TSP Talk Weekly Wrap Up – 2/18/12

The market rallied on Thursday and Friday, taking the indices and funds into positive territory for the week after the slow start. Friday's action was mixed as the Dow and S&P 500 were up, but the market leaders - Dow Transportation Index, the Nasdaq, and the small cap stocks, were all down.

For the TSP, the C-fund gained 1.47% last week, the S-fund was up 1.92%, the I-fund made 1.56%, while the F-fund (bonds) lost 0.15% and the G-fund was up 0.03%.

For the month, the C-fund is now up 3.90%, the S-fund has gained 5.23%,the I-fund has picked up 4.23%, while the F-fund is down 0.39%, and the G-fund has added 0.07%.

After 6 consecutive days of the S&P 500 hitting highs in the tight 1351 to 1354 range
, we saw a bit of a breakout on Thursday last week with some follow-through on Friday. Incredibly, the narrow rising trading channel that started before Christmas is still intact so anyone fighting it has been missing out.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The problem is, the market leading Dow Transports did break down from its trading channel. It tested the 50-day EMA this past week, and so far has held, but it has trouble closing back above the 20-day EMA so this will be something to watch this coming week.

Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

It's a long holiday weekend so I will wrap this up so I can clear my head and get the market out of my mind. Something tells me things are going to get exciting in the next couple of weeks.

Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.

Tom Crowley

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.
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