Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Trading signal occurs in RSP model portfolio: Sell 42627, Buy 42635.
Trading signal occurs in SELECT model portfolio: Sell FBIOX, Buy FDLSX.
Trading signal occurs in ETF model portfolio: Sell IBB, Buy EWJ.
Trading signal occurs in iETF model portfolio: Sell EWY, Buy EWM.
Investors' fear of recession coupled with frustration towards politician's inability to resolve US long term debt issue have finally dragged the market down big time, and delivered Wall Street the worst week in two years. The S&P 500 index closed this week at 1199 down 7.19%, the Dow Jones Industrial Average lost 5.75%, and the Nasdaq composite index decreased 8.13%!
The weekly chart of S&P 500 index shows the severity of the selling. The index has struggled above the trend line in the past few weeks, and fallen sharply below the support with momentum indicator fell from 70 to 40 in one week. The broad based intensive selling has dramatically changed the momentum rankings in our ranking tables. Almost all the ranking tables have issued trading signals and moved to safer positions. Looking back at our trading history, the last time this happened is in August 2008 before the financial breakdown. Although economic conditions are quite different then and now, stock chart pattern provided similar technical concerns. It is important to follow through whatever the investing strategies you have especially during these kind of periods as they can prevent emotional tradings out of fear.
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