Rankings of Average Momentum Index(AMI) for iETF and sETF have been posted at : http://yechen.pan.googlepages.com/
Fund Rankings Update, 9/26/2008
Weekly Average Momentum Index (AMI) rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/
Bear Sterns, Fannie Mac, Freddie Mac, Lehman Brothers, AIG, Merril Lynch, WaMu, Wochovia. The list of troubled financial institutes is getting longer and longer, while the $700 billion bailout plan is still up in the air. Uncertainty brings volatility. Dow Jones Industry Average opened this week at 11400, went down560 points to the low of 10840 before climbing back to 11140 at close of the week. Again, we are sitting at the side line before the trend turning around.
Bear Sterns, Fannie Mac, Freddie Mac, Lehman Brothers, AIG, Merril Lynch, WaMu, Wochovia. The list of troubled financial institutes is getting longer and longer, while the $700 billion bailout plan is still up in the air. Uncertainty brings volatility. Dow Jones Industry Average opened this week at 11400, went down560 points to the low of 10840 before climbing back to 11140 at close of the week. Again, we are sitting at the side line before the trend turning around.
iETF and sETF rankings update, 9/23/2008
Rankings of Average Momentum Index(AMI) for iETF and sETF have been posted at : http://yechen.pan.googlepages.com/
Fund Rankings Update, 9/19/2008
Weekly Average Momentum Index (AMI) rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/
It was a turbulent week for wall street. With Lehman Brothers went under and AIG was in the brink of bankruptcy, global financial system was in danger of collapsing. Think about the situation where money in the money market funds are no longer safe or the money in the bank is not there when you want to withdraw. Government was forced to step in and quickly came up with the bail out plan to restore the investor confidence. At the end of the week, the index stood about the same as the beginning of the week.
The biggest question for people with trading in mind during this chaos time is should I get in to buy or should I sell to cut loss. When the market was dropping like a rock due to tremendous fear, do you have the guts to buy? And when the market is popping up crazy, can you resist the greed to hold and sell to cut your losses? That is why it is so important to have a well defined buy and sell rule to guide you through these tough time if you decide to trade the market. Stick to your trading plan and do not let emotion take over your trading decisions.
It was a turbulent week for wall street. With Lehman Brothers went under and AIG was in the brink of bankruptcy, global financial system was in danger of collapsing. Think about the situation where money in the money market funds are no longer safe or the money in the bank is not there when you want to withdraw. Government was forced to step in and quickly came up with the bail out plan to restore the investor confidence. At the end of the week, the index stood about the same as the beginning of the week.
The biggest question for people with trading in mind during this chaos time is should I get in to buy or should I sell to cut loss. When the market was dropping like a rock due to tremendous fear, do you have the guts to buy? And when the market is popping up crazy, can you resist the greed to hold and sell to cut your losses? That is why it is so important to have a well defined buy and sell rule to guide you through these tough time if you decide to trade the market. Stick to your trading plan and do not let emotion take over your trading decisions.
iETF and sETF ranking update, 9/16/2008
Rankings of Average Momentum Index(AMI) for iETF and sETF have been posted at : http://yechen.pan.googlepages.com/
Fund Ranking Update, 9/12/2008
Weekly Average Momentum Index (AMI) Rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/
General market is still very weak. Each time we had a big rally, the market gave it back either the next day or the next couple of days. In this kind of market condition, even the sectors which are relatively strong can be dragged down by the underlying downward trend. The chart of S&P 500 index shows that the 13 week EMA and 28 week EMA keep trending downward. The STO [15,1] is below 50 and having trouble climb above 50. Holding cash at the sideline and waiting for the market to turn around is the best thing we can do now. Patient will be rewarded in the long run.
In the earlier blog dated 8/15, we discussed about FXI. I pointed out that $40 seemed to be the support level. Unfortunately, that suppoet level has been broken, and most likely FXI will continue its downward trend.
General market is still very weak. Each time we had a big rally, the market gave it back either the next day or the next couple of days. In this kind of market condition, even the sectors which are relatively strong can be dragged down by the underlying downward trend. The chart of S&P 500 index shows that the 13 week EMA and 28 week EMA keep trending downward. The STO [15,1] is below 50 and having trouble climb above 50. Holding cash at the sideline and waiting for the market to turn around is the best thing we can do now. Patient will be rewarded in the long run.
In the earlier blog dated 8/15, we discussed about FXI. I pointed out that $40 seemed to be the support level. Unfortunately, that suppoet level has been broken, and most likely FXI will continue its downward trend.
iETF and sETF ranking update, 9/9/2008
Rankings of Average Momentum Index(AMI) for iETF and sETF have been posted at : http://yechen.pan.googlepages.com/
Fund Ranking and FEMKX Update, 9/5/2008
Weekly Average Momentum Index (AMI) Rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/
Market performance this week showed that bear is still in charge of wall street. It started out Tuesday as the DJIA failed to hold the nearly 200 point gain and end up lost about 30 points. Market tumbled more than 300 points Thursday after bad economy news was announced. We talked about NASDAQ index formed a double bottom, and its STO[15,1] has climbed above 50 in the previous blog. At the close of this week, its STO[15,1] fell back below 50 and the double bottom formation has been broken. The way the index failed to break out from down trend, inidcating that the bearish sentiment is overwhelming.
Here is an update for our FEMKX timing model. We sold FEMKX on 6/13 and are still in cash position for this model. FEMKX closed this week at 22.75, a 26% drop since our sell signal.
FEMX Trading Log
Market performance this week showed that bear is still in charge of wall street. It started out Tuesday as the DJIA failed to hold the nearly 200 point gain and end up lost about 30 points. Market tumbled more than 300 points Thursday after bad economy news was announced. We talked about NASDAQ index formed a double bottom, and its STO[15,1] has climbed above 50 in the previous blog. At the close of this week, its STO[15,1] fell back below 50 and the double bottom formation has been broken. The way the index failed to break out from down trend, inidcating that the bearish sentiment is overwhelming.
Here is an update for our FEMKX timing model. We sold FEMKX on 6/13 and are still in cash position for this model. FEMKX closed this week at 22.75, a 26% drop since our sell signal.
FEMX Trading Log
Fund Buy On Buy@ Sell On Sell@ P/L
FEMKX 03/26/07 $25.15 08/06/07 $29.53 17.42%
FEMKX 09/10/07 $28.98 12/28/07 $33.82 16.71%
FEMKX 04/28/08 $31.73 6/13/08 $30.81 -2.90%
CASH 06/13/08 $1.00
iETF and sETF ranking update, 9/2/2008
Rankings of Average Momentum Index(AMI) for iETF and sETF have been posted at : http://yechen.pan.googlepages.com/
Subscribe to:
Posts (Atom)