Stocks prices started the week down and produced only one day of gains in the shortened four-day week. The large cap C-fund lagged the short cap S-fund. Despite both only rising on Wednesday, the S-fund came out of the week with a gain 0.27% holding onto some of the gains of Wednesday's 2.22% gain, while the C-fund finished the week with a 2.11% loss. The I-fund slipped 1.14% for the week.
Inflation data brought more of the same concerns that keep investors hesitant to buy. The Consumer Price Index exposed an annual 8.5% rate in price increase which had not been recorded since 1981. Interestingly, the report sparked some early buying on Tuesday but that was quickly lost by the bulls and the day slipped into negative territory. Stocks had another promising morning Wednesday but, unlike Tuesday, the bulls were in charge through the day and into the close. That momentum was not upheld Thursday and large caps stocks slipped deeper to end the pre-holiday week.
The meat of earnings started this week. Banks earnings were less than promising and showed investors there is weakness building in the economy. The comparison to last year's bank earnings were a bit unfair though. Monetary stimulus from the Federal Reserve and Federal Government lifted bank revenues in the hot economy of 2021. Now the Federal Reserve is deliberately trying to slow down the growth of the economy and pull cash out of the system. The question for stock investors is whether the rate hikes and monetary tighten are already priced into the market or not.
Investors have been rewarded over the last couple years for risky investments. Those who expect more of the same are in denial that market conditions are very different. The bulls are keeping stock prices at fair prices for now and providing opportunity for swing trading. But the bond market is displaying some real change. The F-fund fell 0.79% this week which brings the typically stable asset to an 8.46% loss for 2022.
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 April 14:
SPY (S&P 500 / C-fund) remained in a trading channel this week bound by the 200-day EMA at the lows and the 50-day EMA at the highs. The trend is down for April and the prices have remained in a longer-term trading channel but still have the 200-day to break before continuing in this falling trading channel in red. Ending the week about even with its 200-day EMA, the C-fund ended the week down 2.11% to lag the other TSP funds.
The Dow Completion Index (S-fund) benefited from a 2.22% gain Wednesday surrounded by days of losses otherwise this week. The highs of this week were matched with the bottom of the open gap produced last week and the 20-day EMA. The index pulled back Thursday but held onto some leftover gains from Wednesday to give the S-fund a 0.27% gain for the week leading the TSP funds.
EFA (EAFE Index / I-fund) traded in a tighter range than the U.S. stock funds. The EFT is headed towards an open gap left behind in March. Remaining under its 20-day EMA and coming off its lows, the I-fund was down 1.14% for the week for a return between the C and S-funds.
BND (Bonds / F-fund) broke below a trend line established by previous lows in last few months. The ETF did bounce back from early losses but slipped 0.71% on Thursday to give the F-fund the bulk of its 0.79% loss 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.
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.
Inflation data brought more of the same concerns that keep investors hesitant to buy. The Consumer Price Index exposed an annual 8.5% rate in price increase which had not been recorded since 1981. Interestingly, the report sparked some early buying on Tuesday but that was quickly lost by the bulls and the day slipped into negative territory. Stocks had another promising morning Wednesday but, unlike Tuesday, the bulls were in charge through the day and into the close. That momentum was not upheld Thursday and large caps stocks slipped deeper to end the pre-holiday week.
The meat of earnings started this week. Banks earnings were less than promising and showed investors there is weakness building in the economy. The comparison to last year's bank earnings were a bit unfair though. Monetary stimulus from the Federal Reserve and Federal Government lifted bank revenues in the hot economy of 2021. Now the Federal Reserve is deliberately trying to slow down the growth of the economy and pull cash out of the system. The question for stock investors is whether the rate hikes and monetary tighten are already priced into the market or not.
Investors have been rewarded over the last couple years for risky investments. Those who expect more of the same are in denial that market conditions are very different. The bulls are keeping stock prices at fair prices for now and providing opportunity for swing trading. But the bond market is displaying some real change. The F-fund fell 0.79% this week which brings the typically stable asset to an 8.46% loss for 2022.
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 April 14:
SPY (S&P 500 / C-fund) remained in a trading channel this week bound by the 200-day EMA at the lows and the 50-day EMA at the highs. The trend is down for April and the prices have remained in a longer-term trading channel but still have the 200-day to break before continuing in this falling trading channel in red. Ending the week about even with its 200-day EMA, the C-fund ended the week down 2.11% to lag the other TSP funds.
The Dow Completion Index (S-fund) benefited from a 2.22% gain Wednesday surrounded by days of losses otherwise this week. The highs of this week were matched with the bottom of the open gap produced last week and the 20-day EMA. The index pulled back Thursday but held onto some leftover gains from Wednesday to give the S-fund a 0.27% gain for the week leading the TSP funds.
EFA (EAFE Index / I-fund) traded in a tighter range than the U.S. stock funds. The EFT is headed towards an open gap left behind in March. Remaining under its 20-day EMA and coming off its lows, the I-fund was down 1.14% for the week for a return between the C and S-funds.
BND (Bonds / F-fund) broke below a trend line established by previous lows in last few months. The ETF did bounce back from early losses but slipped 0.71% on Thursday to give the F-fund the bulk of its 0.79% loss 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.
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.
