Fund Ranking Update 8/8/2008

Stock market had a good rally this week. Comparing the two charts below and we can see an interesting phenomenon. The NASDAQ composite index which is laden with technology companies is in the process of forming a technical "double bottom." It closed this week a little bit above its 28 week moving average, and its STO(15,1) is trying to climb above 50. The S&P 500 index, a broader market index, is lagging the performance of NASDAQ composite as shown in the second chart. It still closed below its 28 week moving average and its STO is still struggling below 50. Usually the technology sector leads the general market in the recovery phase. However, I am not rushing to say that stock market is recovering now, that remains to be seen when the up trend is confirmed and firmly estabilished. For now, just be patient with the cash on the side line and watch the market developing itself.

Weekly Average Momentum Index (AMI) Rankings of SSPP, nSSPP, SELECT, ETF can be seen in: http://yechen.pan.googlepages.com/