Thrift Savings Plan

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TTT--12 May 06: High-Volume Drop

On Thursday, stock prices fell nearly all day with little in the way of relief with all TSP stock funds loosing at least one percent. NYSE breadth finished very negative, with 696 Advances and 2569 Declines. The NYSE Cumulative Daily Advance-Decline Line has remained below its April high, thereby signaling a divergence as compared to some of the price indexes, which made new multi-year highs on 5 May 06. NYSE Volume rose to 2.59 billion shares from 2.27 billion shares, confirming the weakness. Rising volume with falling prices is Bearish. For many months already, volume has been lackluster on rallies and sometimes heavier on declines, which is not a sign of a healthy Bull Market. Volume trends can be another indication that it is late in the Bull move.

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Current Action Limits & Allocation Percentages for 12 May 06:
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F Fund (Long-term Treasury Bond Index) If TLT > $83.86, move 10% into F Fund.
Close on 11 May was $83.34. Rate of change from previous close was -.49%.
Current F Fund allocation is nil.


C Fund (S&P 500 Index) No buy possible.
Close on 11 May was $130.95. Rate of change from previous close was -1.21%.
Current C Fund allocation is nil.


I Fund (EAFE Index) No buy possible.
Close on 11 May was $69.65. Rate of change from previous close was -1.01%.
Current I Fund allocation is nil.


S Fund (Wilshire 4500 Index) If $EWM or DWCP < $590.00, move 35% into F Fund.
Close on 11 May was $598.63. Rate of change from previous close was -1.60%.
Current S Fund allocation is nil.


G Fund (Money Market)
Current G Fund allocation is 100%.

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