Fund Rankings Update, 8/8/2014

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at "Rankings", "Trading Logs" pages, and  http://ycprankings.awardspace.us/RankingTables.htm.

Trading signal occurs in ETF model portfolio: Sell IGE, Buy FXI.
Trading signal occurs in RSP model portfolio: Sell 05087 (LSV LGE CP VALUE EQ), Buy 42625 (SSGA EMRG MKTS INDEX).

After sell-off a week before, markets tried to stabilize and manged to elk out a small gain amid lingering geopolitical tension and worries about European economic growth.  S&P 500 index climbed a bit to 1931, up 0.33%. Dow Jones Industrial Average gained 0.37%, and technology loaded Nasdaq composite index increase 0.42% for the week.   

Last week we talked about long tailed candled bounced off from trend line in weekly chart of S&P 500 index. As shown in the chart below, the long tail candle with the tip nearly touching the trend line. If the past pattern holds up, we should see the index turning around in the next week or two.  In the daily chart, the stochastic oscillator (STO) and MACD are turning around, and traders can start taking positions in the markets when daily STO climbs back above 20 and MACD histogram (blue number in the chart) becomes positive. 

The consolidation and sell-off have caused the sector rotation as traders and investors adjusted their portfolio to reduce the risk exposure. After last week's trading signal in sETF, we have two trading signals issued this week. In the ETF model portfolio, we change the position from engergy related IGE to China ETF fund, FXI, due to its economy recovery. In the RSP model portfolio, we are changing position from large cap fund, 05087 to emerging market index, 42627. We have held IGE for only 32 days with 4.12% loss and have held 05087 for 123 days with a gain of 2.88%.

Weekly Chart of S&P 500 Index

Daily Chart of S&P 500 Index