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 FEMKX timing system, Sell FEMKX, Buy Cash.
Strong companies earnings reports especially APPLE's blow out quarterly earnings boosted investors' confidence. The SP 500 index closed this week at 1403 up 1.8%, the Dow Jones Industrial Average gained 1.53%, and APPLE push the Nasdaq composite index up 2.29%. Apple's stocks were trading at intra-day low of $555 on Tuesday and went up more than 10% to the highs of $618 on Wednesday after its earning report.
Our FEMKX timing system has issued a sell signal to move to the sideline. Fund price of FEMKX has stalled for two months with downward bias since end of February. The momentum indicator STO[15,1] has dropped below the sell threshold of 75 this week. In the weekly chart, FEMKX is approaching its 28 week moving average. It will have opportunity to rebound from that support, but for now the system is suggesting a wait and see position at the sideline.
Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Tradings were choppy last week. Stock prices went up initially on good company earnings but cooled down by the end of the week due to disappointing home sales and jobless claims. The SP 500 index closed this week at 1378 up 0.6%, the Dow Jones Industrial Average gained 1.4%, while APPLE pulled the Nasdaq composite index down 0.36%.
More companies are reporting quarterly earnings next week: APPLE, Merck, Exxon Mobil, Boding, Caterpillar, Amazon, and Starbuck. All eyes will be on APPLE's earning report on Tuesday. The stock after a parabolic runs has seen relentless selling for the past 10 days. APPLE stock price has dropped from the high of 644 to close at 573, right above its 50 day moving average. I think APPLE will have tough time meeting unrealistic earning expectation from investors, and there maybe opportunity to buy the stocks after their earning reports. A riskier entry point is 550 and a more patient approach is to wait for its weekly price come down to its 28 week moving average, which is far out in the future with more uncertainty.
Long term chart of S&P 500 index shows that the multi-year uptrend is still intact and the momentum is still strong.
Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Slowdown in China economy and worries about Spain's debt situation give stocks the first meaningful pull back since beginning of the year. The SP 500 index closed this week at 1370 down 1.99%, the Dow Jones Industrial Average lost 1.61%, while the Nasdaq composite index decreased 2.25%.
We will again be in the midst of company quarterly earning reports next week, and the stocks will be more volatile than usual as they will be affected one way or the other. The weekly chart of S&P 500 index shows that a short term pull back usually lasts about 3-4 weeks, and there may be a short term technical support at 1340 level.
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 SSPP model portfolio: Sell FDGFX, Buy FDGRX.
Stocks tried to digest their lofty gain so far this year. The SP 500 index closed this week at 1398 down 0.74%, the Dow Jones Industrial Average lost 1.15%, while the Nasdaq composite index decreased 0.36%.
S&P 500 has consolidated around 1400 level for the third week as shown in the weekly chart below. The weekly chart also shows that the index has been trending along the top of the Bollinger Band for three months now. In the past three years, the S&P 500 index had gone into 8% - 9 % correction to return to the mid point of the channel after trading along the top of the channel for 5 months. So, are we going to have temporarily pull back here and 2 more moths before major correction this time around?
