01/05/18

Good Evening, Our theory about the buying starting after the first of the year was correct! Stocks rallied again today with Nasdaq stocks that were beaten down in late November and early December leading the way. For the week, the Dow rose 2.3 percent, the S&P 500 gained 2.6 percent and the Nasdaq climbed 3.4 percent. Those were the biggest weekly gains for the S&P and Nasdaq since December of 2016. Rotation among sectors and stock caps were the theme in 2016. It was quite possible to be invested in something that was working great just to have your gains wiped out the next week all while the major indices continued to rise. The big sell off in small cap stocks in August comes to mind as well as the tech sell off in the beginning of December. Its not such a big deal in TSP though as the choices are limited but I know that some of you invest on the street as I do.

The days trading left us with the following results: Our TSP allotment added +035%. For comparison, the Dow moved up +0.88%, the Nasdaq +0.83%, and the S&P 500 +0.70%. So much for small caps rising after the new tax bill was passed. Although, I can’t help but believe that they will have their day. The danger in shifting your allotment now is that if small caps get hot and big caps cool off you will move from one sector of under performance to another just as it rotates. In other words you will miss the run. As hard as it is I am trying to be patient and not jump the gun on moving from the S Fund. We must always remember that this is not a sprint it is a marathon. It’s going to be a long year.

 

S&P 500, Nasdaq post best week in more than a year

The weeks action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Sell. We are currently invested at 100/S. Our allocation is now +1.71% for the year. Here are the latest posted results:

 

01/05/18 Prior Prices
Fund G Fund F Fund C Fund S Fund I Fund
Price 15.5456 18.0599 38.5979 49.2932 31.6088
$ Change 0.0010 -0.0176 0.2695 0.1844 0.1771
% Change day +0.01% -0.10% +0.70% +0.38% +0.56%
% Change week +0.03% -0.30% +2.63% +1.71% +2.44%
% Change month +0.03% -0.30% +2.63% +1.71% +2.44%
% Change year +0.03% -0.30% +2.63% +1.71% +2.44%
  L INC L 2020 L 2030 L 2040 L 2050
Price 19.6467 27.121 31.1901 34.0611 19.7797
$ Change 0.0240 0.0576 0.1152 0.1479 0.0973
% Change day +0.12% +0.21% +0.37% +0.44% +0.49%
% Change week +0.49% +0.86% +1.48% +1.74% +1.98%
% Change month +0.49% +0.86% +1.48% +1.74% +1.98%
% Change year +0.49% +0.86% +1.48% +1.74% +1.98%

 

 Now lets take a look at the charts. All signals are annotated with green circles. If you click on the charts they will become larger.
C Fund:
S Fund:
I Fund:
F Fund: The F Fund generated an overall sell signal when the PMO and MACD moved into negative configurations. The weakness in bonds bodes well for the rally in stocks going forward!
Nothing to add here. That’s all for tonight. Have a great weekend!
God bless, Scott 8-)
 
 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.
 
 
I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 
 
If you would like to receive more information about this introduction, please feel free to contact me at  [email protected]. 

 

 

 

 

 

 

 



Written By

Scott Grimes

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