days Tuesday and Wednesday but the index found its lows off the 50-day EMA and top of an open gap. The F-fund gained 0.22% on Friday to erase most of the week's losses. The F-fund ended the week with a slight loss of 0.05% to lag the TSP funds.
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
wwww.tsptalk.com
Facebook | Twitter
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.
Individually, a few Fed members have addressed publicly the need to begin tapering and stop flooding the market with money before inflation runs to uncontrollable levels. Jerome Powell in his speech Friday did not share the same urgency and rather felt the central bank should not overreact to the inflation surge. Of course the market agrees but it makes you wonder if Powell and his associates are remaining accommodative to the markets while Powell approaches reappointment in February. The increased cases of the Delta variant of Covid-19 have certainly changed their strategy since tapering was first discussed in the summer so Powell's selective words are aimed to keep options on the table without disturbing markets. The pull back in stocks early the previous week was welcomed by swing traders and dip buyers, but it was short lived. The bulls have had the Fed on their side for more than a year their camaraderie seems likely to continue.
Small caps outperformed this week even while lagging on the only down day of the week. The S-fund gained 4.41% this week and is now up 2.33% for August. The S-fund reached a new all-time high Friday for the first time since June 25th.
Bonds were down slightly falling just 0.05% for the week thanks to gains on Friday that erased most of the early losses of the week.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the auto tracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending August 27:
The SPY (S&P 500 / C-fund) climbed higher this week back to rising resistance which held in multiple instances. Theses tests have been followed by some degree of pull back and with the index reaching another all-time high, profit taking seems likely. The C-fund gained 1.54% for the week which lagged the performance of the S and I-funds.
The Dow Completion Index (S-fund) has spike in the last week running up 5.82% since the monthly low the previous Thursday. There has only been one down day in that run but it was followed by the 1.94% gain on Friday alone. Friday's gains gave the S-fund its first all-time high since June 25th. The index slipped fairly quickly in the weeks following June 25th. Is momentum strong enough to prevail into more new price territory? The S-fund gained 4.41% for the week.
EFA (EAFE Index / I-fund) gapped up Monday back above its 50-day EMA and the top of the open gap held as support for the remainder of the week. The index reached its highs near close Friday back above its 20-day EMA. The I-fund gained 1.86% for the week.
BND (Bonds / F-fund) slipped more than 0.15% in consecutive days Tuesday and Wednesday but the index found its lows off the 50-day EMA and top of an open gap. The F-fund gained 0.22% on Friday to erase most of the week's losses. The F-fund ended the week with a slight loss of 0.05% to lag the TSP funds.
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
wwww.tsptalk.com
Facebook | Twitter
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.
