Fund Rankings Update, 4/10/2015

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

Trading signal occurs in HSA model portfolio: Sell MLAAX, Buy FKASX.

US stocks opened significantly lower Monday due to the bad job report from previous Friday. However they quickly reversed the drop and ended up higher setting the tone for the rest of the week. For the week, S&P 500 index closed at 2102, up 1.79%, Dow Jones Industrial Average gained  1.66%, and Nasdaq composite index increased 2.23%.  Earning report season has started and companies will report their first quarter earning in next few weeks. We will see the fist impact of strong dollar and falling energy prices to company earnings. Earnings for S&P 500 companies are estimated to be lower by 5% year over year so we expect higher volatility in individual stocks.   

In the weekly chart, S&P 500 index has been trading in the 2040 to 2120 channel for six weeks. Its momentum indicator has been flat as investors are waiting for direction. A break either to the upside or to the down side will signal the next trending move. Since the index has been firmly supported by the 28 week moving average, I think the index will most likely to break on the upside. 

Weekly chart of S&P 500 index

In the past few weeks, emerging markets with China leading the charge have been very strong. Emerging markets and international markets have under-performed the US market in the last five years. With strong dollar and recovery of European economy, we expect emerging markets to do well.  This may be the year for emerging markets to shine again.