Trading signal occurs in FEMKX model portfolio: Sell FEMKX, buy CASH.
Investors felt relief as FED keep the easy money policy in place on Wednesday. They were also calmed by the "no" vote in Scottish independence referendum to break out from United Kindom on Friday. S&P 500 index rose above 2000 level and closed at 2010, up 1.25%. Dow Jones Industrial Average gained 1.72%, and Nasdaq composite index increased 0.27% for the week.
In the weekly chart, S&P 500 index is still flirting around the 2000 level. It will be interesting to see if the index can continue to advance next week and truly break out from the 2000 level. On the other hand, it may test the short term support at 1950 which we have mentioned last week if the break out fails.
Two trading signals were issued this week. In SSPP model portfolio, FICDX is replaced with FOCPX due to AMI rank change. FICDX was bought in July when energy related sectors were outperforming others. However, the trend doese not sustain long engough and we have held FICDX for 74 days with a loss of 0.47%. For FEMKX timing system, the STO indicator has dropped to 54 below the selling threshold and a trading signal is issued to move to cash position. The model portfolio has held the fund since March for 200 days with a gain of 10.54%.
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| Weekly chart of S&P 500 index |
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