Fund rankings update, 9/23/2011

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

After hitting the top of the trading channel, stocks came right down to the bottom this past week.  The sell off started on Wednesday after the Fed released the statement pointing significant risk to the economy and stirred investors' fear of double dip recession. The sell off continued to Thursday and handed stock markets the worst week since October 2008.  The S&P 500 index closed this week at 1136 down 6.54%, the Dow Jones Industrial Average lost 6.41%, and the Nasdaq composite index decreased 5.3%.

The weekly chart of S&P 500 index shows that we are at the critical 1120 support level. The index fell to 1123 five weeks ago, and rebounded to top of the trading channel at 1216 last week. The silver lining is that at the same support level, the momentum indicator(STO) is higher right now than five weeks ago.  I hope the index can successfully test this support, forms a classical double bottom, and slowly reverses the trend.

Fund rankings update, 9/16/2011

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

After a few weeks in over sold condition, stocks finally had a nice technical rebound. The S&P 500 index closed this week at 1216 up 5.35%, the Dow Jones Industrial Average gained 4.7%, and the Nasdaq composite index increased 6.25%. Notice that S&P 500 index is still trading within the range of 1120 and 1250. The first step to reverse the down trend is for S&P 500 index to break the upper bound of 1250.

From the weekly chart of S&P 500 index, the momentum index, STO,  is moving up and the price is trading in the rising channel. These are all good signs, however, one week up does not make the trend. Before the STO climbing above 50, we will wait patiently on the sideline.

Fund rankings update, 9/9/2011

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 SELECT model portfolio: Sell FDLSX, Buy FSLXX.
Trading signal occurs in ETF model portfolio: Sell EWJ Buy CASH.

Trading signal occurs in iETF model portfolio: Sell EWM Buy CASH.

President Obama's plan failed to jolt the stock markets while European debt crisis is still haunting investors.  The S&P 500 index closed this week at 1154 down 1.68%, the Dow Jones Industrial Average lost 2.21%, and the Nasdaq composite index decreased 0.5%.

Our model portfolios have either moved to income oriented funds or to cash position due to negative AMI's. In this kind of market conditions, defensive positions will let you sleep better at night. We just have to patiently wait for the market uptrend to comeback.

PS. If you would like to have a google+ account (don't need to add me to your circle), you can click the invitation below:
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Fund Rankings Update, 9/2/2011

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 sETF model portfolio: Sell IEZ Buy CASH.

The upward momentum at the start of the week turned sour as consumer confidence is at its worst level since April 2009, and the economy did not generate any job growth in August. The S&P 500 index closed this week at 1173 down 0.4%, the Dow Jones Industrial Average lost 0.39%, and the Nasdaq composite index increased 0.02%.

Technically there is a resistance around 1250 in weekly chart of S&P 500 index. The index closed at 1220 on Wednesday and failed to broke the resistance in the subsequent attempts because of the weak momentum. From the price action in the past few weeks, we may see the index stay in the trading range of 1120 and 1250.

PS. If you would like to have a google+ account (don't need to add me to your circle), you can click the invitation below:
https://plus.google.com/_/notifications/ngemlink?path=%2F%3Fgpinv%3DNHHXnAtegY4%3ARUaA-zeGxXI