Trading signal occurs in ETF mdoel portfolio: Sell IJS, Buy IYR.
Trading signal occurs in sETF mdoel portfolio: Sell IAT, Buy ICF.
After three losing weeks, stock finally turned positive. The S&P 500 index closed this week at 1091 up 2.51%, the Dow Jones Industrial Average increased 2.81%, and the Nasdaq composite index gained 1.1% for the week. However, all the indexes are below their 28 week moving averages. The support line now becomes the resistance. It may take some time for the major indexes to break the resistance to resume the up trend.
The current stock sell-off have pulled down the momentum of most of the sectors into negative territory. Only a few sectors, like real estate, transportation and leisure still maintain positive momentum. It is interesting to see that four out of our seven model portfolios are holding real estate sector funds right now. Our ETF and sETF model portfolios move to IYR and ICF this week, the nSSPP model portfolio moved to REIT index fund last week, while our SSPP model portfolio has held FRESX for more than five months since January. For the ranking strategy during the sell-off, the holding will keep switching to the strongest sector which resist the downward pressure the most. If the down trend is short-live, this holding is usually among the strongest sectors to rebound. However, if the down trend persists, the momentum of the last hold out will turn negative, and we will move CASH position since there won't be any funds with positive momentum.
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