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 sETF model portfolio: Sell ITB, Buy IBB.
Weak retail sales and consumer confidence did not rattle investors' sentiment. With S&P 500 breaking above its 2007 high of 1575, all the major indexes are above their pre-crash high. S&P 500 index closed the week at 1588, up 2.29%, Dow Jones Industrial Average gained 2.06%, and Nasdaq composite increased 2.84% for the week.
Monthly chart of S&P 500 shows the four year long dramatically recovery of stock markets after the 2008-2009 crash. The index has come back more than double from march 2009 low of 671 to the present close of 1588. During this period, our SSPP model portfolio has gained 50%, RSP model portfolio has gained 74%, Select model portfolio has gained 84%, FEMKX model portfolio has gained 83%, ETF model portfolio has gained 22%, sETF model portfolio has gained 103%, and iETF model portfolio has lost 30%. Our momentum system is intended to profit from mid portion of the uptrend while reduce the risk during down trend. Tightening the trading thresholds, which increases the trading frequency, is one way to keep up with the increase stock markets volatility while change the trading performance. Readers, if interested, can experiment with different trading thresholds and let me know how they perform.
For the past 4 to 6 weeks, the momentum of housing/construction sectors has been fading away, while biotechnology sector has come up strong. A trading signal has occurred in sETF model portfolio to sell ITB and buy the current top rank fund, IBB, as AMI rank of ITB has fallen below 7. We have held ITB for 459 days with a gain of 87%.
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