Trading signal occurs in ETF model portfolio: Sell IGN, Buy EZA.
Stocks were mix with upbeat economy data for manufacturing activity and weekly jobless claim advanced large cap stocks while rotation away from momentum stocks pulled down the small cap stocks. S&P 500 index closed at 1878, down 0.14%, Dow Jones Industrial Average gained 0.43%, and Nasdaq composite decreased 1.26% for the week.
As observed in the weekly charts, S&P 500 index is still in the flat consolidation mode while Nasdaq composite index is trying to stay above its 28 week MA and looking for a bounce. Technically, these consolidation is healthy as long as the indices stay above their support level.
Sector rotation has bee observed from our AMI ranking tables. Investors have rotated out of the technology sectors and moved into energy related sectors. Last week we had trading signal in sETF to move out of the networking IGN and trade into energy exploration IEO. This week, a trading signal was issued in ETF model portfolio to sell IGN and buy into Brazil country fund, EZA, which closely related to natural resource.
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| Weekly Chart of S&P 500 Index |
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| Weekly Chart of Nasdaq Composite Index |
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