Saturday, June 7, 2014

TSP week numbers and charts. Awesome week.

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Last week was another good week and we are starting to look a little like 2013. We have a long way to go but if you stayed fully invested in the L-2050 you have a 5% gain for year, 2014. That is on pace for almost 12% and those are good numbers. My personal number, because of my conservative investing, is a little behind at 3.83% for YTD and paced at 8.79%. Does it upset me? Negative! Remember the goals. No double digit losses in any 12 month period and 7% a year gain. I’m on track. My last PIP was over 16% for 12 months and this years pace looks spot on. Another good thing happen with my TSP account value Thursday and Friday, and that is it closed at all time highs and for the first time, crested over 900K.

So what is there to see in the Charts this week? A lot of all time highs, YTD high’s, charts in transition, and a slow grind.

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The S&P 500 just keep setting all times highs day after day. There will come a time when profits and consolidation will have to take place, so keep that in mind. Currently we have no warnings with the C-fund.

efa  The International Index is also in great shape like the S&P 500 and is not making all time highs, but it is making YTD highs almost daily. There are no warnings here and I will stay invested here.

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Ok the Small Cap to me was the key to this current market grind and it finally broke through some critical points. The last 2 lower pivots highs, the red arrows, are now cancelled out. That means the short term down trend is cancelled and removed from the chart. The green CBL line, that was used for the daily buy, has also been removed. Price is back above the 50 day ma and a new red sell CBL warning level has been added. That green uptrend line will have to be re-drawn to show a slower uptrend and I will take care of that next week. So the Small Cap is in transition and it looks like the move back uphill is on. All of you should also know by now, I made a move Friday to put me back in the aggressive mode with my investments.

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As far as the Monthly outlook goes, you should still have some monies invested in Bonds. Everyone has to make their own decision on risk and right now for me, I want more risk. So I sold my position in bonds and put it all in the S-fund. On the daily chart above, price close right on the warning level. I will not say it is a warning, but it so damn close, you might as well consider it one. Everything with the bond chart is so tight that in one or two days it would be easy to have all warnings fired and a sell fired. With that said, my belief is that bonds is just going to do a slow grind climb all year long. I still see very little risk being invested here.

Conclusion: Stay invested. If your all G, I think the time is now to get a little bit more of a return and take some risk. If you just can’t stand risk at all, stay G or look to put a toe in by going all into the L-income fund. Let’s hope the Small Caps continue to run for at least a month or more and lead this market up to more all time highs.

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