After three straight down weeks, the S&P 500 rebounded to about where it was two Fridays ago, closing at 4067. Although it was a short week due to Labor Day, two of the four days saw advances of over one percent. While there was not much news on the economic front, the markets overcame a surge in bond yields that saw the 10-year U.S. Treasury at its highest level since June and the 30-year Treasury at its highest level since 2014. From a technical perspective, the S&P 500s Bollinger Band Index, which measures market volatility, indicated a reversal on Friday from an oversold position. Additionally, in our 25 stock portfolio we saw 16 new buys this week including AAPL, TSLA, TQQQ, F and KO. For next week, the big news will be the August CPI report. This will then influence the Feds 20/21 September meeting decision on interest rates, with the expectation being a 75 basis point hike. For TSP TIPS, this week both the C and S funds have 1) crossed above their 50 day Moving Averages (MA) and 2) their 50 day MAs are sloping upward. We have also seen their Performance Rankings improve. As such, we are recommending the following allocation.
After three straight down weeks, the S&P 500 rebounded to about where it was two Fridays ago, closing at 4067. Although it was a short week due to Labor Day, two of the four days saw advances of over one percent. While there was not much news on the economic front, the markets overcame a surge in bond yields that saw the 10-year U.S. Treasury at its highest level since June and the 30-year Treasury at its highest level since 2014. From a technical perspective, the S&P 500s Bollinger Band Index, which measures market volatility, indicated a reversal on Friday from an oversold position. Additionally, in our 25 stock portfolio we saw 16 new buys this week including AAPL, TSLA, TQQQ, F and KO. For next week, the big news will be the August CPI report. This will then influence the Feds 20/21 September meeting decision on interest rates, with the expectation being a 75 basis point hike. For TSP TIPS, this week both the C and S funds have 1) crossed above their 50 day Moving Averages (MA) and 2) their 50 day MAs are sloping upward. We have also seen their Performance Rankings improve. As such, we are recommending the following allocation.