Good evening, TSPwire Tactical Investor!

Euphoria that pushed majority of US large-cap stock indexes (C Fund) to their historical highs on Thursday was replaced Friday with bearish sentiment after Google and Caterpillar posted weaker-then-expected earnings. Small-cap stocks (S Fund) also fell sharply from record territory Friday as investors sought cover in the safety of Treasuries (F & G Funds). At the same time Asian markets (part of I Fund) rallied Friday, with shares in China ending sharply higher before its central bank raised interest rate. Stock Indexes in Hong Kong, Taiwan, South Korea, Indonesia and India all set records. European markets (part of I Fund) mostly fell.

Results of our models this week did not bring any new surprises. I Fund got the best score. C Fund came to the finish second. Both funds got STRONG BUY signals. S Fund came third and was downgraded from STRONG BUY to BUY state. F Fund improved since last week but still stayed in negative territory with SELL signal.

Based on results of our models we decided to allocate funds as follows: 50% in I Fund, 30% in C Fund and 20% in S Fund.