Stocks started to drift lower on Thursday of last week, on jitters
over the impending jobs report. Friday's jobs report justified
investor's nervousness as it came in lower than expected and and
stocks sold off sharply ending the week on a sour note and sending
all of the TSP stock funds into the red for the week.
For the TSP funds, the C-fund lost 2.41% last week, the S-fund
dropped 3.55%, the I-fund fell 3.03%, while the F-fund (bonds)
gained 0.32% and the G-fund was up 0.03%.
Here are the final monthly numbers for April is you missed them:
Friday's action caused the S&P 500 to once again break below the
longer-term rising support line and 50-day EMA. These are normally
pretty big warning signs, although last time this happened, the index
found support pretty quickly and regained those broken levels. I'm
not saying that will happen again, but it is not uncommon to see a
strong reaction to a jobs report get reversed in the coming days.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
In 2011, the S&P 500's high of the year was hit on the first
trading day in May. Things went a little sour after that as the old
"Sell in May and go away" axiom would have worked very well. Not
surprisingly we heard that phrase being tossed around a lot this
spring. The question is, will the first trading day in May be the
high of the year in 2012?
Last
week we showed that the Dow Jones Industrial Average (the "Dow")
was testing the upper end of the new rising trading channel and the
the prior 2012 high.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Here
is it now testing the lower end of the trading and the 50-day EMA.
Not normally the leader among U.S. indices, but this chart could be
telling the technical analysis story for us right now. Keep an eye
on the 13,000. Should that break, it may be the final red flag for
us.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The TSP is starting their Roth option this week. Here are some help links and info if you might be interested:
https://www.tsp.gov/whatsnew/roth/compareRoth.shtml
https://www.tsp.gov/whatsnew/roth/index.shtml
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom 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.
