Good evening, TSPwire Tactical Investor!

The dollar fell to a fresh low against the euro Friday as more weak U.S. data increased expectations the Federal Reserve will cut its benchmark interest rate in the coming week to deal with a sliding economy. A University of Michigan/Reuters survey showed consumer sentiment deteriorated in October from the previous month, with main index declining to 80.9 from 83.4 in September. In late trading on Friday the euro was at $1.4395, up from $1.4313 late Thursday (the highest the 13-nation currency has been since it was introduced in 1999). The dollar’s problem didn’t stop with the euro. The greenback also reached a fresh 33-year low against Canadian dollar, a 23-year low against Australian dollar and it dipped to its weakest point in three months against the United Kingdom pound.
 
Crude-oil finished at an exchange-record $91.86 as traders continue to focus on tensions in the Middle East that could lead to oil-supply disruptions. A fire at a Houston refinery operated by Lyondell Chemical Co. helped to push prices higher in the last hour of the session. Analysts say that a crude-oil price of $100 looks like inevitable future that we will have to face very soon.
 
Stock traders are hoping that this year’s Halloween party will also double as a rate-cut celebration. Small-cap stocks (S Fund) are most likely to benefit from this rate-cut comparing to large-cap stocks. Because of that we decided to move portion of our funds into S Fund. Based on scores that our model yielded this week we will put 50% into I Fund, 30% into S Fund and 20% in C Fund.