Trading signal occurs in HSA model portfolio: Sell MLAAX, Buy FKASX.
US stocks did not move much in this shortened trading week due to Good Friday holiday. For the week, S&P 500 index closed at 2066, up 0.29%, Dow Jones Industrial Average gained 0.29%, and Nasdaq composite index decreased 0.09%. However, job data released by US Commerce Department Friday morning showed that the economy only produce 126k jobs in March far less than the 245k predicted by economists. The major indices will react badly when stock markets reopen next Monday.
S&P 500 index is till holding up above the 28 week moving average in the weekly chart. However, in the daily chart the momentum is falling and failed to hold above 50 day moving average. With the bad job report, we expect that the index will likely fall below its 28 week moving average in the weekly chart and test the 200 day moving average support at 2020 in the daily chart.
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| Weekly chart of S&P 500 index |
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| Daily chart of S$P 500 index |
A trading signal was issued this week in HSA model portfolio due to the strength in small cap stocks. The Average Momentum Index(AMI) of the current holding, large cap growth fund MLAAX, has fallen to 7th Rank in the ranking table. As the AMI rank fell below the 5th rank threshold, it is replaced with the current number 1 rank fund, small cap fund FKASX. The model portfolio has held MLAAX for 171 days with a gain of 15.6%.
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