Good evening, TSPwire Tactical Investor!

Investors were very excited last week! Surprisingly large cap stocks outpaced everybody else (+1.3% in C Fund vs +0.57% in S fund and 0.95% in I Fund). Wall street bets on strong quarterly earnings and low impact of issues with sub-prime mortgages on the rest of financial industry. Among results next week particular confidence is expected in technology sector.

Our models models this week showed following results - S and C Funds got the best scores and ended up with STRONG BUY signal. I Fund was upgrade to STRONG BUY signal and came third. F Fund stayed at SELL. Based on the results we decided to keep our allocation at 50% in S Fund and 50% in I Fund. We believe that C Fund sprinted ahead this week and expect S Fund to play catch-up game this week.