Good afternoon, TSPwire Tactical Investor!

The stock market rose Friday to cap its best week since November, as scattered bits of good news from shopping malls to metal markets gave some reason to believe that the economy may be getting closer to a bottom. After falling to its lowest level in 12 years on Monday, the SP 500 stock index (C Fund) finished about 11% up for the week.

Most small-capitalization stocks gained Friday, led by the health-care sector, snapping a four-week losing streak. S Fund finished 14% up for the week.

Most Asian markets ended the week on a buyout note Friday, with Financials piggybacking on an extended rally in U.S. stocks. Energy-related shares rose on firm crude oil prices. In Europe, banks established the pace for a broad based advance as the pan-European index gained 6% for the week. I Fund finished 9% up this week.

Consumers are still cutting back, but not as steeply as they were, data showed this week. Many retailers have reduced inventories on their shelves to the point that any pickup in demand will force them to restock. Prices for copper and scrap steel are rising, a hint that manufacturers are buying again. Oil prices are up 23% in the past four weeks, a sign demand may be firming.

Still, most economists say the U.S. economy will shrink at a very steep 5% annual rate or so in the current quarter, which ends March 31st, and that it will continue to contract at a more modest pace in the second quarter.

For the next week we'd like to keep our allocation at the same level: 25% S Fund, 25% C Fund and 50% I Fund.