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 FSHOX, Buy FSUTX.
Trading signal occurs in iETF model portfolio: Sell EWS, Buy CASH.
Technical rebound occurred again at the important 200 day moving average for all the three major indexes. SP 500 index closed this week at 1325, up 3.73%. Dow Jones Industrial Average gained 3.59%, and Nasdaq composite index increased 4.04%.
After briefly fell below their 200 day MA, it is encouraging to see all the three major stock indexes get right back to stay above their 200 day moving averages and their daily momentum gaining traction. While the S&P 500 index is still below the 28 week MA in the weekly chart, its momentum indicator has reversed its downward direction. This gives us some hope that we may have seen the short term bottom and will see the start of consolidation and hopefully the reversal.
After nine weeks of downtrend, we have another two trading signals this week. In SELECT model portfolio, we are moving away from construction and housing sector and get into more conservative utility sector. We have held FSHOX for 6 months with a gain of 19%. In the iETF, we are selling EWS and move to cash because of negative AMI in the first rank. Global regions have under-performed comparing to US stock markets because of European debt crisis and slowdown in China economy. The trades have not been profitable in the past 2 years for iETF model portfolio. With the way Europe is handling its problem, we see the situation will last for a while.
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