This was a nice week as the S&P 500 moved higher each day and finished Friday at a new record high of 4230. There was really no big economic news that drove the market until Friday morning when the employment numbers were released. All told, 850,000 jobs were added in June even though the unemployment rate ticked up to 5.9%. a little higher than expected. From a technical perspective, the S&P 500s climb was at a steady, controlled pace as it lacked the volatility sometimes associated with previous record highs. Evidence of this was a low Bollinger Band Index reading near 30 (over 70 is considered high). As we continue to make higher highs while keeping above previous lows, well Let the trend be our friend. For TSP TIPS, the C fund continues to move in lock step with the S&P 500 and had a string of new record highs also this week. This has been primarily due to the resurgence of the Mega Cap Tech stocks. The Top 5 holdings of the S&P 500 have about a 20% weighting and they are Apple, Microsoft, Amazon, Facebook and Google. On Friday, all five of them either made new highs (MSFT, FB) or are just shy. The S fund has also shown some recent strength as both of its short-term Moving Averages have now reversed to the upside and its Performance Ranking is higher than the I fund. As such, we are recommending the following reallocation and Letting the trend be our friend. Lastly, we wish everyone the best and have a great July 4th weekend.
This was a nice week as the S&P 500 moved higher each day and finished Friday at a new record high of 4230. There was really no big economic news that drove the market until Friday morning when the employment numbers were released. All told, 850,000 jobs were added in June even though the unemployment rate ticked up to 5.9%. a little higher than expected. From a technical perspective, the S&P 500s climb was at a steady, controlled pace as it lacked the volatility sometimes associated with previous record highs. Evidence of this was a low Bollinger Band Index reading near 30 (over 70 is considered high). As we continue to make higher highs while keeping above previous lows, well Let the trend be our friend. For TSP TIPS, the C fund continues to move in lock step with the S&P 500 and had a string of new record highs also this week. This has been primarily due to the resurgence of the Mega Cap Tech stocks. The Top 5 holdings of the S&P 500 have about a 20% weighting and they are Apple, Microsoft, Amazon, Facebook and Google. On Friday, all five of them either made new highs (MSFT, FB) or are just shy. The S fund has also shown some recent strength as both of its short-term Moving Averages have now reversed to the upside and its Performance Ranking is higher than the I fund. As such, we are recommending the following reallocation and Letting the trend be our friend. Lastly, we wish everyone the best and have a great July 4th weekend.