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 six weeks of consecutive gains, stocks finally took a break for consolidation. S&P 500 index closed the week at 1411 down 0.5%. Dow Jones Industrial Average lost 0.88%, and Nasdaq composite index decreased 0.22%.
Hints of US and Euro central banks to take action to stimulate the economic growth has kept this rally going. Sector rotation is also underway during this summer rally. Technology and energy sectors have come up strong in the past month. In the international front, Australia (because of it natural resource), and some European countries (France, Sweden, Netherlands) have been gaining momentum. As summer is coming to an end, and investors and traders are coming back from their summer vacation, we expect the trading volume will pick up in the Fall to give more conviction to the direction of the markets.
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 FSUTX, Buy FBMPX.
Trading signal occurs in FEMKX market time system: Sell Cash, Buy FEMKX.
Better than expected economic news in retail sale and consumer confidence keept the rally going. Stocks continued marching higher for the sixth week. SP 500 index closed the week near the April high at 1418, up 0.87%. Dow Jones Industrial Average gained 0.51%, and Nasdaq composite index increased 1.84%.
With increasing momentum, S&P500 index is expected to continue treading higher. Even with a lot of uncertainty about the slow growth in US economy and debt crisis in Euro zone, stock markets have turned out a nice rally this summer. The
S&P500 index is 12% higher than its June low of 1266 and NASDAQ composite index is 12.8% higher. If you moved to side line in May as the old saying "sell in May, come back in September", you would have missed the whole rally this summer.
With the rally continue its course, our SELECT model portfolio and FEMKX timing system have move to offensive positions this week. In the SELECT ranking table, Multimedia Fund (FBMPX) is holding the top AMI ranking for the second week, and Utility Growth Fund (FSUTX) has dropped out to the top 7 rankings. According to the trading rule of SELECT model portfolio, we will sell FSUTX and buy FBMPX. In FEMKX timing system, a buy signal has been issued as the momentum indicator, STO(15,1), climbed above 50 this week. FEMKX timing model has been in cash position since April 30 for more than 100 days. Although it missed the summer rally, it also avoided the sharp drop in May. The trading histories for SELECT portfolio and FEMKX timing model can be found in https://sites.google.com/site/ycprankings/selecttradinglog.
Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Stocks continued marching higher and produced gain for the fifth week. SP 500 index closed the week at 1405, up 1.07%. Dow Jones Industrial Average gained 0.85%, and Nasdaq composite index increased 1.78%.
With increasing momentum, S&P500 index is expected to march higher. However, the index has just reached the rounded number of 1400 and near its April high of 1420. A couple weeks of consolidation at this level may be in the making before it heads even higher.
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 iETF model portfolio: Sell Cash, Buy EWW
US Economy added 163,000 new jobs in July according to Friday's job report. This surprised Wall Street on the upside and ended four days of slide in stock prices. SP 500 index closed the week at 1390, up 0.36%. Dow Jones Industrial Average gained 0.16%, and Nasdaq composite index increased 0.33%.
Rising tide lifts all boat. After few weeks of slow rally, the global indices also turn positive. The negative AMI in iETF was pushed out below the 7th rank in the ranking table, and a trading signal was issued for our iETF model portfolio to move from cash position to EWW (Mexico). For US domestic sectors, telecom and consumer staple sectors are gaining momenta. As S&P 500 index's technical picture is still in bull's favor, we will see this rally continues.
