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 42627, Buy 05084(PYR SM CP CORE POOL).
Stocks aided by the QE3 announced Thursday by FED chairman Ben Bernanke continued their advance. S&P 500 index closed the week at 1485 up 1.94%. Dow Jones Industrial Average gained 2.15%, and Nasdaq composite index increased 1.52%.
This stock rally has been very impressive. The S&P 500 index broke above its 28 week moving average in early June. The move was confirmed in mid-June when the momentum indicator STO[15,1] climbed above 50 in mid-June. The index then took out its previous high last week and grows more than 17% since its low of 1266 in May. With high momentum and good participation, the rally looks to take the stocks higher. Accompany the stock rally is the sector rotation. Most of our model portfolios have changed holdings in the past month. The latest change occurs in the RSP model portfolio, which switches from SSGA REIT index fund to PYR small cap core Pool due to momentum ranking change. The two portfolios that have not changed their holdings since beginning of the year are ETF and sETF model portfolios. ETF model portfolio has held Biotechnology index fund, IBB, for 25% gain and sETF has been holding home construction sector fund, ITB for 61% gain. Both funds have been very strong and continued to be strong.
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