Weekly Average Momentum Index (AMI) rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/
Wall street's winning streak was kept alive by the better than expected earning news from Wells Fargo's. Stocks advanced for the fifth week with technology sector leading the way. The S&P 500 index closed at 856, up 1.7%, the Dow Jones Industrial Average increased 0.8% and the Nasdaq composite index gained 1.9% for the week. Notably, The weekly STO[15,1] (stochastics) of all the 3 indiexs have crossed above 50. The price of S&P 500 index and the Dow Jones Industrial Average are still a bit below the 28 week exponential moving average, while the technology laden NASDAQ composite index has just climbed above its 28 week EMA. With the depression concern behind us and the economy recession showing sign of receding, investors feel more optimistic about the future.
Following the "buy" signal last week in our SELECT model protfolio, a "buy" signal occurs this week in our ETF model portfolio. We will sell our cash position and buy into IGW. The recent rally is lead by the small cap and technology sectors as they usually did in the past recovery phase. The concensus in Wall street is that the economy is bottoming out and a recovery is six to nine moths away. Technology, and the emerging market are the leading sectors right now. I believe on Tuesday we will see some buy signals in iETF and sETF model protfolios.
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