Fund Rankings and FEMKX Updates, 1/29/2010

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, nSSPP, SELECT, ETF, iETF, sETF have been posted at http://yechen.pan.googlepages.com/

Thursday I saw on "Mad Money" (yes, I do watch the show once a while) that Jim Cramer agreed with me that investors were looking for reasons to sell stocks. During the week, we have seen the great company earning reports and last quarter's high GDP (5.7%) number failed to give market a boost. Instead, the negative sentiment prevailed and the stock markets continued their slides from the week before. The S&P 500 index closed this week at 1073, down 1.6%, the Dow Jones Industrial Average decreased 1.0%, and the Nasdaq composite index lost 2.6% for the week.

Going forward, the fundamental of the economy is still looking positive. Companies are making money, and will start hiring people. When people have jobs they will start buying houses. It is just that simple. The good time may not come right away, but it will arrive eventually. From technical point of view, the monthly chart has indicated that we are in the beginning of the multi-year up trend. So I will treat this sell-off as a correction for the rally since last March. The stock markets need to take a break to digest their gain for the past 10 months, and in this respect, the correction may be a good chance for people who have missed the rally to get back in. In the weekly chart of S&P 500 index below, the STO has fell below 75 and looks to break below 50, so the downside risk is higher than the up side. However, the price has broken its 13 week trend line and is approaching its 28 weeks support line so we may see some rebound next week. We won't know the extent and the duration of this correction until it is over.

(click picture to enlarge)

Here is the monthly update for our FEMKX timing system. We will buy FEMKX if its STO[15,1] climbs above 50, hold at least for a month, and sell it if its STO[15,1] falls below 75. We bought FEMKX on 3/30/09 at $12.31. We sold FEMKX this Monday at $21.96 with a gain of 78.4% after holding it for 301 days. Right now, we are holding cash since its STO[15,1] stands at 48.8.

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 3/27/09 $1.00 0.0%

FEMKX 03/30/09 $12.31 1/25/10 $21.96 78.4%

CASH 1/25/10 $1.00

Fund Rankings Update, 1/22/2010

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, nSSPP, SELECT, ETF, iETF, sETF have been posted at http://yechen.pan.googlepages.com/

Trading signal occurs in ETF model portfolio: Sell ILF, Buy IYM
Trading signal occurs in iETF model portfolio: Sell EWZ, Buy INP
Trading signal occurs in FEMKX timimg model: Sell FEMKX, Buy CASH (Weekly STO of FEMKX is 74 dipped below the threshold of 75)

Investors were looking for a reason to sell and they got plenty. The company earning reports can not excite them to buy stocks and president Obama's proposed sticker banking rules pored the oil on the fire. The stock markets slide down big in the last three trading days. The S&P 500 index closed this week at 1091, down 3.9%, the Dow Jones Industrial Average decreased 4.12%, and the Nasdaq composite index lost 3.61% for the week.

Higher volatile funds react to the market sell off triggering trading signals in ETF, sETF model portfolios and FEMKX timing system. We will keep a close eye on next week's development.

Fund Rankings Update, 1/15/2010

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, nSSPP, SELECT, ETF, iETF, sETF have been posted at http://yechen.pan.googlepages.com/

The earning season began with Alcoa's disappointing announcement and stocks reacted to it. Most companies were expected to make large profits as Intel and JP Morgan because of their cost cuttings and the easy comparisons to the small number a year a go. The investors seemed to look beyond the earning numbers and focus on the revenue growth to gauge the strength of the economy recovery. Up and own are the nature of the stock price movement. As long as the trend is intact, we are still in the long position. The S&P 500 index closed this week at 1136, down 0.48%, the Dow Jones Industrial Average decreased 0.08%, and the Nasdaq composite index lost 1.26% for the week.

The transportation, and technology sectors are the stronger sectors this week, and Korea and India are still coming strong in the international arena.

Last week, I could not upload the ranking tables to Google site because of their system issue. To keep you informed about the ranking updates, I had to move the whole site (all the pages and their links) to another web host and that was why the ranking pages looked different last week. I hope this won't happen again but I can not complain much since these are all free services.

Fund Rankings Update, 1/8/2010

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, nSSPP, SELECT, ETF, iETF, sETF have been posted at http://ycprankings.atspace.com/

Trading signal occurs in SSPP model portfolio: Sell FEMKX, Buy FRESX.

Trading signal occurs in SELECT model portfolio: Sell FBSOX, Buy FSAIX.

A good start is half of the success, and stocks started this year with a good week. The S&P 500 index closed this week at 1144, up 2.68%, the Dow Jones Industrial Average increased 1.82%, and the Nasdaq composite index gained 2.12% for the week. The monthly chart of the S&P 500 index shows that the price is firmly above the trend line and the stochastic indicator STO[15,1] is at 86, above the threshold of 50. According to the chart, we are in the early stage of multi-year up trend.

The air transportation, automotive and basic material sectors are the stronger sectors this week, and Korea and India are coming strong in the international arena. In our SSPP ranking table, FEMKX was pushed out of the 7th rank by FDEGX and FMCSX, while in the SELECT ranking table, FBSOX was pushed out by FSELX.