US-China 'phase one' trade deal announcement drove major market rally on Friday
C and I funds broke above 50-day moving averages with improving technical trends
Bank earnings and continued trade progress could drive markets toward new highs
Positive trade news gave the markets a major boost on Friday with the S&P 500 closing at 2970. President Trump and Chinese Vice Premier Liu He met in DC with POTUS announcing a “phase one” trade deal with China. The U.S. will be delaying tariff hikes that were supposed to kick in next week and China has agreed to purchase between $40 and $50 billion in U.S. agricultural products. Friday’s bullish news 1) reversed a S&P 500 three week losing streak, and from a technical perspective, 2) the S&P 500 closed above its 50 day Moving Average (MA) and 3) that 50 day MA reversed its trend to the upside. For next week, the bond markets will be closed on Monday, major banks report earnings, and hopefully we’ll see a continued bullish run towards new highs. For TSP TIPS, the C and I funds mirrored the S&P 500 action noted above with both of those funds crossing above their 50 day MA’s and reversing the MA trend to the upside. Additionally, both funds had an increasing performance ranking. As such, we are recommending an increase in our equity allocation. Please note that the TSP will be closed on Monday so this reallocation will take place with Tuesday’s closing prices.
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Positive trade news gave the markets a major boost on Friday with the S&P 500 closing at 2970. President Trump and Chinese Vice Premier Liu He met in DC with POTUS announcing a “phase one” trade deal with China. The U.S. will be delaying tariff hikes that were supposed to kick in next week and China has agreed to purchase between $40 and $50 billion in U.S. agricultural products. Friday’s bullish news 1) reversed a S&P 500 three week losing streak, and from a technical perspective, 2) the S&P 500 closed above its 50 day Moving Average (MA) and 3) that 50 day MA reversed its trend to the upside. For next week, the bond markets will be closed on Monday, major banks report earnings, and hopefully we’ll see a continued bullish run towards new highs. For TSP TIPS, the C and I funds mirrored the S&P 500 action noted above with both of those funds crossing above their 50 day MA’s and reversing the MA trend to the upside. Additionally, both funds had an increasing performance ranking. As such, we are recommending an increase in our equity allocation. Please note that the TSP will be closed on Monday so this reallocation will take place with Tuesday’s closing prices.