Fund Rankings Update, 10/17/2014

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 sETF model portfolio: Sell IYW, buy IBB.

Stocks experienced extreme volatility this past week, we saw Dow Jones Industrial average had 900 point swing for the week. Finally major indices rebounded from extreme oversold condition Friday to lessen the damage. For the week, S&P 500 index closed at 1886, down 1.02%. Dow Jones Industrial Average lost 0.99%, and Nasdaq composite index decreased 0.42%.   

A long tail "hammer" candle was formed in the weekly chart of S&P 500 index. Its tail reached near the 1810 level that we have discussed last week. After reaching that level, investors managed to pull the index up and closed the week with only 1% loss, which confirms the 1810 short term support level.  Since the index is fully below the 28 week moving average, the trend line turns from support to resistance, which stands at 1930. With the severe sell-off in the past few weeks, we do not expect the index will bounce right up with the "V" shape pattern like those in the past two years. Most likely we will see the index retest the short term support and stay below the trend line for few weeks to work off the volatility.  

A trading signal was issued in the sETF model portfolio to sell technology fund, IYW, and buy into Biotech fund, IBB. Biotech funds have been holding up quite well in the face of this sell-off relative to the general market. We have held IYW for 74 days with a loss of 3.12%.

Weekly chart of S&P 500 index