The S&P 500 closed Friday at 7,575, just shy of its intraweek high and making it two consecutive up weeks in a row. Monday marked the first full trading week in July, and the Dow closed at a new record high above 53,000, the S&P 500 tacked on another half percent, and the NASDAQ 100 gained over 1% amid a rebound in semiconductor names. On Tuesday SpaceX debuted into the NASDAQ 100 as chip stocks lost momentum after a one-day rally. That said, gold prices fell for a fourth straight session, extending a sharp retreat from record highs reached earlier this year as investors continued to unwind safe-haven trades. On Wednesday renewed geopolitical tensions pressured the S&P 500 to a second day of losses, but those tensions eased on Thursday as the S&P 500 had its best day of the week. On Friday those gains continued, and the S&P 500 closed at 7,575, within 1% of its 2 June record high of 7,609. Next week earnings season begins, and good inflation and consumer sentiment numbers could be the propellant for a third quarter bullish breakout. For TSP TIPS all three equity funds (C/S/I) have Composite Scores (CS) of 100, but next weeks projections have the C fund being the only one remaining with that CS. It also shows the Performance Ranking (PR) scores gap narrowing. There are a few other interesting C fund items that also caught my eye. First, the C fund's high this week was higher than the previous two weeks high, while the S and I funds did not. Second, the C fund had the best return of the three for the week, and third, the gap between the C fund price and its record close (0.32%) is the narrowest of the three. As such, we are recommending the following new investment mixes for all three models. This will be our first July reallocation and expect a second fine tuning end of month one on Thursday, 30 July.
The S&P 500 closed Friday at 7,575, just shy of its intraweek high and making it two consecutive up weeks in a row. Monday marked the first full trading week in July, and the Dow closed at a new record high above 53,000, the S&P 500 tacked on another half percent, and the NASDAQ 100 gained over 1% amid a rebound in semiconductor names. On Tuesday SpaceX debuted into the NASDAQ 100 as chip stocks lost momentum after a one-day rally. That said, gold prices fell for a fourth straight session, extending a sharp retreat from record highs reached earlier this year as investors continued to unwind safe-haven trades. On Wednesday renewed geopolitical tensions pressured the S&P 500 to a second day of losses, but those tensions eased on Thursday as the S&P 500 had its best day of the week. On Friday those gains continued, and the S&P 500 closed at 7,575, within 1% of its 2 June record high of 7,609. Next week earnings season begins, and good inflation and consumer sentiment numbers could be the propellant for a third quarter bullish breakout. For TSP TIPS all three equity funds (C/S/I) have Composite Scores (CS) of 100, but next weeks projections have the C fund being the only one remaining with that CS. It also shows the Performance Ranking (PR) scores gap narrowing. There are a few other interesting C fund items that also caught my eye. First, the C fund's high this week was higher than the previous two weeks high, while the S and I funds did not. Second, the C fund had the best return of the three for the week, and third, the gap between the C fund price and its record close (0.32%) is the narrowest of the three. As such, we are recommending the following new investment mixes for all three models. This will be our first July reallocation and expect a second fine tuning end of month one on Thursday, 30 July.