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 42535, Buy 05087(LSV LGE CP VALUE EQ).
Trading signal occurs in ETF model portfolio: Sell IDU, Buy IBB.
Trading signal occurs in FEMKX timing model: Sell Cash, Buy FEMKX
Rating downgrade of the euro zone countries dampened investors' confidence on Friday, but all major indexes still managed to post a small gain for the week. SP 500 index closed this week at 1289 up 0.88%, the Dow Jones Industrial Average gained 0.5%, and the Nasdaq composite index increased 1.36%.
Trading signals have turned positive one by one in our ranking tables as momentum of growth stock funds outpace the defensive utility or bond funds. This week, RSP model portfolio is moving from defensive PIMCO REAL RETRUN fund to a more aggressive large cap value stock fund, and in the ETF ranking table, signal was generated to move from utility sector fund to biotech sector fund. For our FEMKX timing model, which use STO as trading signal, a buy signal was trigger as its STO climb above the threshold of 50 (see chart below). The system has stayed away from the market for about 5 months since the last trade in August. The chart shows that the momentum indicator has climbed above 50 but the price is still below the trend line. A reversal of the trend will need the price to climb above the trend line for confirmation. Trading with this signal then is a bit risky, and a conservative trade will be to wait for the price to climb above the trend line. However, the FEMKX timing signals have been robust until the last trade in July-August so we shall see how this one performs.
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