Stocks showed some life this week, but a single day of losses settle an extended market. All three TSP stock funds were up for the week for the first time since the week leading up to Christmas. A rally that started the previous Friday carried on through Wednesday. By Wednesday's close, the C-fund was up 3.56% for the week, the S-fund was up 4.02%, and the I-fund was up 3.44%. Stocks sold off Thursday sparked by disappointing earnings by Facebook that cut the weekly gains by than half. The week finished up Friday with some gains after a surprisingly good jobs report that sent stocks hire after some deliberation by investors on how to feel about good news in the economy.
It was not looking promising for the jobs report leading up to Friday. The ADP, who puts out their own jobs report, reported a loss of jobs in January; the White House issued an early warning of a loss of jobs due to the omicron variant. However, the non-farm payroll jobs report added 467,000 versus the estimate of 150,000. When the Federal Reserve is in decision mode this type of data can be frightening to market participants. Good economic data can justify more aggressive rate hikes for the Federal Reserve who is battling inflation. The other side of the coin is the economy is thriving despite the headwinds of a hawkish Fed and the continuation of a pandemic.
It has been a positive start to the new month with a gloomy day. Investors were discouraged in January, but signs of strength could get new buyers interested again. Volatility and market oscillation will continue so be prepared to feel the ups and downs whether you're in stocks or on the sidelines watching.
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 TSP AutoTracker 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 February 4:
The SPY (S&P 500 / C-fund) was up early in the week and extended quickly up to the 50-day EMA that met some descending resistance. This marked the high for the week. Gains were given back Thursday and the price was confined to what was produced on Monday. The index ETF ended the week below its 20-day EMA but produced 1.58% in gains; this lagged the other two TSP stock funds.
The Dow Completion Index (S-fund) broke out above the descending resistance Monday morning but only reached its 20-day EMA before retreating. The S-fund saw two day of losses this week versus just the one in the C-fund. However, it still outperformed large caps and was up 2.83% for the week. The counter point to its success was its 4.02% gain it had accumulated for the week through Wednesday.
EFA (EAFE Index / I-fund) had similar action for the week to the C and S-funds. A strong start to the first half was followed by a return to Tuesday prices. The ETF broke above its 20 and 200-day EMAs Wednesday but opened back below by Thursday. The I-fund gained 2.10% for the week to outperform the C-fund.
BND (Bonds / F-fund) continues to extend its decline. The F-fund fell 0.94% this week for its second worse week of 2022. Two open gaps were produced in the Thursday and Friday opens where the ETF gave up small gains for larger losses.
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
Last Look Report
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.
It was not looking promising for the jobs report leading up to Friday. The ADP, who puts out their own jobs report, reported a loss of jobs in January; the White House issued an early warning of a loss of jobs due to the omicron variant. However, the non-farm payroll jobs report added 467,000 versus the estimate of 150,000. When the Federal Reserve is in decision mode this type of data can be frightening to market participants. Good economic data can justify more aggressive rate hikes for the Federal Reserve who is battling inflation. The other side of the coin is the economy is thriving despite the headwinds of a hawkish Fed and the continuation of a pandemic.
It has been a positive start to the new month with a gloomy day. Investors were discouraged in January, but signs of strength could get new buyers interested again. Volatility and market oscillation will continue so be prepared to feel the ups and downs whether you're in stocks or on the sidelines watching.
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 TSP AutoTracker 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 February 4:
The SPY (S&P 500 / C-fund) was up early in the week and extended quickly up to the 50-day EMA that met some descending resistance. This marked the high for the week. Gains were given back Thursday and the price was confined to what was produced on Monday. The index ETF ended the week below its 20-day EMA but produced 1.58% in gains; this lagged the other two TSP stock funds.
The Dow Completion Index (S-fund) broke out above the descending resistance Monday morning but only reached its 20-day EMA before retreating. The S-fund saw two day of losses this week versus just the one in the C-fund. However, it still outperformed large caps and was up 2.83% for the week. The counter point to its success was its 4.02% gain it had accumulated for the week through Wednesday.
EFA (EAFE Index / I-fund) had similar action for the week to the C and S-funds. A strong start to the first half was followed by a return to Tuesday prices. The ETF broke above its 20 and 200-day EMAs Wednesday but opened back below by Thursday. The I-fund gained 2.10% for the week to outperform the C-fund.
BND (Bonds / F-fund) continues to extend its decline. The F-fund fell 0.94% this week for its second worse week of 2022. Two open gaps were produced in the Thursday and Friday opens where the ETF gave up small gains for larger losses.
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
Last Look Report
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.
