YCP ETF and Mutual Fund Rankings: June 2020

Fund Rankings Update, 6/26/2020

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted in "Rankings", "Trading Logs" pages, as well as in http://ycprankings.awardspace.us/RankingTables.htm.

Worries about the second wave of corona virus outbreak weighed heavily on investors' sentiment and pushed the major indices down. The resurgence in positive corona virus cases especially in California and across southern states has put a brake on states' re-opening plan. However, the negative sentiment was partially offset by better than expected manufacturing and service activities, and new home sales in May. For the week, S&P 500 index went down 2.86% to 3009, Dow Jones Industrial Average lost 3.31% , and the technology laden NASDAQ composite index decreased 1.9%.

S&P 500 index gave up most of its gain in the previous week but still closed above its 28 week EMA. 2950-2970 level is an important support level for the next couple of weeks as it is critical for the index to stay above the trend line to keep the up-trend going.

Weekly chart of S&P 500 index

Fund Rankings Update, 6/19/2020

Trading signal occurs in SELECT model portfolio: Sell FSPHX, Buy FSRPX.

Stocks rebounded from sharp decline in previous week with retail sale jumped 18% in May and Fed's announcement to keep the credit market afloat by buying corporate bonds. Energy stocks led the markets followed by healthcare and material sectors. For the week, S&P 500 index went up 1.86% to 3097, Dow Jones Industrial Average gained 1.04% , and the technology laden NASDAQ composite index increased 3.73%.

S&P 500 index touched its 28 week EMA early in the week and closed solidly above the trend line after rebounding mid week. As we have discussed previously, as long as the index stay above its trend line the uptrend remains. The 28 week EMA becomes a support level and it creates a buying opportunity every time the index gets near the trend line.

Weekly chart of S&P 500 index

Fund Rankings Update, 6/12/2020

Growing fear of second wave corona virus outbreak as reopening of economy is in progress turned investors sentiment sharply. Stocks suffered the worst weekly decline since mid March. For the week, S&P 500 index went down 4.78% to 3041, Dow Jones Industrial Average lost 5.55% , and the technology laden NASDAQ composite index decreased 2.3%.

With the 4.8% pull-back, S&P 500 index is 2.6% higher than its 28 week EMA of 2964. The index also rebounded and closed above its 28 week EMA. As the index is still above and near its trend line, it creates a buying opportunity for long position. If the trend line support failed to holds, there are two support levels below. The first one is a Fibonacci support at 2830 and the second is a long term support currently at 2625. Investors can utilize these support levels to build up their long positions.

Weekly chart of S&P 500 Index

Fund Rankings Update, 6/5/2020

Trading signal occurs in HSA model portfolio: Sell IUTIX, Buy MLAIX.

Trading signal occurs in iETF model portfolio: Sell Cash, Buy IOO.

Trading signal occurs in RSP model portfolio: Sell 05088, Buy FDGRX.

Sign of economy recovery boosted investor confidence as US added 2.5 million jobs in May and the jobless rate dropped from 14.7% to 13.3 % in April. Value stocks outperformed growth stocks, and small cap stocks rose more than large cap stocks. For the week, S&P 500 index went up 4.91% to 3193, Dow Jones Industrial Average gained 6.81% , and the technology laden NASDAQ composite index increase 3.42%.

S&P 500 index marched higher for the third week and close 7.9% above its 28 week EMA. Even though the percentage is higher than the usual 5%-6% warning threshold, the momentum indicator, STO[15,1], is still rising strongly below the overbought region. We think the index will continue to advance higher but with a slower speed to digest its gain and wait for the trend line to catch up for the next few weeks.

Trading signals occurred in HSA, iETF and RSP model portfolios this week, as stocks continued their bullish run with solid gains. All our model portfolios have moved away from cash positions and into more aggressive positions after 3 months.

Weekly chart of S&P 500 index