Fund Rankings Update, 10/25/2013

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://ycprankings.awardspace.us/RankingTables.htm  and AMI Tables and Logs


Stocks carried the momentum from last week and marched higher. S&P 500 index closed at 1759, up 0.88%, Dow Jones Industrial Average gained 1.11%, while Nasdaq composite increased 0.74% for the week. Notably, S&P 500 index set a intra-day record high on Tuesday, and NASDAQ composite index close the week at 13-year high.  

This coming week is the fourth week of earning season. So far, two third of companies reported earning have met or exceeded expectation.  Economic data also showed that US is still growing at a slow pace and Fed is not tightening its easy money policy anytime soon.  With slow but steady growth and accommodating money policy, stocks have been trending up robustly the whole year. Without foreseeable growth-interruption event in next couple of months, the rally is expected to continue until it runs its course. 

Weekly Chart of S&P 500 index

Daily Chart of S&P 500 index

Fund Rankings Update, 10/18/2013

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://ycprankings.awardspace.us/RankingTables.htm  and AMI Tables and Logs


US congress reached an agreement to re-open the government and raise the debt limit right before the October 17 deadline. Although the agreement only provides a short term relief and kicks the can down the road to Jan/Feb 2014, stocks still went up strongly in reaction as another uncertainty is removed and investors get can back and focus on company earnings and economy development.  S&P 500 index closed at 1744, up 2.42%, Dow Jones Industrial Average gained 1.07%, while Nasdaq composite increased 3.23% for the week.

The political development in the past week validates what the charts have told us last week.  In the blog last week, we talked about that the markets were expecting a political solution to reopen the government and raise the debt ceiling based on the chart analysis for S&P 500 index. As a short term agreement has been reached,  the political turmoil is behind us and investors are turning their focus back on the company earnings (and they have been strong for this earning season so far) and economy growth. With S&P 500 index gaining momentum and trending upwards in both the weekly and daily charts, we expect to see the uptrend to continue for another few weeks.

Weekly chart of S&P500 index

Daily chart of S&P 500 index

Fund Rankings Update, 10/11/2013

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://ycprankings.awardspace.us/RankingTables.htm  and AMI Tables and Logs

Trading signal occurs in iETF model portfolio: Sell EWN, Buy EWP

A little daylight opening in resolving the government shutdown and debt limit issue pulled up the plunging stock prices. S&P 500 index closed at 1703, up 0.75%, Dow Jones Industrial Average gained 1.09%, while Nasdaq composite decreased 0.42% for the week.

Stock prices in the past week seemed to hope for an agreement to be reached to reopen the government and raise the debt ceiling. In the weekly chart of S&P 500 index, The index touch the trend line at 1650 and bounced back forming a "Hammer" candle pattern similar to what happened in the week of June 24.  In the daily chart of S&P 500 index, the index is gaining momentum after briefly hitting the short term support at 1640 level. This coming Thursday, October 17, is the deadline for reaching US debt ceiling. Whether a political solution can be reached by that time will greatly affect the market reaction. We shall see if the current price pattern is telling us the right things or not.

Weekly chart of S&P 500 index

Daily chart of S&P 500 index

Fund Rankings Update, 10/4/2013

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://ycprankings.awardspace.us/RankingTables.htm  and AMI Tables and Logs

With US federal government shut down entering the 5th days and no end in sight, stocks end up flat with downward bias for the week. S&P 500 index closed  at 1690, down 0.07%, Dow Jones Industrial Average lost 1.22%, while Nasdaq composite increased 0.69% for the week.

We talked about the divergence in daily chart and weekly chart of S&P 500 index last week. From the daily chart below, we can see the resilience of the index as it has been trying to hold above the 50 day moving average throughout the past week. If a political solution in Washington can be reached to re-open the government over the weekend (although unlikely), we can expect a pop in the index to the upside.  In the weekly chart, the index has come down a bit toward the trend line support at 1650. The best scenario is for the index to be flat for another one or two weeks so the index in daily chart and weekly chart can all lined up at around the same supports level and rally from there to the end of the year. This timing aligns well with the US debt ceiling deadline on October 17 so it is all hinged on if the congress and senate can reach an agreement to raise the borrowing limit. Otherwise, we will soon see the index heading towards the downside support at 1600 level. 

Daily chart of S&P 500 index

Weekly chart of S&P 500 index