After a record close of 3122 on Monday, the S&P 500 took a bit of a breather and closed the week at 3110. While we closed slightly down this week, it was somewhat expected since we’ve had a run of six straight “up” weeks. Trade talk (again) was the hot topic and there still is uncertainty if the phase one deal will be signed this year. From a technical perspective, all major indices Moving Averages remain bullish and the Bollinger Band Index (BBI) remains in a neutral position at 35. A neutral position is “a good thing” since the market is not in an overbought or oversold condition. For instance, an overbought condition is a quick upward price movement caused by demand exceeding supply. When overbought, the demand will then dry up and the markets will correct back towards the norm. Oversold is just the opposite. Two prime examples of this volatility occurred in 2018 when we had an overbought condition in January/February (BBI: 133) and an oversold condition in December (BBI: 189). For TSP TIPS, the equity funds (C/S/I) all recorded new highs this week, but we are recommending a slight allocation change between the S and I funds due to the shift in performance rankings. Lastly, we wish everyone a Happy Thanksgiving!!
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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After a record close of 3122 on Monday, the S&P 500 took a bit of a breather and closed the week at 3110. While we closed slightly down this week, it was somewhat expected since we’ve had a run of six straight “up” weeks. Trade talk (again) was the hot topic and there still is uncertainty if the phase one deal will be signed this year. From a technical perspective, all major indices Moving Averages remain bullish and the Bollinger Band Index (BBI) remains in a neutral position at 35. A neutral position is “a good thing” since the market is not in an overbought or oversold condition. For instance, an overbought condition is a quick upward price movement caused by demand exceeding supply. When overbought, the demand will then dry up and the markets will correct back towards the norm. Oversold is just the opposite. Two prime examples of this volatility occurred in 2018 when we had an overbought condition in January/February (BBI: 133) and an oversold condition in December (BBI: 189). For TSP TIPS, the equity funds (C/S/I) all recorded new highs this week, but we are recommending a slight allocation change between the S and I funds due to the shift in performance rankings. Lastly, we wish everyone a Happy Thanksgiving!!