Dow posted 8th consecutive weekly gain as markets recover from fall's 'irrational sell-off'
C and S funds crossed above 200-day moving averages with improved performance and less volatility
Trade talks continue with March deadline approaching; potential for extension if needed
A Wall Street pundit commented this week that “The market is just getting rational again and simply rebounding from an irrational sell-off last fall." Evidence of this continued this week with the Dow closing higher for the 8th straight week. The S&P 500 is nipping at the Dow’s heels with 7 of the last 8 weeks up, closing at 2775 Friday. Avoiding another government shutdown and trade talks were in the spotlight this week with Treasury Secretary Mnuchin and US Trade Representative Lighthizer in China with their representatives. These talks will continue in Washington next week to try and come to a deal before the March deadline, which could be postponed if circumstances warrant. Last week in TSP TIPS I mentioned that “both the C an S funds are well within striking distance of crossing above (their 200 day Moving Averages) next week”. That happened along with an improvement in their Performance Rankings and a nice reduction in volatility. With the markets closed on Monday for President’s Day, we have a shortened week and will stay with our current allocation, but poised for our second and final monthly transaction next weekend.
A Wall Street pundit commented this week that “The market is just getting rational again and simply rebounding from an irrational sell-off last fall." Evidence of this continued this week with the Dow closing higher for the 8th straight week. The S&P 500 is nipping at the Dow’s heels with 7 of the last 8 weeks up, closing at 2775 Friday. Avoiding another government shutdown and trade talks were in the spotlight this week with Treasury Secretary Mnuchin and US Trade Representative Lighthizer in China with their representatives. These talks will continue in Washington next week to try and come to a deal before the March deadline, which could be postponed if circumstances warrant. Last week in TSP TIPS I mentioned that “both the C an S funds are well within striking distance of crossing above (their 200 day Moving Averages) next week”. That happened along with an improvement in their Performance Rankings and a nice reduction in volatility. With the markets closed on Monday for President’s Day, we have a shortened week and will stay with our current allocation, but poised for our second and final monthly transaction next weekend.