We\'ve been talking about a third stimulus relief bill for months and this week it was finally signed, sealed, and delivered. Then, the Labor Department reported a better-than-expected reading on jobless claims, giving us another indication of pandemic optimism. On Thursday the S&P 500 hit a new record high, followed by another record high of 3943 by Friday’s closing bell and a weekly gain of over two percent. From a technical perspective, let’s look at the rotation that has taken place recently. To illustrate, this past Monday the Dow gained 0.97% while the NASDAQ Composite lost 2.41%. Quite a divergence. While the Russell 2000 Small Cap index and S&P 500 broke above resistance levels this week, the S&P 500 did it without some “familiar names”. Not participating and failing to break above recent highs were Facebook, Apple, Amazon, Netflix, Google, Tesla and Microsoft. Instead we had banks surging due to the rise in interest rates and Boeing up over 27% this past month with the return of the 737 Max. That said, we have seen a slight bounce in those “familiar named” stocks. If they can continue to trend upward and join in the bullishness, it won’t take long for the S&P 500 to break above that “4K” level and hopefully have a nice run to the upside. For TSP TIPS, both the S and C broke above recent resistance levels and lead the Performance Ranking. As such, we recommend the following reallocation.
We\'ve been talking about a third stimulus relief bill for months and this week it was finally signed, sealed, and delivered. Then, the Labor Department reported a better-than-expected reading on jobless claims, giving us another indication of pandemic optimism. On Thursday the S&P 500 hit a new record high, followed by another record high of 3943 by Friday’s closing bell and a weekly gain of over two percent. From a technical perspective, let’s look at the rotation that has taken place recently. To illustrate, this past Monday the Dow gained 0.97% while the NASDAQ Composite lost 2.41%. Quite a divergence. While the Russell 2000 Small Cap index and S&P 500 broke above resistance levels this week, the S&P 500 did it without some “familiar names”. Not participating and failing to break above recent highs were Facebook, Apple, Amazon, Netflix, Google, Tesla and Microsoft. Instead we had banks surging due to the rise in interest rates and Boeing up over 27% this past month with the return of the 737 Max. That said, we have seen a slight bounce in those “familiar named” stocks. If they can continue to trend upward and join in the bullishness, it won’t take long for the S&P 500 to break above that “4K” level and hopefully have a nice run to the upside. For TSP TIPS, both the S and C broke above recent resistance levels and lead the Performance Ranking. As such, we recommend the following reallocation.